Jonathan Mothner Sells 51,258 Shares of Synchrony Financial (NYSE:SYF) Stock

Key Points

• Insider sale: Synchrony Financial insider Jonathan Mothner sold 51,258 shares at an average price of $71.23, totaling about $3.65 million. The transaction was made under a pre-arranged Rule 10b5-1 trading plan, and he still holds 132,664 shares.
• Recent results: The company reported quarterly EPS of $2.27, beating estimates, though revenue came in below expectations at $3.70 billion. Revenue also declined 7.4% year over year.
• Shareholder returns and outlook: Synchrony paid a quarterly dividend of $0.30 per share, implying a 1.7% yield, and maintains a low payout ratio of 12.41%. Analysts currently rate the stock Moderate Buy with an average target price of $86.32.

Synchrony Financial (NYSE:SYF - Get Free Report) insider Jonathan Mothner sold 51,258 shares of the company's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $71.23, for a total transaction of $3,651,107.34. Following the completion of the sale, the insider directly owned 132,664 shares in the company, valued at approximately $9,449,656.72. The trade was a 27.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Synchrony Financial Stock Performance

Shares of SYF stock traded down $1.68 on Tuesday, reaching $69.37. The stock had a trading volume of 4,305,769 shares, compared to its average volume of 4,391,547. The firm has a market capitalization of $23.33 billion, a price-to-earnings ratio of 7.17, a P/E/G ratio of 0.62 and a beta of 1.37. 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 $55.67 and a 12 month high of $88.77. The firm's 50-day moving average is $70.75 and its two-hundred day moving average is $74.90.

Synchrony Financial (NYSE:SYF - Get Free Report) last released its quarterly earnings results on Tuesday, April 21st. The financial services provider reported $2.27 earnings per share for the quarter, beating the consensus estimate of $2.14 by $0.13. The firm 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%. The business's revenue was down 7.4% on a year-over-year basis. During the same period in the prior year, the firm earned $1.89 EPS. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. On average, research analysts expect that Synchrony Financial will post 9.29 EPS for the current fiscal year.

Synchrony Financial declared that its Board of Directors has approved a stock buyback program on Tuesday, April 21st that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the financial services provider to purchase shares of its stock through open market purchases. Shares buyback programs are typically a sign that the company's management believes its shares are undervalued.

Synchrony Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Tuesday, May 5th were issued a dividend of $0.30 per share. The ex-dividend date of this dividend was Tuesday, May 5th. This represents a $1.20 annualized dividend and a dividend yield of 1.7%. Synchrony Financial's dividend payout ratio (DPR) is currently 12.41%.

Institutional Trading of Synchrony Financial

A number of hedge funds have recently added to or reduced their stakes in SYF. Strategic Investment Advisors MI raised its stake in shares of Synchrony Financial by 43.2% during the third quarter. Strategic Investment Advisors MI now owns 68,841 shares of the financial services provider's stock valued at $4,890,000 after acquiring an additional 20,778 shares during the last quarter. Bank of America Corp DE raised its stake in shares of Synchrony Financial by 5.4% during the third quarter. Bank of America Corp DE now owns 14,335,213 shares of the financial services provider's stock valued at $1,018,517,000 after acquiring an additional 739,832 shares during the last quarter. Federated Hermes Inc. raised its stake in shares of Synchrony Financial by 38.2% during the third quarter. Federated Hermes Inc. now owns 720,016 shares of the financial services provider's stock valued at $51,157,000 after acquiring an additional 198,991 shares during the last quarter. Tredje AP fonden raised its stake in shares of Synchrony Financial by 71.5% during the third quarter. Tredje AP fonden now owns 54,811 shares of the financial services provider's stock valued at $3,894,000 after acquiring an additional 22,856 shares during the last quarter. Finally, Jupiter Asset Management Ltd. bought a new position in Synchrony Financial during the third quarter worth $2,108,000. Institutional investors and hedge funds own 96.48% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have recently commented on SYF. Wells Fargo & Company lowered their target price on shares of Synchrony Financial from $100.00 to $95.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. BTIG Research lowered shares of Synchrony Financial from a "buy" rating to a "neutral" rating in a research report on Wednesday, April 22nd. Truist Financial increased their price target on shares of Synchrony Financial from $71.00 to $82.00 and gave the stock a "hold" rating in a research report on Thursday, April 23rd. Robert W. Baird increased their price target on shares of Synchrony Financial from $83.00 to $86.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 22nd. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of Synchrony Financial in a research report on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $86.32.

Synchrony Financial Company Profile

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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