Synchrony Financial (NYSE:SYF) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately positive: Twelve of 19 covering firms rate Synchrony Financial a buy, while seven recommend holding the stock. The average 12-month price target is $87.89, above the reported $79.30 opening price.
• Synchrony reported quarterly EPS of $2.59, beating estimates of $2.14, on revenue of $3.72 billion. Analysts expect approximately $9.35 in EPS for the current fiscal year, in line with the company’s guidance range.
• The company raised its quarterly dividend to $0.34 per share, equivalent to a 1.7% yield, while institutional investors own 96.48% of outstanding shares. Recent analyst price targets were mixed, with some firms lowering targets and Barclays increasing its target to $93.

Shares of Synchrony Financial (NYSE:SYF - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the nineteen ratings firms that are currently covering the firm, MarketBeat reports. Seven equities research analysts have rated the stock with a hold rating and twelve have given a buy rating to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $87.8889.

Several research firms recently commented on SYF. JPMorgan Chase & Co. decreased their price target on shares of Synchrony Financial from $81.00 to $78.00 and set a "neutral" rating for the company in a report on Monday, July 13th. Barclays increased their target price on shares of Synchrony Financial from $82.00 to $93.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 22nd. UBS Group lifted their target price on shares of Synchrony Financial from $84.00 to $87.00 and gave the company a "neutral" rating in a research note on Monday. Wells Fargo & Company dropped their price target on shares of Synchrony Financial from $95.00 to $88.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 22nd. Finally, Royal Bank Of Canada cut their price objective on Synchrony Financial from $85.00 to $80.00 and set a "sector perform" rating for the company in a report on Wednesday, July 22nd.

Synchrony Financial Price Performance

SYF opened at $79.30 on Thursday. The firm has a market capitalization of $25.80 billion, a P/E ratio of 8.12, a PEG ratio of 0.74 and a beta of 1.32. The stock has a fifty day moving average of $74.19 and a 200-day moving average of $72.64. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 1.08. Synchrony Financial has a 12-month low of $63.08 and a 12-month high of $88.77.

Synchrony Financial (NYSE:SYF - Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $2.59 earnings per share for the quarter, beating the consensus estimate of $2.14 by $0.45. Synchrony Financial had a return on equity of 23.09% and a net margin of 15.44%.The firm had revenue of $3.72 billion for the quarter, compared to analyst estimates of $3.72 billion. During the same period in the previous year, the firm earned $2.50 earnings per share. Synchrony Financial has set its FY 2026 guidance at 9.250-9.500 EPS. Equities analysts forecast that Synchrony Financial will post 9.35 EPS for the current fiscal year.

Synchrony Financial declared that its Board of Directors has authorized a stock repurchase program on Tuesday, April 21st that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the financial services provider to repurchase shares of its stock through open market purchases. Shares repurchase programs are often an indication that the company's board of directors believes its stock is undervalued.

Synchrony Financial Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 17th. Shareholders of record on Wednesday, August 5th will be given a $0.34 dividend. This represents a $1.36 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Wednesday, August 5th. This is an increase from Synchrony Financial's previous quarterly dividend of $0.30. Synchrony Financial's payout ratio is currently 12.30%.

Insider Buying and Selling at Synchrony Financial

In other news, insider Jonathan S. Mothner sold 51,258 shares of Synchrony Financial stock in a transaction dated 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 $9,449,656.72. The trade was a 27.87% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.36% of the stock is owned by company insiders.

Hedge Funds Weigh In On Synchrony Financial

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. FWL Investment Management LLC acquired a new position in shares of Synchrony Financial during the 3rd quarter worth $26,000. Fideuram Asset Management Ireland dac bought a new position in shares of Synchrony Financial during the 4th quarter valued at $29,000. Advisors Asset Management Inc. acquired a new stake in shares of Synchrony Financial in the 4th quarter valued at $29,000. Palisade Asset Management LLC bought a new stake in Synchrony Financial in the third quarter worth $29,000. Finally, Reflection Asset Management bought a new stake in Synchrony Financial in the fourth quarter worth $31,000. Institutional investors own 96.48% of the company's stock.

About Synchrony Financial

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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