Synchrony Financial $SYF Position Cut by California State Teachers Retirement System

Key Points

• California State Teachers Retirement System reduced its Synchrony Financial stake by 4.6%, selling 23,174 shares and retaining 479,944 shares worth approximately $32.6 million. Institutional investors collectively own 96.48% of the company.
• Analyst sentiment remains favorable, with 12 Buy ratings and seven Holds, producing a consensus rating of Moderate Buy and an average price target of $87.72.
• Synchrony reported quarterly EPS of $2.59, beating estimates by $0.45, and raised its quarterly dividend from $0.30 to $0.34 per share, equivalent to a 1.8% yield.

California State Teachers Retirement System reduced its holdings in Synchrony Financial (NYSE:SYF - Free Report) by 4.6% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 479,944 shares of the financial services provider's stock after selling 23,174 shares during the quarter. California State Teachers Retirement System owned 0.14% of Synchrony Financial worth $32,646,000 at the end of the most recent quarter.

Several other hedge funds have also recently added to or reduced their stakes in SYF. Royal Bank of Canada grew its stake in shares of Synchrony Financial by 39.4% in the first quarter. Royal Bank of Canada now owns 825,927 shares of the financial services provider's stock worth $56,179,000 after purchasing an additional 233,580 shares in the last quarter. Estate Counselors LLC acquired a new position in shares of Synchrony Financial during the first quarter valued at $1,778,000. Quantinno Capital Management LP raised its stake in shares of Synchrony Financial by 7.7% during the first quarter. Quantinno Capital Management LP now owns 902,031 shares of the financial services provider's stock valued at $61,356,000 after purchasing an additional 64,196 shares in the last quarter. Gateway Wealth Partners LLC bought a new stake in shares of Synchrony Financial during the first quarter valued at about $1,170,000. Finally, Weiss Asset Management LP lifted its holdings in Synchrony Financial by 844.8% in the first quarter. Weiss Asset Management LP now owns 243,486 shares of the financial services provider's stock worth $16,562,000 after purchasing an additional 217,716 shares during the period. Institutional investors own 96.48% of the company's stock.

Analyst Ratings Changes

A number of equities analysts recently issued reports on SYF shares. HSBC increased their target price on shares of Synchrony Financial from $93.00 to $97.00 and gave the company a "buy" rating in a research report on Monday, July 13th. BTIG Research downgraded shares of Synchrony Financial from a "buy" rating to a "neutral" rating in a research report on Wednesday, April 22nd. Loop Capital began coverage on shares of Synchrony Financial in a research note on Friday, May 22nd. They issued a "hold" rating and a $81.00 price target for the company. Truist Financial raised their price objective on shares of Synchrony Financial from $71.00 to $82.00 and gave the company a "hold" rating in a research note on Thursday, April 23rd. Finally, Royal Bank Of Canada dropped their target price on Synchrony Financial from $85.00 to $80.00 and set a "sector perform" rating on the stock in a report on Wednesday, July 22nd. Twelve investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $87.72.

Insider Activity at Synchrony Financial

In related news, insider Jonathan S. Mothner sold 51,258 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $71.23, for a total transaction of $3,651,107.34. Following the completion of the sale, the insider directly owned 132,664 shares of the company's stock, valued at $9,449,656.72. This represents a 27.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.36% of the stock is owned by insiders.

Synchrony Financial News Summary

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 Trading Down 1.7%

Shares of SYF stock opened at $75.82 on Friday. The stock has a 50-day simple moving average of $73.78 and a 200 day simple moving average of $72.66. The stock has a market capitalization of $24.67 billion, a P/E ratio of 7.77, a P/E/G ratio of 0.72 and a beta of 1.32. Synchrony Financial has a fifty-two week low of $63.08 and a fifty-two week high of $88.77. 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 EPS for the quarter, topping the consensus estimate of $2.14 by $0.45. Synchrony Financial had a net margin of 15.44% and a return on equity of 23.09%. The firm had revenue of $3.72 billion for the quarter, compared to analysts' expectations of $3.72 billion. During the same period in the previous year, the business earned $2.50 earnings per share. Synchrony Financial has set its FY 2026 guidance at 9.250-9.500 EPS. On average, sell-side analysts expect that Synchrony Financial will post 9.35 earnings per share for the current fiscal year.

Synchrony Financial Increases Dividend

The firm 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. This represents a $1.36 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date is Wednesday, August 5th. This is an increase from Synchrony Financial's previous quarterly dividend of $0.30. Synchrony Financial's payout ratio is presently 12.30%.

Synchrony Financial declared that its board has initiated a stock buyback plan on Tuesday, April 21st that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the financial services provider to reacquire shares of its stock through open market purchases. Shares repurchase plans are usually a sign that the company's board believes its shares are undervalued.

About Synchrony Financial

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.

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