Seaport Res Ptn Has Strong Forecast for SYF FY2025 Earnings

Key Points

• Seaport Res Ptn has increased its FY2025 earnings per share estimate for Synchrony Financial from $8.35 to $9.30, significantly above the consensus estimate of $7.67.
• Synchrony Financial reported a quarterly EPS of $2.86, beating expectations by $0.64, and achieved a revenue of $3.82 billion, slightly surpassing estimates.
• The company has authorized a $1 billion share repurchase program, indicating management's belief that the shares are undervalued.

Synchrony Financial (NYSE:SYF - Free Report) - Equities research analysts at Seaport Res Ptn lifted their FY2025 earnings per share estimates for shares of Synchrony Financial in a report issued on Thursday, October 16th. Seaport Res Ptn analyst W. Ryan now forecasts that the financial services provider will post earnings of $9.30 per share for the year, up from their previous estimate of $8.35. The consensus estimate for Synchrony Financial's current full-year earnings is $7.67 per share.

Synchrony Financial (NYSE:SYF - Get Free Report) last issued its quarterly earnings data on Wednesday, October 15th. The financial services provider reported $2.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.22 by $0.64. Synchrony Financial had a return on equity of 22.96% and a net margin of 15.84%.The business had revenue of $3.82 billion during the quarter, compared to analyst estimates of $3.79 billion. During the same period in the previous year, the firm earned $1.94 EPS. Synchrony Financial's quarterly revenue was up .2% compared to the same quarter last year. Synchrony Financial has set its FY 2025 guidance at EPS.

Several other brokerages have also issued reports on SYF. Weiss Ratings reiterated a "buy (b-)" rating on shares of Synchrony Financial in a research report on Wednesday, October 8th. Truist Financial decreased their price objective on Synchrony Financial from $82.00 to $78.00 and set a "hold" rating for the company in a research report on Friday. Rothschild & Co Redburn initiated coverage on Synchrony Financial in a research note on Friday, August 1st. They issued a "neutral" rating and a $72.00 target price on the stock. Evercore ISI boosted their target price on Synchrony Financial from $83.00 to $84.00 and gave the company an "outperform" rating in a research note on Tuesday, September 30th. Finally, Hsbc Global Res upgraded Synchrony Financial from a "hold" rating to a "strong-buy" rating in a research note on Thursday, October 9th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $81.38.

Synchrony Financial Price Performance

Shares of SYF opened at $71.58 on Monday. The company has a debt-to-equity ratio of 0.91, a quick ratio of 1.24 and a current ratio of 1.24. The stock has a 50 day simple moving average of $73.43 and a 200 day simple moving average of $64.88. Synchrony Financial has a 52-week low of $40.54 and a 52-week high of $77.41. The firm has a market capitalization of $26.63 billion, a PE ratio of 7.81, a P/E/G ratio of 0.74 and a beta of 1.50.

Synchrony Financial Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Tuesday, August 5th were given a dividend of $0.30 per share. The ex-dividend date of this dividend was Tuesday, August 5th. This represents a $1.20 annualized dividend and a dividend yield of 1.7%. Synchrony Financial's payout ratio is 13.10%.

Synchrony Financial declared that its board has authorized a share repurchase program on Wednesday, October 15th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the financial services provider to repurchase up to 3.7% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's management believes its shares are undervalued.

Insider Activity at Synchrony Financial

In other Synchrony Financial news, insider Darrell Owens sold 600 shares of the business's stock in a transaction that occurred on Monday, August 4th. The stock was 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 of the company's stock, valued at $1,452,227.40. The trade was a 2.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Brian J. Sr. Wenzel sold 8,514 shares of the business's stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $70.00, for a total value of $595,980.00. Following the transaction, the insider directly owned 68,588 shares in the company, valued at $4,801,160. This trade represents a 11.04% decrease in their position. The disclosure for this sale can be found here. 0.33% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in SYF. Range Financial Group LLC acquired a new position in shares of Synchrony Financial during the 3rd quarter worth approximately $247,000. Ethic Inc. increased its holdings in shares of Synchrony Financial by 23.2% during the 3rd quarter. Ethic Inc. now owns 51,759 shares of the financial services provider's stock worth $3,678,000 after acquiring an additional 9,752 shares during the last quarter. Archford Capital Strategies LLC increased its holdings in shares of Synchrony Financial by 97.0% during the 3rd quarter. Archford Capital Strategies LLC now owns 37,507 shares of the financial services provider's stock worth $2,665,000 after acquiring an additional 18,466 shares during the last quarter. Perigon Wealth Management LLC acquired a new position in shares of Synchrony Financial during the 3rd quarter worth approximately $210,000. Finally, Apollon Wealth Management LLC increased its holdings in shares of Synchrony Financial by 11.6% during the 3rd quarter. Apollon Wealth Management LLC now owns 8,710 shares of the financial services provider's stock worth $619,000 after acquiring an additional 905 shares during the last quarter. Institutional investors and hedge funds own 96.48% of the company's stock.

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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