Synchrony Financial $SYF Shares Bought by Swedbank AB

Key Points

• Swedbank AB boosted its stake in Synchrony Financial by 12.8% in the fourth quarter, ending with 168,579 shares valued at about $14.1 million. Institutional investors and hedge funds now own 96.48% of the company.
• Synchrony beat earnings expectations in its latest quarterly report, posting $2.27 EPS versus the $2.14 consensus estimate. However, revenue came in below expectations at $3.70 billion and fell 7.4% year over year.
• The company maintained a shareholder-friendly capital return policy by declaring a $0.30 quarterly dividend and initiating a stock repurchase program. The dividend implies a 1.6% annual yield, while analysts currently rate the stock a consensus “Moderate Buy” with an average price target of $86.32.

Swedbank AB increased its holdings in Synchrony Financial (NYSE:SYF - Free Report) by 12.8% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 168,579 shares of the financial services provider's stock after purchasing an additional 19,193 shares during the quarter. Swedbank AB's holdings in Synchrony Financial were worth $14,065,000 at the end of the most recent reporting period.

A number of other large investors also recently bought and sold shares of the business. Westside Investment Management Inc. raised its holdings in shares of Synchrony Financial by 100.0% during the third quarter. Westside Investment Management Inc. now owns 358 shares of the financial services provider's stock valued at $25,000 after acquiring an additional 179 shares during the last quarter. FWL Investment Management LLC acquired a new position in shares of Synchrony Financial during the third quarter valued at approximately $26,000. Palisade Asset Management LLC acquired a new position in shares of Synchrony Financial during the third quarter valued at approximately $29,000. Geneos Wealth Management Inc. raised its holdings 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 valued at $31,000 after acquiring an additional 455 shares during the last quarter. Finally, Colonial Trust Co SC raised its holdings in shares of Synchrony Financial by 40.2% during the third quarter. Colonial Trust Co SC now owns 474 shares of the financial services provider's stock valued at $34,000 after acquiring an additional 136 shares during the last quarter. Institutional investors and hedge funds own 96.48% of the company's stock.

Synchrony Financial Price Performance

NYSE:SYF opened at $73.11 on Friday. Synchrony Financial has a one year low of $55.10 and a one year high of $88.77. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.24 and a current ratio of 1.24. The stock has a market cap of $24.59 billion, a PE ratio of 7.56, a P/E/G ratio of 0.64 and a beta of 1.37. The stock has a 50 day moving average price of $70.63 and a 200 day moving average price of $75.03.

Synchrony Financial (NYSE:SYF - Get Free Report) last posted its quarterly earnings results on Tuesday, April 21st. The financial services provider reported $2.27 EPS for the quarter, beating the consensus estimate of $2.14 by $0.13. Synchrony Financial had a return on equity of 23.41% and a net margin of 15.80%.The firm had revenue of $3.70 billion during the quarter, compared to analysts' expectations of $3.81 billion. During the same quarter last year, the firm earned $1.89 earnings per share. The business's revenue for the quarter was down 7.4% on a year-over-year basis. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. Equities research analysts expect that Synchrony Financial will post 9.29 EPS for the current fiscal year.

Synchrony Financial Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Tuesday, May 5th will be issued a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Tuesday, May 5th. Synchrony Financial's dividend payout ratio (DPR) is currently 12.41%.

Synchrony Financial announced that its board has initiated a stock repurchase program on Tuesday, April 21st that allows the company to buyback $0.00 in shares. This buyback authorization allows the financial services provider to buy shares of its stock through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on SYF shares. Truist Financial increased their target price on Synchrony Financial from $71.00 to $82.00 and gave the company a "hold" rating in a report on Thursday, April 23rd. Robert W. Baird increased their target price on Synchrony Financial from $83.00 to $86.00 and gave the company an "outperform" rating in a report on Wednesday, April 22nd. Wells Fargo & Company reduced their target price on Synchrony Financial from $100.00 to $95.00 and set an "overweight" rating for the company in a report on Thursday, April 9th. Royal Bank Of Canada dropped their price objective on shares of Synchrony Financial from $91.00 to $85.00 and set a "sector perform" rating for the company in a research note on Wednesday, January 28th. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of Synchrony Financial in a report on Monday, April 20th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $86.32.

Insider Transactions at Synchrony Financial

In related news, insider Darrell Owens sold 3,865 shares of the stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $67.71, for a total value of $261,699.15. Following the completion of the sale, the insider owned 17,432 shares of the company's stock, valued at approximately $1,180,320.72. This trade represents a 18.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Brian J. Sr. Wenzel sold 47,112 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $67.16, for a total value of $3,164,041.92. Following the completion of the sale, the insider directly owned 64,221 shares of the company's stock, valued at approximately $4,313,082.36. This represents a 42.32% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 323,372 shares of company stock valued at $22,080,634. 0.32% of the stock is currently owned by company insiders.

Synchrony Financial Company Profile

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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