Synchrony Financial $SYF Shares Acquired by Cwm LLC

Key Points

• Cwm LLC increased its stake in Synchrony Financial by 77.7% during the second quarter, acquiring an additional 17,055 shares, bringing their total to around $2.6 million.
• Synchrony Financial's stock hit a peak of $71.58 with a market cap of $26.63 billion and a P/E ratio of 7.81, indicating a strong market position.
• The company announced a $1 billion share buyback program, suggesting that management believes the stock is undervalued.

Cwm LLC lifted its holdings in shares of Synchrony Financial (NYSE:SYF - Free Report) by 77.7% during the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 38,998 shares of the financial services provider's stock after purchasing an additional 17,055 shares during the quarter. Cwm LLC's holdings in Synchrony Financial were worth $2,603,000 as of its most recent filing with the SEC.

Several other hedge funds have also made changes to their positions in SYF. Zions Bancorporation National Association UT acquired a new stake in shares of Synchrony Financial during the first quarter worth about $30,000. Geneos Wealth Management Inc. lifted its position in shares of Synchrony Financial by 337.0% during the first quarter. Geneos Wealth Management Inc. now owns 590 shares of the financial services provider's stock worth $31,000 after purchasing an additional 455 shares in the last quarter. MAI Capital Management lifted its position in shares of Synchrony Financial by 36.3% during the first quarter. MAI Capital Management now owns 627 shares of the financial services provider's stock worth $33,000 after purchasing an additional 167 shares in the last quarter. Headlands Technologies LLC acquired a new stake in shares of Synchrony Financial during the first quarter worth about $34,000. Finally, TCTC Holdings LLC lifted its position in shares of Synchrony Financial by 89.0% during the first quarter. TCTC Holdings LLC now owns 788 shares of the financial services provider's stock worth $42,000 after purchasing an additional 371 shares in the last quarter. Institutional investors and hedge funds own 96.48% of the company's stock.

Synchrony Financial Stock Up 1.9%

SYF stock opened at $71.58 on Friday. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.91. Synchrony Financial has a twelve month low of $40.54 and a twelve month high of $77.41. The company's 50 day moving average is $73.43 and its two-hundred day moving average is $64.75. The stock has a market cap of $26.63 billion, a P/E ratio of 7.81, a PEG ratio of 0.71 and a beta of 1.50.

Synchrony Financial (NYSE:SYF - Get Free Report) last released its quarterly earnings data on Wednesday, October 15th. The financial services provider reported $2.86 earnings per share for the quarter, topping analysts' consensus estimates of $2.22 by $0.64. Synchrony Financial had a net margin of 15.84% and a return on equity of 22.96%. The company had revenue of $3.82 billion for the quarter, compared to analysts' expectations of $3.79 billion. During the same quarter last year, the company earned $1.94 earnings per share. The firm's revenue for the quarter was up .2% on a year-over-year basis. Synchrony Financial has set its FY 2025 guidance at EPS. Research analysts expect that Synchrony Financial will post 7.67 earnings per share for the current fiscal year.

Synchrony Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Tuesday, August 5th were issued a dividend of $0.30 per share. The ex-dividend date of this dividend was Tuesday, August 5th. This represents a $1.20 dividend on an annualized basis and a yield of 1.7%. Synchrony Financial's dividend payout ratio (DPR) is presently 13.10%.

Synchrony Financial declared that its Board of Directors has initiated a share repurchase program on Wednesday, October 15th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the financial services provider to purchase up to 3.7% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

Analyst Ratings Changes

Several analysts recently weighed in on the stock. JMP Securities raised their target price on shares of Synchrony Financial from $77.00 to $88.00 and gave the company a "market outperform" rating in a report on Thursday, September 25th. The Goldman Sachs Group lifted their price target on shares of Synchrony Financial from $70.00 to $78.00 and gave the stock a "buy" rating in a research note on Wednesday, July 2nd. Wall Street Zen upgraded shares of Synchrony Financial from a "hold" rating to a "buy" rating in a research note on Saturday, September 20th. Hsbc Global Res upgraded shares of Synchrony Financial from a "hold" rating to a "strong-buy" rating in a research note on Thursday, October 9th. Finally, HSBC upgraded shares of Synchrony Financial from a "hold" rating to a "buy" rating and lifted their price target for the stock from $73.00 to $81.00 in a research note on Friday, October 10th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat.com, Synchrony Financial presently has a consensus rating of "Moderate Buy" and a consensus target price of $81.38.

Insider Buying and Selling

In other news, insider Darrell Owens sold 600 shares of the firm's stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $67.95, for a total transaction of $40,770.00. Following the transaction, the insider directly owned 21,372 shares in the company, valued at approximately $1,452,227.40. This trade represents a 2.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Brian J. Sr. Wenzel sold 8,514 shares of the firm's stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $70.00, for a total transaction of $595,980.00. Following the transaction, the insider owned 68,588 shares in the company, valued at approximately $4,801,160. This trade represents a 11.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 0.32% of the company's stock.

Synchrony Financial Company 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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