Brokers Set Expectations for Synchrony Financial's Q1 2025 Earnings (NYSE:SYF)

Synchrony Financial (NYSE:SYF - Free Report) - Stock analysts at Zacks Research dropped their Q1 2025 EPS estimates for Synchrony Financial in a research report issued on Wednesday, May 8th. Zacks Research analyst K. Dey now forecasts that the financial services provider will post earnings per share of $1.43 for the quarter, down from their previous estimate of $1.69. The consensus estimate for Synchrony Financial's current full-year earnings is $5.62 per share. Zacks Research also issued estimates for Synchrony Financial's Q3 2025 earnings at $1.77 EPS, Q4 2025 earnings at $1.45 EPS, FY2025 earnings at $6.13 EPS and FY2026 earnings at $7.44 EPS.

Several other analysts have also issued reports on the company. Oppenheimer reissued a "market perform" rating on shares of Synchrony Financial in a report on Wednesday, March 6th. StockNews.com raised shares of Synchrony Financial from a "hold" rating to a "buy" rating in a report on Thursday, April 25th. JPMorgan Chase & Co. boosted their price objective on shares of Synchrony Financial from $42.00 to $46.00 and gave the company a "neutral" rating in a research report on Thursday, April 25th. Wolfe Research raised Synchrony Financial from an "underperform" rating to an "outperform" rating and raised their target price for the company from $36.00 to $50.00 in a report on Thursday, April 4th. Finally, Wells Fargo & Company upped their price objective on Synchrony Financial from $38.00 to $45.00 and gave the stock an "equal weight" rating in a research report on Wednesday, April 10th. One investment analyst has rated the stock with a sell rating, ten have given a hold rating and ten have issued a buy rating to the company. According to MarketBeat.com, Synchrony Financial currently has a consensus rating of "Hold" and a consensus target price of $43.74.

Synchrony Financial Stock Performance

SYF stock traded down $0.37 during trading hours on Friday, hitting $45.73. 3,900,830 shares of the stock were exchanged, compared to its average volume of 4,439,005. Synchrony Financial has a 12 month low of $26.67 and a 12 month high of $46.72. The company has a current ratio of 1.24, a quick ratio of 1.23 and a debt-to-equity ratio of 1.15. The firm has a market capitalization of $18.36 billion, a P/E ratio of 6.56, a P/E/G ratio of 1.12 and a beta of 1.58. The company has a 50-day simple moving average of $42.55 and a two-hundred day simple moving average of $37.85.

Synchrony Financial (NYSE:SYF - Get Free Report) last issued its quarterly earnings data on Wednesday, April 24th. The financial services provider reported $1.18 earnings per share for the quarter, missing the consensus estimate of $1.37 by ($0.19). Synchrony Financial had a net margin of 13.49% and a return on equity of 16.01%. The company had revenue of $5.57 billion during the quarter, compared to the consensus estimate of $4.44 billion. During the same period in the previous year, the company earned $1.35 earnings per share.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of SYF. Mitsubishi UFJ Trust & Banking Corp raised its holdings in Synchrony Financial by 3.1% in the first quarter. Mitsubishi UFJ Trust & Banking Corp now owns 998,350 shares of the financial services provider's stock worth $42,011,000 after buying an additional 30,366 shares during the last quarter. Orion Portfolio Solutions LLC increased its holdings in shares of Synchrony Financial by 16.3% in the 1st quarter. Orion Portfolio Solutions LLC now owns 35,286 shares of the financial services provider's stock worth $1,522,000 after purchasing an additional 4,935 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. raised its stake in shares of Synchrony Financial by 26.0% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 492,315 shares of the financial services provider's stock worth $21,229,000 after purchasing an additional 101,501 shares during the last quarter. State Board of Administration of Florida Retirement System lifted its holdings in shares of Synchrony Financial by 9.4% during the first quarter. State Board of Administration of Florida Retirement System now owns 651,187 shares of the financial services provider's stock valued at $28,079,000 after purchasing an additional 56,145 shares in the last quarter. Finally, Russell Investments Group Ltd. boosted its position in shares of Synchrony Financial by 6.7% during the first quarter. Russell Investments Group Ltd. now owns 1,179,781 shares of the financial services provider's stock valued at $50,826,000 after buying an additional 73,607 shares during the last quarter. 96.48% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Synchrony Financial

In related news, insider Curtis Howse sold 31,562 shares of the stock in a transaction dated Thursday, May 2nd. The stock was sold at an average price of $45.00, for a total transaction of $1,420,290.00. Following the completion of the sale, the insider now directly owns 121,042 shares in the company, valued at approximately $5,446,890. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. In other Synchrony Financial news, insider Brian D. Doubles sold 134,696 shares of the business's stock in a transaction on Tuesday, March 5th. The shares were sold at an average price of $41.26, for a total transaction of $5,557,556.96. Following the transaction, the insider now directly owns 660,353 shares of the company's stock, valued at approximately $27,246,164.78. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Curtis Howse sold 31,562 shares of the business's stock in a transaction dated Thursday, May 2nd. The shares were sold at an average price of $45.00, for a total transaction of $1,420,290.00. Following the transaction, the insider now owns 121,042 shares in the company, valued at approximately $5,446,890. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 172,437 shares of company stock valued at $7,242,432. Insiders own 0.65% of the company's stock.

Synchrony Financial announced that its Board of Directors has initiated a stock buyback program on Wednesday, April 24th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to buy up to 5.5% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's management believes its stock is undervalued.

Synchrony Financial Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 15th. Stockholders of record on Monday, May 6th will be paid a $0.25 dividend. The ex-dividend date of this dividend is Friday, May 3rd. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.19%. Synchrony Financial's dividend payout ratio (DPR) is 14.35%.

About Synchrony Financial

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.