Synchrony Financial (NYSE:SYF) - Stock analysts at Jefferies Financial Group reduced their Q3 2021 earnings per share estimates for shares of Synchrony Financial in a research note issued on Tuesday, July 20th. Jefferies Financial Group analyst J. Hecht now forecasts that the financial services provider will post earnings of $1.34 per share for the quarter, down from their previous estimate of $1.45. Jefferies Financial Group also issued estimates for Synchrony Financial's Q4 2021 earnings at $1.22 EPS, Q1 2022 earnings at $1.44 EPS, Q2 2022 earnings at $1.14 EPS, Q3 2022 earnings at $1.58 EPS, Q4 2022 earnings at $1.41 EPS and FY2022 earnings at $5.57 EPS. Synchrony Financial (NYSE:SYF) last posted its quarterly earnings results on Monday, July 19th. The financial services provider reported $2.12 earnings per share for the quarter, topping analysts' consensus estimates of $1.47 by $0.65. Synchrony Financial had a net margin of 21.76% and a return on equity of 27.59%. During the same quarter last year, the firm earned $0.06 EPS.
Several other equities analysts have also weighed in on the stock. started coverage on shares of Synchrony Financial in a report on Friday, July 9th. They issued a "neutral" rating and a $51.00 target price on the stock. Wells Fargo & Company boosted their target price on shares of Synchrony Financial from $48.00 to $55.00 and gave the company an "overweight" rating in a report on Monday, July 12th. JPMorgan Chase & Co. decreased their price objective on shares of Synchrony Financial from $49.00 to $48.00 and set an "overweight" rating on the stock in a report on Thursday, April 15th. They noted that the move was a valuation call. Oppenheimer restated a "market perform" rating on shares of Synchrony Financial in a report on Tuesday, April 20th. Finally, JMP Securities upped their price objective on shares of Synchrony Financial from $43.00 to $55.00 and gave the stock a "market outperform" rating in a report on Monday, July 19th. Four equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company's stock. The stock presently has an average rating of "Buy" and an average target price of $52.57.
SYF opened at $46.51 on Friday. The firm has a market capitalization of $27.05 billion, a price-to-earnings ratio of 8.29, a PEG ratio of 0.38 and a beta of 1.82. Synchrony Financial has a twelve month low of $21.90 and a twelve month high of $50.96. The stock's 50-day simple moving average is $47.98. The company has a quick ratio of 1.24, a current ratio of 1.25 and a debt-to-equity ratio of 1.00.
A number of large investors have recently modified their holdings of the stock. Norges Bank acquired a new position in Synchrony Financial during the fourth quarter worth about $231,301,000. Morgan Stanley raised its position in shares of Synchrony Financial by 186.5% during the 1st quarter. Morgan Stanley now owns 6,258,837 shares of the financial services provider's stock worth $254,485,000 after purchasing an additional 4,074,603 shares during the last quarter. BlackRock Inc. raised its position in shares of Synchrony Financial by 8.4% during the 1st quarter. BlackRock Inc. now owns 44,786,257 shares of the financial services provider's stock worth $1,821,008,000 after purchasing an additional 3,460,644 shares during the last quarter. Nuveen Asset Management LLC raised its position in shares of Synchrony Financial by 111.3% during the 1st quarter. Nuveen Asset Management LLC now owns 6,398,757 shares of the financial services provider's stock worth $260,174,000 after purchasing an additional 3,369,851 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its holdings in Synchrony Financial by 51.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 8,927,426 shares of the financial services provider's stock valued at $362,989,000 after acquiring an additional 3,045,265 shares during the last quarter. Hedge funds and other institutional investors own 90.81% of the company's stock.
In other Synchrony Financial news, insider Carol Juel sold 8,708 shares of the stock in a transaction that occurred on Monday, June 28th. The shares were sold at an average price of $49.63, for a total value of $432,178.04. The sale was disclosed in a filing with the SEC, which is available through this link. 0.45% of the stock is owned by corporate insiders.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 12th. Investors of record on Monday, August 2nd will be paid a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a yield of 1.89%. The ex-dividend date is Friday, July 30th. Synchrony Financial's payout ratio is currently 33.85%.
Synchrony Financial announced that its board has approved a share repurchase program on Tuesday, May 25th that permits the company to buyback $2.90 billion in shares. This buyback authorization permits the financial services provider to purchase up to 10.7% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's leadership believes its stock is undervalued.
About Synchrony Financial
Synchrony Financial operates as a consumer financial services company in the United States. It provides a range of specialized financing programs and consumer banking products to digital, retail, home, auto, travel, health, and pet industries. The company also offers private label credit cards, dual cards, general purpose co-branded credit cards, and small and medium-sized business credit products; and promotional financing for consumer purchases, such as private label credit cards, dual cards, and installment loans.
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