Swedbank AB Boosts Position in Synchrony Financial $SYF

Key Points

• Swedbank AB has increased its stake in Synchrony Financial by 52.2%, now owning over 151,000 shares valued at approximately $10 million.
• Synchrony Financial recently reported earnings of $2.50 per share for the last quarter, surpassing analysts' expectations of $1.72.
• The company also declared a quarterly dividend of $0.30, representing a 1.6% annualized yield, with a low dividend payout ratio of 14.56%.

Swedbank AB boosted its holdings in Synchrony Financial (NYSE:SYF - Free Report) by 52.2% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 151,003 shares of the financial services provider's stock after purchasing an additional 51,800 shares during the quarter. Swedbank AB's holdings in Synchrony Financial were worth $10,078,000 at the end of the most recent quarter.

Several other hedge funds have also bought and sold shares of the business. Vanguard Group Inc. grew its position in Synchrony Financial by 0.6% in the 1st quarter. Vanguard Group Inc. now owns 48,420,051 shares of the financial services provider's stock valued at $2,563,358,000 after purchasing an additional 281,383 shares during the period. Allianz Asset Management GmbH grew its position in Synchrony Financial by 6.5% in the 1st quarter. Allianz Asset Management GmbH now owns 5,868,022 shares of the financial services provider's stock valued at $310,653,000 after purchasing an additional 358,708 shares during the period. Invesco Ltd. grew its position in Synchrony Financial by 13.7% in the 1st quarter. Invesco Ltd. now owns 5,858,422 shares of the financial services provider's stock valued at $310,145,000 after purchasing an additional 706,212 shares during the period. Southpoint Capital Advisors LP grew its position in Synchrony Financial by 25.0% in the 1st quarter. Southpoint Capital Advisors LP now owns 5,000,000 shares of the financial services provider's stock valued at $264,700,000 after purchasing an additional 1,000,000 shares during the period. Finally, Ameriprise Financial Inc. grew its position in Synchrony Financial by 36.0% in the 1st quarter. Ameriprise Financial Inc. now owns 4,900,281 shares of the financial services provider's stock valued at $259,421,000 after purchasing an additional 1,297,859 shares during the period. Institutional investors and hedge funds own 96.48% of the company's stock.

Synchrony Financial Stock Performance

Shares of NYSE SYF traded down $0.97 during mid-day trading on Monday, reaching $75.62. 3,205,178 shares of the company's stock were exchanged, compared to its average volume of 3,073,626. The firm has a market capitalization of $28.14 billion, a price-to-earnings ratio of 9.18, a price-to-earnings-growth ratio of 0.77 and a beta of 1.48. Synchrony Financial has a 52 week low of $40.54 and a 52 week high of $77.41. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.24 and a quick ratio of 1.24. The firm has a 50-day moving average price of $72.74 and a two-hundred day moving average price of $62.29.

Synchrony Financial (NYSE:SYF - Get Free Report) last released its earnings results 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 company had revenue of $3.65 billion for the quarter, compared to analysts' expectations of $3.71 billion. Synchrony Financial had a return on equity of 21.34% and a net margin of 14.43%.The business's revenue for the quarter was down 1.8% compared to the same quarter last year. During the same period in the previous year, the business posted $1.55 EPS. Synchrony Financial has set its FY 2025 guidance at EPS. Analysts predict that Synchrony Financial will post 7.67 EPS for the current year.

Synchrony Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Investors of record on Tuesday, August 5th were paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date was Tuesday, August 5th. Synchrony Financial's payout ratio is currently 14.56%.

Analyst Ratings Changes

Several research firms recently issued reports on SYF. Rothschild & Co Redburn began coverage on shares of Synchrony Financial in a research report on Friday, August 1st. They issued a "neutral" rating and a $72.00 price target for the company. Wall Street Zen raised shares of Synchrony Financial from a "hold" rating to a "buy" rating in a report on Saturday. Truist Financial lifted their price objective on shares of Synchrony Financial from $68.00 to $76.00 and gave the stock a "hold" rating in a report on Thursday, July 24th. Redburn Atlantic raised shares of Synchrony Financial to a "hold" rating in a report on Friday, August 1st. Finally, Barclays cut their price objective on shares of Synchrony Financial from $81.00 to $80.00 and set an "overweight" rating on the stock in a report on Wednesday, July 23rd. Twelve analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $73.79.

Insider Activity at Synchrony Financial

In other Synchrony Financial news, insider Curtis Howse sold 11,380 shares of Synchrony Financial stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $65.00, for a total transaction of $739,700.00. Following the completion of the transaction, the insider owned 108,062 shares of the company's stock, valued at $7,024,030. The trade was a 9.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Brian J. Sr. Wenzel sold 8,514 shares of Synchrony Financial stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $70.00, for a total value of $595,980.00. Following the transaction, the insider directly owned 68,588 shares of the company's stock, valued at $4,801,160. The trade was a 11.04% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 20,494 shares of company stock worth $1,376,450. Company insiders own 0.33% of the company's stock.

About Synchrony Financial

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.