Synchrony Financial (NYSE:SYF) Stock Price Crosses Above 200 Day Moving Average - Here's Why

Key Points

• Synchrony Financial shares crossed above their 200-day moving average, reaching $75.38 compared with the $73.90 technical benchmark, with roughly 3.1 million shares traded.
• The company beat quarterly earnings expectations, reporting $2.68 EPS versus the $2.42 consensus and revenue of $3.82 billion. Analysts maintain a “Moderate Buy” consensus, with an average price target of $87.83.
• Synchrony declared a quarterly dividend of $0.34 per share, equivalent to a $1.36 annualized payout and a 1.8% yield; institutional investors own 96.48% of the stock.

Synchrony Financial (NYSE:SYF - Get Free Report) crossed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $73.90 and traded as high as $75.38. Synchrony Financial shares last traded at $74.8560, with a volume of 3,056,187 shares changing hands.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on SYF shares. Wolfe Research increased their target price on shares of Synchrony Financial from $85.00 to $90.00 and gave the stock an "outperform" rating in a report on Tuesday, August 25th. Jefferies Financial Group reissued a "buy" rating and set a $103.00 price target on shares of Synchrony Financial in a research report on Tuesday, October 20th. Morgan Stanley decreased their price target on shares of Synchrony Financial from $84.00 to $83.00 and set an "equal weight" rating for the company in a report on Monday, October 12th. Evercore cut shares of Synchrony Financial from an "outperform" rating to a "hold" rating and set a $78.00 price objective for the company. in a research report on Wednesday, October 21st. Finally, Barclays upped their price objective on shares of Synchrony Financial from $93.00 to $94.00 and gave the company an "overweight" rating in a research report on Wednesday, October 21st. Ten investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Synchrony Financial has a consensus rating of "Moderate Buy" and an average target price of $87.83.

Synchrony Financial Price Performance

The company has a market cap of $24.36 billion, a price-to-earnings ratio of 7.81, a PEG ratio of 0.84 and a beta of 1.35. The company has a quick ratio of 1.23, a current ratio of 1.23 and a debt-to-equity ratio of 1.15. The company's fifty day moving average price is $75.45 and its two-hundred day moving average price is $73.90.

Synchrony Financial (NYSE:SYF - Get Free Report) last issued its quarterly earnings data on Tuesday, October 20th. The financial services provider reported $2.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.42 by $0.26. Synchrony Financial had a net margin of 14.59% and a return on equity of 22.26%. The company had revenue of $3.82 billion during the quarter, compared to the consensus estimate of $3.81 billion. During the same quarter in the prior year, the firm earned $2.86 earnings per share. On average, equities research analysts forecast that Synchrony Financial will post 9.62 EPS for the current fiscal year.

Synchrony Financial Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, November 16th. Investors of record on Thursday, November 5th will be paid a $0.34 dividend. The ex-dividend date of this dividend is Thursday, November 5th. This represents a $1.36 dividend on an annualized basis and a yield of 1.8%. Synchrony Financial's dividend payout ratio is presently 14.20%.

Hedge Funds Weigh In On Synchrony Financial

Large investors have recently added to or reduced their stakes in the company. Bank of America Corp DE bought a new position in shares of Synchrony Financial during the second quarter worth about $1,122,961,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Synchrony Financial in the 2nd quarter valued at approximately $22,798,000. Raiffeisen Bank International AG lifted its stake in Synchrony Financial by 7,984.0% in the 2nd quarter. Raiffeisen Bank International AG now owns 23,282 shares of the financial services provider's stock valued at $1,825,000 after acquiring an additional 22,994 shares in the last quarter. Basswood Capital Management L.L.C. bought a new stake in Synchrony Financial in the 2nd quarter valued at approximately $45,734,000. Finally, Munich Reinsurance Co Stock Corp in Munich lifted its stake in Synchrony Financial by 243.6% in the 2nd quarter. Munich Reinsurance Co Stock Corp in Munich now owns 258,224 shares of the financial services provider's stock valued at $19,638,000 after acquiring an additional 183,076 shares in the last quarter. Institutional investors own 96.48% of the company's stock.

Synchrony Financial Company Profile

Synchrony Financial NYSE: SYF is a consumer financial services company that provides private-label credit cards, co-branded credit cards and promotional financing programs. Its financing products are offered through retailers, manufacturers, healthcare providers and other businesses, helping consumers pay for purchases over time.

The company serves a range of industries, including digital commerce, home improvement, furniture, automotive, healthcare, jewelry, apparel, electronics and specialty retail.

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