Vanguard Group Inc. Raises Stake in Synchrony Financial (NYSE:SYF)

Key Points

• Vanguard Group Inc. increased its stake in Synchrony Financial by 0.6%, holding approximately 12.72% of the company, valued at around $2.56 billion as of the end of the first quarter.
• Several investments firms have recently adjusted their ratings and price targets for Synchrony Financial, with JMP Securities raising its target from $68 to $77 and BTIG Research upgrading it to a "buy" with a target of $100.
• Synchrony Financial announced a quarterly dividend of $0.30 per share, representing a yield of 1.7%, with the payout date set for August 15th.

Vanguard Group Inc. raised its stake in Synchrony Financial (NYSE:SYF - Free Report) by 0.6% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 48,420,051 shares of the financial services provider's stock after buying an additional 281,383 shares during the quarter. Vanguard Group Inc. owned approximately 12.72% of Synchrony Financial worth $2,563,358,000 at the end of the most recent quarter.

Several other large investors also recently added to or reduced their stakes in SYF. Accredited Wealth Management LLC acquired a new position in shares of Synchrony Financial in the 4th quarter valued at $38,000. CVA Family Office LLC lifted its stake in shares of Synchrony Financial by 355.9% in the 1st quarter. CVA Family Office LLC now owns 693 shares of the financial services provider's stock valued at $37,000 after purchasing an additional 541 shares during the last quarter. TCTC Holdings LLC lifted its stake in shares of Synchrony Financial by 89.0% in the 1st quarter. TCTC Holdings LLC now owns 788 shares of the financial services provider's stock valued at $42,000 after purchasing an additional 371 shares during the last quarter. Rothschild Investment LLC lifted its stake in shares of Synchrony Financial by 55.6% in the 1st quarter. Rothschild Investment LLC now owns 862 shares of the financial services provider's stock valued at $46,000 after purchasing an additional 308 shares during the last quarter. Finally, Golden State Wealth Management LLC lifted its stake in shares of Synchrony Financial by 503.7% in the 1st quarter. Golden State Wealth Management LLC now owns 972 shares of the financial services provider's stock valued at $51,000 after purchasing an additional 811 shares during the last quarter. 96.48% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on SYF shares. JMP Securities upped their price target on Synchrony Financial from $68.00 to $77.00 and gave the company a "market outperform" rating in a research note on Thursday, July 17th. Redburn Atlantic raised Synchrony Financial to a "hold" rating in a research note on Friday, August 1st. BTIG Research raised Synchrony Financial from a "neutral" rating to a "buy" rating and set a $100.00 target price on the stock in a research note on Monday, July 14th. Barclays decreased their target price on Synchrony Financial from $81.00 to $80.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 23rd. Finally, JPMorgan Chase & Co. increased their target price on Synchrony Financial from $52.00 to $80.00 and gave the stock an "overweight" rating in a research note on Friday, July 11th. Eight investment analysts have rated the stock with a hold rating and thirteen have given a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $74.05.

Synchrony Financial Price Performance

SYF stock opened at $69.36 on Friday. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.24 and a quick ratio of 1.24. The firm has a market capitalization of $25.81 billion, a P/E ratio of 8.42, a P/E/G ratio of 0.70 and a beta of 1.49. The business's 50-day moving average is $66.57 and its two-hundred day moving average is $60.24. Synchrony Financial has a 1 year low of $40.54 and a 1 year high of $73.76.

Synchrony Financial (NYSE:SYF - Get Free Report) last issued its earnings results on Tuesday, July 22nd. The financial services provider reported $2.50 earnings per share for the quarter, topping the consensus estimate of $1.72 by $0.78. Synchrony Financial had a return on equity of 21.34% and a net margin of 14.43%. The business had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.71 billion. During the same quarter last year, the company earned $1.55 EPS. The business's quarterly revenue was down 1.8% on a year-over-year basis. Analysts anticipate that Synchrony Financial will post 7.67 earnings per share for the current fiscal year.

Synchrony Financial Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 15th. Stockholders of record on Tuesday, August 5th will be given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend is Tuesday, August 5th. Synchrony Financial's dividend payout ratio (DPR) is 14.56%.

Insiders Place Their Bets

In other news, insider Brian J. Sr. Wenzel sold 8,514 shares of the firm's stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $70.00, for a total transaction of $595,980.00. Following the sale, the insider owned 68,588 shares of the company's stock, valued at approximately $4,801,160. This trade represents a 11.04% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Darrell Owens sold 600 shares of the firm's stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $67.95, for a total value of $40,770.00. Following the sale, the insider directly owned 21,372 shares in the company, valued at $1,452,227.40. This trade represents a 2.73% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 61,133 shares of company stock worth $3,817,635 over the last 90 days. 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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