Investors Buy Large Volume of Synchrony Financial Put Options (NYSE:SYF)

Key Points

• Investors have purchased a significant number of put options for Synchrony Financial, with 20,113 options traded on Tuesday, marking an increase of approximately 694% compared to the usual volume.
• Insider activity saw notable sales, including a transaction by Darrell Owens who sold 600 shares for $40,770, reducing their ownership by 2.73%.
• The company reported a quarterly EPS of $2.50, exceeding analysts' expectations of $1.72, although revenue was down 1.8% from the previous year to $3.65 billion.

Synchrony Financial (NYSE:SYF - Get Free Report) was the recipient of unusually large options trading activity on Tuesday. Traders bought 20,113 put options on the stock. Thisrepresentsanincreaseofapproximately694% compared to the typical volume of 2,534 put options.

Insider Activity

In other Synchrony Financial news, insider Darrell Owens sold 600 shares of the company's stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $67.95, for a total transaction of $40,770.00. Following the transaction, the insider owned 21,372 shares in the company, valued at approximately $1,452,227.40. This represents a 2.73% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Curtis Howse sold 11,380 shares of the company's stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $65.00, for a total transaction of $739,700.00. Following the transaction, the insider owned 108,062 shares in the company, valued at $7,024,030. The trade was a 9.53% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 61,133 shares of company stock worth $3,817,635. Insiders own 0.33% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in Synchrony Financial by 0.6% in the first quarter. Vanguard Group Inc. now owns 48,420,051 shares of the financial services provider's stock worth $2,563,358,000 after acquiring an additional 281,383 shares during the last quarter. Allianz Asset Management GmbH lifted its stake in Synchrony Financial by 6.5% in the first quarter. Allianz Asset Management GmbH now owns 5,868,022 shares of the financial services provider's stock worth $310,653,000 after acquiring an additional 358,708 shares during the last quarter. Invesco Ltd. lifted its stake in Synchrony Financial by 13.7% in the first quarter. Invesco Ltd. now owns 5,858,422 shares of the financial services provider's stock worth $310,145,000 after acquiring an additional 706,212 shares during the last quarter. Northern Trust Corp lifted its stake in Synchrony Financial by 26.7% in the fourth quarter. Northern Trust Corp now owns 5,183,717 shares of the financial services provider's stock worth $336,942,000 after acquiring an additional 1,093,922 shares during the last quarter. Finally, Southpoint Capital Advisors LP lifted its stake in Synchrony Financial by 25.0% in the first quarter. Southpoint Capital Advisors LP now owns 5,000,000 shares of the financial services provider's stock worth $264,700,000 after acquiring an additional 1,000,000 shares during the last quarter. Hedge funds and other institutional investors own 96.48% of the company's stock.

Synchrony Financial Trading Up 3.7%

SYF stock traded up $2.54 during trading on Tuesday, reaching $72.14. 301,381 shares of the stock were exchanged, compared to its average volume of 4,102,171. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 1.02. The business has a 50 day moving average price of $66.80 and a 200-day moving average price of $60.09. Synchrony Financial has a 1 year low of $40.54 and a 1 year high of $73.76. The firm has a market capitalization of $26.84 billion, a price-to-earnings ratio of 8.76, a P/E/G ratio of 0.71 and a beta of 1.49.

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

Synchrony Financial Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 15th. Investors of record on Tuesday, August 5th will be paid a $0.30 dividend. The ex-dividend date is Tuesday, August 5th. This represents a $1.20 dividend on an annualized basis and a yield of 1.7%. Synchrony Financial's payout ratio is currently 14.56%.

Wall Street Analyst Weigh In

SYF has been the topic of a number of research reports. Rothschild & Co Redburn began coverage on shares of Synchrony Financial in a research note on Friday, August 1st. They issued a "neutral" rating and a $72.00 price objective on the stock. Evercore ISI lowered their price target on shares of Synchrony Financial from $64.00 to $56.00 and set an "outperform" rating on the stock in a report on Wednesday, April 23rd. Wall Street Zen raised shares of Synchrony Financial from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. The Goldman Sachs Group increased their price target on shares of Synchrony Financial from $70.00 to $78.00 and gave the stock a "buy" rating in a report on Wednesday, July 2nd. Finally, Royal Bank Of Canada increased their price target on shares of Synchrony Financial from $75.00 to $78.00 and gave the stock a "sector perform" rating in a report on Wednesday, July 23rd. Eight equities research analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $74.05.

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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