Synchrony Financial (NYSE:SYF) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Synchrony Financial carries a consensus analyst rating of “Moderate Buy”, based on coverage from 21 firms. The average 1-year price target is $86.05.
• The company recently beat earnings expectations, reporting $2.27 EPS versus the $2.14 consensus, though revenue of $3.70 billion came in below estimates and was down 7.4% year over year.
• Synchrony also announced a quarterly dividend of $0.30 per share and a stock repurchase program, while insiders have been selling shares in recent months.

Shares of Synchrony Financial (NYSE:SYF - Get Free Report) have earned an average rating of "Moderate Buy" from the twenty-one research firms that are presently covering the firm, MarketBeat reports. Eight analysts have rated the stock with a hold recommendation, twelve have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $86.05.

SYF has been the subject of a number of research reports. Wall Street Zen cut shares of Synchrony Financial from a "buy" rating to a "hold" rating in a research note on Saturday, January 31st. Royal Bank Of Canada cut their price objective on shares of Synchrony Financial from $91.00 to $85.00 and set a "sector perform" rating for the company in a research note on Wednesday, January 28th. Loop Capital initiated coverage on shares of Synchrony Financial in a research note on Friday. They issued a "hold" rating and a $81.00 price objective for the company. Barclays upped their price objective on shares of Synchrony Financial from $82.00 to $93.00 and gave the company an "overweight" rating in a research note on Wednesday, April 22nd. Finally, Robert W. Baird upped their price objective on shares of Synchrony Financial from $83.00 to $86.00 and gave the company an "outperform" rating in a research note on Wednesday, April 22nd.

Synchrony Financial Price Performance

Shares of NYSE:SYF opened at $71.91 on Friday. The company's fifty day moving average price is $71.17 and its 200-day moving average price is $74.82. The firm has a market capitalization of $24.19 billion, a price-to-earnings ratio of 7.44, a PEG ratio of 0.63 and a beta of 1.37. Synchrony Financial has a one year low of $55.67 and a one year high of $88.77. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.24 and a quick ratio of 1.24.

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

Synchrony Financial declared that its board has initiated a stock repurchase 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 purchase shares of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

Synchrony Financial Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Tuesday, May 5th were given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 1.7%. The ex-dividend date was Tuesday, May 5th. Synchrony Financial's dividend payout ratio (DPR) is presently 12.41%.

Insider Buying and Selling at Synchrony Financial

In related news, insider Brian J. Sr. Wenzel sold 47,112 shares of the firm's stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $67.16, for a total transaction of $3,164,041.92. Following the transaction, the insider directly owned 64,221 shares in the company, valued at $4,313,082.36. This trade represents a 42.32% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Bart Schaller sold 12,980 shares of the firm's stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $67.71, for a total value of $878,875.80. Following the transaction, the insider owned 34,035 shares in the company, valued at approximately $2,304,509.85. The trade was a 27.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 374,630 shares of company stock worth $25,731,741 over the last quarter. Company insiders own 0.36% of the company's stock.

Institutional Investors Weigh In On Synchrony Financial

Several institutional investors have recently added to or reduced their stakes in the company. World Investment Advisors boosted its position in Synchrony Financial by 0.6% during the 1st quarter. World Investment Advisors now owns 22,874 shares of the financial services provider's stock valued at $1,556,000 after buying an additional 134 shares during the period. Cullen Frost Bankers Inc. boosted its position in Synchrony Financial by 7.3% during the 4th quarter. Cullen Frost Bankers Inc. now owns 1,995 shares of the financial services provider's stock valued at $166,000 after buying an additional 135 shares during the period. Colonial Trust Co SC boosted its position in Synchrony Financial by 40.2% during the 3rd quarter. Colonial Trust Co SC now owns 474 shares of the financial services provider's stock valued at $34,000 after buying an additional 136 shares during the period. CoreCap Advisors LLC boosted its position in Synchrony Financial by 34.4% during the 4th quarter. CoreCap Advisors LLC now owns 543 shares of the financial services provider's stock valued at $45,000 after buying an additional 139 shares during the period. Finally, United Community Bank boosted its position in Synchrony Financial by 3.4% during the 3rd quarter. United Community Bank now owns 4,469 shares of the financial services provider's stock valued at $318,000 after buying an additional 145 shares during the period. Hedge funds and other 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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