Wellington Management Group LLP Buys 42,501 Shares of Synchrony Financial $SYF

Key Points

• Wellington Management more than doubled its Synchrony Financial stake in the second quarter, purchasing 42,501 additional shares for a total of 75,122 shares valued at approximately $5.7 million.
• Analysts maintain a generally positive outlook, with 12 Buy ratings and seven Holds. The stock has a “Moderate Buy” consensus rating and an average price target of $87.78.
• Synchrony reported quarterly EPS of $2.59, exceeding estimates by $0.45, and increased its quarterly dividend from $0.30 to $0.34 per share, equating to a 1.8% annualized yield.

Wellington Management Group LLP boosted its position in shares of Synchrony Financial (NYSE:SYF - Free Report) by 130.3% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 75,122 shares of the financial services provider's stock after purchasing an additional 42,501 shares during the period. Wellington Management Group LLP's holdings in Synchrony Financial were worth $5,713,000 at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Assenagon Asset Management S.A. grew its holdings in shares of Synchrony Financial by 959.4% in the 1st quarter. Assenagon Asset Management S.A. now owns 545,880 shares of the financial services provider's stock valued at $37,131,000 after acquiring an additional 494,354 shares in the last quarter. Basswood Capital Management L.L.C. bought a new stake in Synchrony Financial during the second quarter worth about $45,734,000. Jefferies Financial Group Inc. boosted its position in Synchrony Financial by 701.9% during the fourth quarter. Jefferies Financial Group Inc. now owns 120,996 shares of the financial services provider's stock valued at $10,095,000 after purchasing an additional 105,907 shares during the last quarter. Forsta AP Fonden boosted its position in Synchrony Financial by 7.7% during the fourth quarter. Forsta AP Fonden now owns 228,900 shares of the financial services provider's stock valued at $19,097,000 after purchasing an additional 16,400 shares during the last quarter. Finally, Handelsbanken Fonder AB grew its stake in Synchrony Financial by 25.1% in the fourth quarter. Handelsbanken Fonder AB now owns 130,287 shares of the financial services provider's stock valued at $10,870,000 after purchasing an additional 26,130 shares in the last quarter. 96.48% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several research analysts have weighed in on SYF shares. HSBC boosted their price target on Synchrony Financial from $93.00 to $97.00 and gave the stock a "buy" rating in a research report on Monday, July 13th. Royal Bank Of Canada decreased their target price on shares of Synchrony Financial from $85.00 to $80.00 and set a "sector perform" rating for the company in a research note on Wednesday, July 22nd. Weiss Ratings restated a "buy (b-)" rating on shares of Synchrony Financial in a report on Friday, July 17th. Wolfe Research upped their price target on shares of Synchrony Financial from $85.00 to $90.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 25th. Finally, Robert W. Baird increased their price target on shares of Synchrony Financial from $86.00 to $90.00 and gave the company an "outperform" rating in a research note on Wednesday, July 22nd. Twelve research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $87.78.

Synchrony Financial Price Performance

NYSE:SYF opened at $77.37 on Thursday. Synchrony Financial has a 12-month low of $63.08 and a 12-month high of $88.77. The firm has a market capitalization of $25.18 billion, a price-to-earnings ratio of 7.93, a P/E/G ratio of 0.72 and a beta of 1.32. The stock's 50 day moving average price is $76.90 and its two-hundred day moving average price is $73.46. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 1.08.

Synchrony Financial (NYSE:SYF - Get Free Report) last issued its earnings results on Tuesday, July 21st. The financial services provider reported $2.59 EPS for the quarter, topping the consensus estimate of $2.14 by $0.45. The company had revenue of $3.72 billion during the quarter, compared to the consensus estimate of $3.72 billion. Synchrony Financial had a return on equity of 23.09% and a net margin of 15.44%.During the same period in the previous year, the company posted $2.50 EPS. Synchrony Financial has set its FY 2026 guidance at 9.250-9.500 EPS. On average, analysts anticipate that Synchrony Financial will post 9.37 earnings per share for the current year.

Synchrony Financial Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 17th. Shareholders of record on Wednesday, August 5th were given a dividend of $0.34 per share. This represents a $1.36 dividend on an annualized basis and a yield of 1.8%. This is a positive change from Synchrony Financial's previous quarterly dividend of $0.30. The ex-dividend date of this dividend was Wednesday, August 5th. Synchrony Financial's dividend payout ratio (DPR) is presently 13.93%.

Synchrony Financial Profile

Synchrony Financial NYSE: SYF is a consumer financial services company that provides credit products and financing programs through partnerships with retailers, manufacturers, healthcare providers and other businesses. Its offerings are designed to help consumers finance purchases and manage spending across a range of industries.

The company's products include private-label and co-branded credit cards, promotional financing, installment loans and other consumer payment solutions. Synchrony also provides deposit products and other banking services through Synchrony Bank, including savings accounts, certificates of deposit and money market accounts.

Synchrony primarily serves consumers and business partners in the United States, including customers in retail, home, automotive, healthcare, specialty and other markets.

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