Synchrony Financial $SYF Shares Sold by TD Asset Management Inc

Key Points

• TD Asset Management cut its stake in Synchrony Financial by 47.9% in the fourth quarter, selling 143,745 shares and leaving it with 156,629 shares worth about $13.1 million.
• Synchrony Financial reported Q1 earnings of $2.27 per share, topping analyst expectations, though revenue of $3.70 billion came in below estimates and fell 7.4% year over year.
• The company also maintained a shareholder-friendly capital return profile, paying a $0.30 quarterly dividend and launching a share repurchase program, while analysts currently rate the stock a Moderate Buy with an average price target of $86.05.

TD Asset Management Inc lessened its holdings in shares of Synchrony Financial (NYSE:SYF - Free Report) by 47.9% during the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 156,629 shares of the financial services provider's stock after selling 143,745 shares during the quarter. TD Asset Management Inc's holdings in Synchrony Financial were worth $13,068,000 as of its most recent filing with the SEC.

Several other hedge funds have also made changes to their positions in the business. Cullen Frost Bankers Inc. raised its holdings in Synchrony Financial by 7.3% in the fourth quarter. Cullen Frost Bankers Inc. now owns 1,995 shares of the financial services provider's stock valued at $166,000 after acquiring an additional 135 shares in the last quarter. Colonial Trust Co SC raised its holdings in Synchrony Financial by 40.2% in 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 in the last quarter. CoreCap Advisors LLC raised its holdings in Synchrony Financial by 34.4% in the fourth quarter. CoreCap Advisors LLC now owns 543 shares of the financial services provider's stock valued at $45,000 after acquiring an additional 139 shares in the last quarter. Choreo LLC raised its holdings in Synchrony Financial by 1.1% in the fourth quarter. Choreo LLC now owns 13,486 shares of the financial services provider's stock valued at $1,137,000 after acquiring an additional 145 shares in the last quarter. Finally, Smartleaf Asset Management LLC raised its holdings in Synchrony Financial by 3.1% in the second quarter. Smartleaf Asset Management LLC now owns 5,027 shares of the financial services provider's stock valued at $333,000 after acquiring an additional 149 shares in the last quarter. Institutional investors and hedge funds own 96.48% of the company's stock.

Synchrony Financial Stock Performance

Shares of Synchrony Financial stock opened at $70.52 on Tuesday. The firm has a market capitalization of $23.72 billion, a P/E ratio of 7.29, a P/E/G ratio of 0.62 and a beta of 1.33. Synchrony Financial has a 52 week low of $59.23 and a 52 week high of $88.77. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.08. The firm's 50 day moving average is $72.38 and its two-hundred day moving average is $74.65.

Synchrony Financial (NYSE:SYF - Get Free Report) last announced 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. The company had revenue of $3.70 billion for the quarter, compared to analyst estimates of $3.81 billion. Synchrony Financial had a net margin of 15.80% and a return on equity of 23.41%. The firm's revenue was down 7.4% on a year-over-year basis. During the same period in the prior year, the firm posted $1.89 earnings per share. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. Research analysts forecast that Synchrony Financial will post 9.29 EPS for the current fiscal year.

Synchrony Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Tuesday, May 5th were given a dividend of $0.30 per share. The ex-dividend date was Tuesday, May 5th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.7%. Synchrony Financial's dividend payout ratio (DPR) is 12.41%.

Synchrony Financial declared that its Board of Directors has initiated a share repurchase program on Tuesday, April 21st that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the financial services provider to purchase shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on SYF. BTIG Research cut shares of Synchrony Financial from a "buy" rating to a "neutral" rating in a report on Wednesday, April 22nd. Loop Capital began coverage on shares of Synchrony Financial in a report on Friday, May 22nd. They issued a "hold" rating and a $81.00 target price on the stock. Wells Fargo & Company reduced their target price on shares of Synchrony Financial from $100.00 to $95.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Truist Financial increased their price target 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, JPMorgan Chase & Co. dropped their price target on shares of Synchrony Financial from $84.00 to $73.00 and set a "neutral" rating on the stock in a research note on Thursday, April 9th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $86.05.

Insider Activity

In other news, insider Jonathan S. Mothner sold 51,258 shares of the firm's 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 transaction, the insider directly owned 132,664 shares in the company, valued at approximately $9,449,656.72. This trade represents a 27.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.36% of the company's stock.

Synchrony Financial 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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