RWC Asset Management LLP Increases Position in Synchrony Financial (NYSE:SYF)

Key Points

• RWC Asset Management LLP significantly increased its stake in Synchrony Financial by 558.4% during the first quarter, owning 57,377 shares valued at approximately $3.04 million.
• Institutional investors own a substantial 96.48% of Synchrony Financial's stock, with notable recent acquisitions from firms like Norges Bank and Price T Rowe Associates.
• Analysts have varied price targets for Synchrony Financial, with the consensus price target being $74.17 and a majority rating it as a "Moderate Buy."

RWC Asset Management LLP lifted its position in shares of Synchrony Financial (NYSE:SYF - Free Report) by 558.4% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 57,377 shares of the financial services provider's stock after purchasing an additional 48,662 shares during the period. RWC Asset Management LLP's holdings in Synchrony Financial were worth $3,038,000 at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. Allspring Global Investments Holdings LLC lifted its position in shares of Synchrony Financial by 30.4% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 73,136 shares of the financial services provider's stock worth $3,895,000 after purchasing an additional 17,061 shares during the last quarter. U.S. Capital Wealth Advisors LLC acquired a new stake in Synchrony Financial during the 1st quarter worth $11,506,000. BTC Capital Management Inc. raised its stake in Synchrony Financial by 25.9% during the 1st quarter. BTC Capital Management Inc. now owns 65,835 shares of the financial services provider's stock worth $3,485,000 after acquiring an additional 13,526 shares in the last quarter. Merit Financial Group LLC raised its stake in Synchrony Financial by 70.2% during the 1st quarter. Merit Financial Group LLC now owns 10,657 shares of the financial services provider's stock worth $564,000 after acquiring an additional 4,397 shares in the last quarter. Finally, Clarius Group LLC acquired a new stake in Synchrony Financial during the 1st quarter worth $242,000. 96.48% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other Synchrony Financial news, insider Curtis Howse sold 11,380 shares of the company's stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $65.00, for a total value of $739,700.00. Following the sale, the insider owned 108,062 shares of the company's stock, valued at $7,024,030. This represents a 9.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jonathan S. Mothner sold 40,639 shares of the company's stock in a transaction dated Monday, May 19th. The shares were 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 trade represents a 21.70% decrease in their position. The disclosure for this sale can be found here. 0.32% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on SYF shares. JMP Securities lifted their price target on shares of Synchrony Financial from $68.00 to $77.00 and gave the stock a "market outperform" rating in a research note on Thursday, July 17th. Truist Financial lifted their price target on shares of Synchrony Financial from $68.00 to $76.00 and gave the stock a "hold" rating in a research note on Thursday, July 24th. Royal Bank Of Canada lifted their price target on shares of Synchrony Financial from $75.00 to $78.00 and gave the stock a "sector perform" rating in a research note on Wednesday, July 23rd. Wall Street Zen upgraded shares of Synchrony Financial from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Finally, The Goldman Sachs Group lifted their price objective on shares of Synchrony Financial from $70.00 to $78.00 and gave the company a "buy" rating in a research note on Wednesday, July 2nd. Six analysts have rated the stock with a hold rating and thirteen have given a buy rating to the stock. According to data from MarketBeat.com, Synchrony Financial presently has an average rating of "Moderate Buy" and an average price target of $74.17.

Synchrony Financial Price Performance

SYF stock traded down $0.06 during trading on Thursday, reaching $70.20. 1,426,392 shares of the company were exchanged, compared to its average volume of 4,129,866. The company has a market cap of $26.12 billion, a P/E ratio of 8.52, a PEG ratio of 0.71 and a beta of 1.46. Synchrony Financial has a 52-week low of $40.54 and a 52-week high of $73.76. The stock's 50 day moving average price is $64.99 and its 200 day moving average price is $60.17. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.24 and a current ratio of 1.24.

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

Synchrony Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 15th. Shareholders of record on Tuesday, August 5th will be issued a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 1.71%. The ex-dividend date is Tuesday, August 5th. Synchrony Financial's dividend payout ratio (DPR) is presently 14.56%.

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.