Russell Investments Group Ltd. Lowers Holdings in Synchrony Financial (NYSE:SYF)

Key Points

• Russell Investments Group Ltd. reduced its holdings in Synchrony Financial by 24.0%, resulting in ownership of 1,010,903 shares valued at approximately $53.48 million.
• Synchrony Financial reported an earnings per share (EPS) of $2.50 in its latest quarterly results, exceeding analysts' estimates of $1.72 by $0.78.
• The company announced a quarterly dividend of $0.30 per share, reflecting an annualized dividend yield of 1.7%, with a dividend payout ratio of 14.56%.

Russell Investments Group Ltd. trimmed its position in Synchrony Financial (NYSE:SYF - Free Report) by 24.0% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 1,010,903 shares of the financial services provider's stock after selling 319,493 shares during the quarter. Russell Investments Group Ltd. owned 0.27% of Synchrony Financial worth $53,484,000 at the end of the most recent reporting period.

Several other hedge funds have also made changes to their positions in the company. Envestnet Asset Management Inc. increased its holdings in shares of Synchrony Financial by 15.4% in the 4th quarter. Envestnet Asset Management Inc. now owns 231,202 shares of the financial services provider's stock valued at $15,028,000 after acquiring an additional 30,790 shares during the period. Sagespring Wealth Partners LLC purchased a new position in shares of Synchrony Financial in the 4th quarter valued at $252,000. SageView Advisory Group LLC purchased a new position in shares of Synchrony Financial in the 4th quarter valued at $247,000. Mariner LLC increased its holdings in shares of Synchrony Financial by 10.5% in the 4th quarter. Mariner LLC now owns 112,643 shares of the financial services provider's stock valued at $7,322,000 after acquiring an additional 10,705 shares during the period. Finally, CreativeOne Wealth LLC purchased a new position in shares of Synchrony Financial in the 4th quarter valued at $532,000. 96.48% of the stock is currently owned by hedge funds and other institutional investors.

Synchrony Financial Price Performance

Shares of NYSE:SYF opened at $72.65 on Thursday. The business's 50 day simple moving average is $67.36 and its 200-day simple moving average is $60.26. The firm has a market capitalization of $27.03 billion, a price-to-earnings ratio of 8.82, a price-to-earnings-growth ratio of 0.74 and a beta of 1.49. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.24 and a quick ratio of 1.24. Synchrony Financial has a 12 month low of $40.54 and a 12 month high of $73.76.

Synchrony Financial (NYSE:SYF - Get Free Report) last announced its quarterly earnings results on Tuesday, July 22nd. The financial services provider reported $2.50 EPS for the quarter, topping the consensus estimate of $1.72 by $0.78. Synchrony Financial had a return on equity of 21.34% and a net margin of 14.43%. The business had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.71 billion. During the same quarter in the previous year, the company earned $1.55 EPS. The company's quarterly revenue was down 1.8% on a year-over-year basis. As a group, equities analysts forecast that Synchrony Financial will post 7.67 earnings per share for the current fiscal year.

Synchrony Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 15th. Stockholders of record on Tuesday, August 5th will be issued a dividend of $0.30 per share. The ex-dividend date is Tuesday, August 5th. This represents a $1.20 annualized dividend and a dividend yield of 1.7%. Synchrony Financial's dividend payout ratio (DPR) is 14.56%.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on SYF shares. Wall Street Zen upgraded Synchrony Financial from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. JMP Securities boosted their target price on Synchrony Financial from $68.00 to $77.00 and gave the stock a "market outperform" rating in a research note on Thursday, July 17th. Morgan Stanley boosted their target price on Synchrony Financial from $48.00 to $70.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 10th. The Goldman Sachs Group boosted their target price on Synchrony Financial from $70.00 to $78.00 and gave the stock a "buy" rating in a research note on Wednesday, July 2nd. Finally, Truist Financial boosted their target price on Synchrony Financial from $68.00 to $76.00 and gave the stock a "hold" rating in a research note on Thursday, July 24th. Eight equities research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $74.05.

Insiders Place Their Bets

In other news, insider Jonathan S. Mothner sold 40,639 shares of the company's stock in a transaction on Monday, May 19th. The stock was sold at an average price of $60.07, for a total transaction of $2,441,184.73. Following the completion of the sale, the insider directly owned 146,628 shares in the company, valued at $8,807,943.96. This represents a 21.70% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, insider Brian J. Sr. Wenzel sold 8,514 shares of the company's stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $70.00, for a total value of $595,980.00. Following the sale, the insider owned 68,588 shares of the company's stock, valued at approximately $4,801,160. The trade was a 11.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 61,133 shares of company stock worth $3,817,635 over the last ninety days. Company insiders own 0.32% of the company's stock.

Synchrony Financial Profile

Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States. It provides credit products, such as credit cards, commercial credit products, and consumer installment loans. The company also offers private label credit cards, dual co-brand and general purpose credit cards, short- and long-term installment loans, and consumer banking products; and deposit products, including certificates of deposit, individual retirement accounts, money market accounts, and savings accounts, and sweep and affinity deposits, as well as accepts deposits through third-party securities brokerage firms.

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