Synchrony Financial $SYF Stake Decreased by Hosking Partners LLP

Key Points

• Hosking Partners LLP reduced its stake in Synchrony Financial by 4.8% in the fourth quarter, selling 36,684 shares and leaving it with 729,462 shares valued at about $60.9 million.
• Wall Street sentiment is mixed but generally positive: analysts currently rate SYF as a “Moderate Buy,” with an average price target of $86.32, though several firms recently trimmed their targets or downgraded the stock.
• Synchrony Financial reported better-than-expected quarterly EPS of $2.27 on April 21 and also announced a $0.30 quarterly dividend, implying a 1.6% annual yield.

Hosking Partners LLP lessened its holdings in shares of Synchrony Financial (NYSE:SYF - Free Report) by 4.8% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 729,462 shares of the financial services provider's stock after selling 36,684 shares during the period. Synchrony Financial accounts for about 2.1% of Hosking Partners LLP's investment portfolio, making the stock its 13th biggest holding. Hosking Partners LLP owned 0.20% of Synchrony Financial worth $60,859,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in SYF. Westside Investment Management Inc. raised its holdings in Synchrony Financial by 100.0% during the third quarter. Westside Investment Management Inc. now owns 358 shares of the financial services provider's stock worth $25,000 after purchasing an additional 179 shares in the last quarter. FWL Investment Management LLC bought a new stake in Synchrony Financial during the third quarter worth approximately $26,000. Palisade Asset Management LLC bought a new stake in Synchrony Financial during the third quarter worth approximately $29,000. Geneos Wealth Management Inc. raised its holdings in 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. Finally, Colonial Trust Co SC raised its holdings in Synchrony Financial by 40.2% during the third quarter. Colonial Trust Co SC now owns 474 shares of the financial services provider's stock worth $34,000 after purchasing an additional 136 shares in the last quarter. Institutional investors own 96.48% of the company's stock.

Wall Street Analysts Forecast Growth

SYF has been the topic of several research reports. JPMorgan Chase & Co. dropped their price target on Synchrony Financial from $84.00 to $73.00 and set a "neutral" rating on the stock in a report on Thursday, April 9th. Wall Street Zen cut Synchrony Financial from a "buy" rating to a "hold" rating in a report on Saturday, January 31st. Royal Bank Of Canada dropped their price target on Synchrony Financial from $91.00 to $85.00 and set a "sector perform" rating on the stock in a report on Wednesday, January 28th. Compass Point raised Synchrony Financial from a "neutral" rating to a "buy" rating and set a $96.00 price target on the stock in a report on Wednesday, January 28th. Finally, Truist Financial upped their price target on Synchrony Financial from $71.00 to $82.00 and gave the company a "hold" rating in a report on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat, Synchrony Financial has an average rating of "Moderate Buy" and an average target price of $86.32.

Synchrony Financial Price Performance

Shares of NYSE:SYF opened at $73.11 on Monday. The company's fifty day moving average is $70.63 and its two-hundred day moving average is $75.03. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.08. Synchrony Financial has a 12-month low of $55.10 and a 12-month high of $88.77. The company has a market cap of $24.59 billion, a P/E ratio of 7.56, a price-to-earnings-growth ratio of 0.64 and a beta of 1.37.

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. The business had revenue of $3.70 billion for the quarter, compared to analysts' expectations of $3.81 billion. Synchrony Financial had a net margin of 15.80% and a return on equity of 23.41%. Synchrony Financial's revenue was down 7.4% on a year-over-year basis. During the same period in the previous year, the company posted $1.89 EPS. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. Equities analysts expect that Synchrony Financial will post 9.29 earnings per share for the current fiscal year.

Synchrony Financial Announces Dividend

The firm also recently disclosed 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. The ex-dividend date is Tuesday, May 5th. This represents a $1.20 dividend on an annualized basis and a yield of 1.6%. Synchrony Financial's dividend payout ratio is currently 12.41%.

Synchrony Financial announced that its board has initiated a share buyback plan on Tuesday, April 21st that permits the company to buyback $0.00 in shares. This buyback authorization permits the financial services provider to purchase shares of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Transactions at Synchrony Financial

In related news, insider Curtis Howse sold 7,882 shares of the company's stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $67.71, for a total value of $533,690.22. Following the completion of the sale, the insider directly owned 94,873 shares in the company, valued at approximately $6,423,850.83. This represents a 7.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Brian J. Sr. Wenzel sold 47,112 shares of the company's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $67.16, for a total transaction of $3,164,041.92. Following the completion of the sale, the insider owned 64,221 shares of the company's stock, valued at $4,313,082.36. This represents a 42.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 323,372 shares of company stock valued at $22,080,634 in the last three months. 0.32% of the stock is currently owned by company insiders.

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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