Royal Bank of Canada Boosts Holdings in Synchrony Financial $SYF

Key Points

• Royal Bank of Canada increased its Synchrony Financial stake by 39.4% in the first quarter to 825,927 shares valued at approximately $56.2 million. Institutional investors and hedge funds collectively own 96.48% of SYF.
• Synchrony reported quarterly EPS of $2.59, beating estimates of $2.14, on revenue of $3.72 billion. The company also raised its quarterly dividend to $0.34 per share, yielding approximately 1.8%.
• Analysts maintain a generally positive outlook, with the stock receiving a “Moderate Buy” consensus rating and an average price target of $87.72 versus its recent price of $75.82.

Royal Bank of Canada boosted its holdings in shares of Synchrony Financial (NYSE:SYF - Free Report) by 39.4% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 825,927 shares of the financial services provider's stock after acquiring an additional 233,580 shares during the quarter. Royal Bank of Canada owned about 0.25% of Synchrony Financial worth $56,179,000 at the end of the most recent quarter.

A number of other institutional investors have also made changes to their positions in the stock. Ritholtz Wealth Management grew its stake in shares of Synchrony Financial by 21.9% in the fourth quarter. Ritholtz Wealth Management now owns 94,121 shares of the financial services provider's stock valued at $7,852,000 after buying an additional 16,901 shares in the last quarter. KTF Investments LLC purchased a new stake in shares of Synchrony Financial during the fourth quarter worth approximately $3,923,000. Assenagon Asset Management S.A. increased its position in shares of Synchrony Financial by 959.4% in the 1st quarter. Assenagon Asset Management S.A. now owns 545,880 shares of the financial services provider's stock valued at $37,131,000 after purchasing an additional 494,354 shares during the last quarter. Jefferies Financial Group Inc. raised its stake in Synchrony Financial by 701.9% in the fourth quarter. Jefferies Financial Group Inc. now owns 120,996 shares of the financial services provider's stock valued at $10,095,000 after buying an additional 105,907 shares in the last quarter. Finally, Arbejdsmarkedets Tillaegspension raised its position in shares of Synchrony Financial by 31.2% during the 1st quarter. Arbejdsmarkedets Tillaegspension now owns 376,640 shares of the financial services provider's stock worth $25,619,000 after acquiring an additional 89,528 shares in the last quarter. 96.48% of the stock is currently owned by institutional investors and hedge funds.

Synchrony Financial Trading Down 1.7%

Shares of Synchrony Financial stock opened at $75.82 on Friday. The business's fifty day moving average is $73.78 and its two-hundred day moving average is $72.66. Synchrony Financial has a fifty-two week low of $63.08 and a fifty-two week high of $88.77. The firm has a market cap of $24.67 billion, a PE ratio of 7.77, a P/E/G ratio of 0.71 and a beta of 1.32. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 1.08.

Synchrony Financial (NYSE:SYF - Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $2.59 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.14 by $0.45. Synchrony Financial had a return on equity of 23.09% and a net margin of 15.44%.The firm had revenue of $3.72 billion for the quarter, compared to analyst estimates of $3.72 billion. During the same period last year, the company earned $2.50 EPS. Synchrony Financial has set its FY 2026 guidance at 9.250-9.500 EPS. Analysts anticipate that Synchrony Financial will post 9.35 earnings per share for the current year.

Synchrony Financial announced that its Board of Directors has authorized a stock buyback program on Tuesday, April 21st that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the financial services provider to buy shares of its stock through open market purchases. Shares repurchase programs are usually a sign that the company's board of directors believes its shares are undervalued.

Synchrony Financial Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 17th. Investors of record on Wednesday, August 5th will be issued a $0.34 dividend. The ex-dividend date is Wednesday, August 5th. This is an increase from Synchrony Financial's previous quarterly dividend of $0.30. This represents a $1.36 dividend on an annualized basis and a yield of 1.8%. Synchrony Financial's payout ratio is 12.30%.

Insider Buying and Selling at Synchrony Financial

In other news, insider Jonathan S. Mothner sold 51,258 shares of Synchrony Financial stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $71.23, for a total value of $3,651,107.34. Following the transaction, the insider directly owned 132,664 shares of the company's stock, valued at $9,449,656.72. The trade was a 27.87% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.36% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on SYF shares. BTIG Research cut shares of Synchrony Financial from a "buy" rating to a "neutral" rating in a research report on Wednesday, April 22nd. Truist Financial lifted their price objective on shares of Synchrony Financial from $71.00 to $82.00 and gave the company a "hold" rating in a research report on Thursday, April 23rd. HSBC boosted their target price on Synchrony Financial from $93.00 to $97.00 and gave the stock a "buy" rating in a research report on Monday, July 13th. Royal Bank Of Canada cut their price target on shares of Synchrony Financial from $85.00 to $80.00 and set a "sector perform" rating for the company in a report on Wednesday, July 22nd. Finally, Wells Fargo & Company dropped their price objective on Synchrony Financial from $95.00 to $88.00 and set an "overweight" rating for the company in a research note on Wednesday, July 22nd. Twelve analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $87.72.

Synchrony Financial News Roundup

Here are the key news stories impacting Synchrony Financial this week:

• Positive Sentiment: Long-term earnings outlook improved: Zacks Research raised its FY2028 EPS forecast to $11.57 from $10.89 and increased its FY2026 estimate slightly to $9.35 from $9.33. The FY2026 figure is in line with the broader consensus forecast. Zacks Research earnings estimates
• Neutral Sentiment: Synchrony issued $1.1 billion of senior notes: The financing, launched under an underwriting agreement dated July 28, provides additional capital but also increases the company’s debt obligations and future interest expense. Synchrony Financial Issues $1.1 Billion Senior Notes
• Neutral Sentiment: Truist maintained its Hold rating: The reaffirmation indicates no change in the analyst’s view, limiting the potential for a fresh positive catalyst. Truist Financial Reaffirms Hold Rating
• Negative Sentiment: Several near-term EPS forecasts were cut: Zacks lowered its Q3 2026 estimate to $2.40 from $2.55, Q1 2027 to $2.32 from $2.42, Q3 2027 to $2.93 from $3.02, and Q1 2028 to $2.63 from $2.67. These reductions suggest some caution about Synchrony’s nearer-term earnings momentum, despite the stable $9.35 FY2026 consensus forecast.

Synchrony Financial Profile

Synchrony Financial NYSE: SYF is a consumer financial services company that specializes in providing point-of-sale financing and private-label, co-branded and branded credit card programs. The company serves as a payments and lending partner to retailers, digital merchants and service providers, offering consumer financing solutions designed to drive customer engagement and sales. Synchrony also operates a direct bank that offers deposit products, including savings accounts and certificates of deposit, which support its funding and customer-facing product suite.

Its core product set includes private-label and co-branded credit cards, general-purpose credit cards, installment loan programs and promotional financing options that are integrated into merchants' checkout experiences.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.