Synchrony Financial (NYSE:SYF) Coverage Initiated at Loop Capital

Key Points

• Loop Capital initiated coverage on Synchrony Financial with a hold rating and an $81 price target, implying about 12.5% upside from the stock’s current level.
• Recent analyst sentiment is mixed but leans positive overall: the stock has a consensus Moderate Buy rating and an average target price of $86.05.
• Synchrony reported Q1 earnings of $2.27 per share, beating estimates, but revenue of $3.70 billion came in below expectations and was down 7.4% from a year earlier.

Research analysts at Loop Capital initiated coverage on shares of Synchrony Financial (NYSE:SYF - Get Free Report) in a research note issued to investors on Friday. The brokerage set a "hold" rating and a $81.00 price target on the financial services provider's stock. Loop Capital's price target indicates a potential upside of 12.52% from the company's current price.

Several other equities analysts have also recently issued reports on SYF. Royal Bank Of Canada decreased their price target on Synchrony Financial from $91.00 to $85.00 and set a "sector perform" rating on the stock in a report on Wednesday, January 28th. Robert W. Baird raised their price target on Synchrony Financial from $83.00 to $86.00 and gave the company an "outperform" rating in a report on Wednesday, April 22nd. Wells Fargo & Company reduced their target price on Synchrony Financial from $100.00 to $95.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Compass Point upgraded Synchrony Financial from a "neutral" rating to a "buy" rating and set a $96.00 target price on the stock in a report on Wednesday, January 28th. Finally, Truist Financial raised their target price on Synchrony Financial from $71.00 to $82.00 and gave the stock a "hold" rating in a report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $86.05.

Synchrony Financial Stock Performance

Synchrony Financial stock opened at $71.99 on Friday. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.24 and a quick ratio of 1.24. The stock has a fifty day moving average price of $71.04 and a two-hundred day moving average price of $74.84. Synchrony Financial has a 52-week low of $55.67 and a 52-week high of $88.77. The firm has a market capitalization of $24.21 billion, a P/E ratio of 7.44, a P/E/G ratio of 0.63 and a beta of 1.37.

Synchrony Financial (NYSE:SYF - Get Free Report) last announced its earnings results on Tuesday, April 21st. The financial services provider reported $2.27 earnings per share for the quarter, beating analysts' consensus estimates of $2.14 by $0.13. Synchrony Financial had a return on equity of 23.41% and a net margin of 15.80%.The company had revenue of $3.70 billion during the quarter, compared to analyst estimates of $3.81 billion. During the same period last year, the company posted $1.89 earnings per share. The firm's quarterly revenue was down 7.4% compared to the same quarter last year. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. As a group, analysts anticipate that Synchrony Financial will post 9.29 EPS for the current fiscal year.

Synchrony Financial declared that its board has authorized a stock buyback program on Tuesday, April 21st that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the financial services provider to reacquire shares of its stock through open market purchases. Shares buyback programs are generally a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Synchrony Financial

In other news, insider Jonathan S. Mothner sold 51,258 shares of the company's stock in a transaction on Friday, May 15th. The stock was 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. This represents a 27.87% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Alberto Casellas sold 14,399 shares of the company's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $67.71, for a total value of $974,956.29. Following the sale, the insider owned 50,331 shares of the company's stock, valued at approximately $3,407,912.01. This represents a 22.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 374,630 shares of company stock worth $25,731,741 in the last three months. 0.36% of the stock is owned by insiders.

Hedge Funds Weigh In On Synchrony Financial

Institutional investors and hedge funds have recently bought and sold shares of the company. Westside Investment Management Inc. increased its holdings in Synchrony Financial by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 358 shares of the financial services provider's stock worth $25,000 after purchasing an additional 179 shares in the last quarter. FWL Investment Management LLC acquired a new position in Synchrony Financial in the 3rd quarter worth about $26,000. Fideuram Asset Management Ireland dac acquired a new position in Synchrony Financial in the 4th quarter worth about $29,000. Advisors Asset Management Inc. acquired a new position in Synchrony Financial in the 4th quarter worth about $29,000. Finally, Palisade Asset Management LLC acquired a new position in Synchrony Financial in the 3rd quarter worth about $29,000. Institutional investors and hedge funds own 96.48% of the company's stock.

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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