VIRGINIA RETIREMENT SYSTEMS ET Al Takes $64.43 Million Position in Synchrony Financial $SYF

Key Points

• The Virginia Retirement Systems acquired a new position in Synchrony Financial worth approximately $64.43 million, owning 0.26% of the company as of the latest filing.
• Synchrony Financial reported a Q3 EPS of $2.86, exceeding expectations of $2.22, along with a revenue of $3.82 billion.
• The company announced a $1 billion share buyback plan, potentially indicating that its stock is perceived as undervalued by management.

VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Synchrony Financial (NYSE:SYF - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm acquired 965,370 shares of the financial services provider's stock, valued at approximately $64,429,000. VIRGINIA RETIREMENT SYSTEMS ET Al owned 0.26% of Synchrony Financial as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Blue Trust Inc. lifted its stake in Synchrony Financial by 5.5% during the second quarter. Blue Trust Inc. now owns 3,168 shares of the financial services provider's stock worth $211,000 after purchasing an additional 166 shares during the period. MAI Capital Management lifted its position in shares of Synchrony Financial by 36.3% during the 1st quarter. MAI Capital Management now owns 627 shares of the financial services provider's stock worth $33,000 after buying an additional 167 shares during the period. Benjamin Edwards Inc. boosted its stake in Synchrony Financial by 0.8% in the 1st quarter. Benjamin Edwards Inc. now owns 25,806 shares of the financial services provider's stock valued at $1,366,000 after buying an additional 197 shares in the last quarter. Horizon Investments LLC boosted its stake in Synchrony Financial by 3.7% in the 1st quarter. Horizon Investments LLC now owns 5,603 shares of the financial services provider's stock valued at $295,000 after buying an additional 198 shares in the last quarter. Finally, Synovus Financial Corp grew its position in Synchrony Financial by 2.6% in the first quarter. Synovus Financial Corp now owns 9,223 shares of the financial services provider's stock valued at $488,000 after acquiring an additional 230 shares during the period. Institutional investors own 96.48% of the company's stock.

Synchrony Financial Price Performance

SYF opened at $71.58 on Friday. The company has a debt-to-equity ratio of 0.91, a current ratio of 1.24 and a quick ratio of 1.24. The stock has a market capitalization of $26.63 billion, a P/E ratio of 7.81, a price-to-earnings-growth ratio of 0.71 and a beta of 1.50. The company's 50 day simple moving average is $73.43 and its 200-day simple moving average is $64.75. Synchrony Financial has a one year low of $40.54 and a one year high of $77.41.

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

Synchrony Financial Dividend Announcement

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

Synchrony Financial declared that its board has authorized a share buyback plan on Wednesday, October 15th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to reacquire up to 3.7% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Wall Street Zen raised Synchrony Financial from a "hold" rating to a "buy" rating in a report on Saturday, September 20th. Wells Fargo & Company lifted their price target on shares of Synchrony Financial from $80.00 to $85.00 and gave the company an "overweight" rating in a report on Thursday. BTIG Research reaffirmed a "buy" rating and set a $100.00 price objective on shares of Synchrony Financial in a research note on Thursday. Barclays boosted their target price on Synchrony Financial from $83.00 to $86.00 and gave the stock an "overweight" rating in a report on Thursday. Finally, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Synchrony Financial in a report on Wednesday, October 8th. One equities research 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 stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $81.38.

Insider Activity

In other Synchrony Financial news, insider Brian J. Sr. Wenzel sold 8,514 shares of the company's stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $70.00, for a total transaction of $595,980.00. Following the transaction, the insider directly owned 68,588 shares in the company, valued at approximately $4,801,160. This represents a 11.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Darrell Owens sold 600 shares of the firm's stock in a transaction dated Monday, August 4th. The shares were sold at an average price of $67.95, for a total transaction of $40,770.00. Following the completion of the transaction, 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 own 0.32% of the company's stock.

Synchrony Financial 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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