Synchrony Financial (NYSE:SYF) Given New $86.00 Price Target at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods raised the price target for Synchrony Financial from $82.00 to $86.00, indicating a potential upside of 21.99% from the current stock price.
• The company reported a Q2 EPS of $2.50, surpassing analysts' expectations of $1.72, although its revenue fell short of forecasts.
• Institutional investors have been actively trading, with notable increases in holdings from firms like Bank of America and Norges Bank, indicating strong investor interest.

Synchrony Financial (NYSE:SYF - Get Free Report) had its price target upped by equities research analysts at Keefe, Bruyette & Woods from $82.00 to $86.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm presently has an "outperform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' price objective points to a potential upside of 21.99% from the company's current price.

A number of other analysts also recently issued reports on SYF. Truist Financial lifted their price target on shares of Synchrony Financial from $68.00 to $76.00 and gave the company a "hold" rating in a report on Thursday, July 24th. JPMorgan Chase & Co. lifted their price target on shares of Synchrony Financial from $52.00 to $80.00 and gave the stock an "overweight" rating in a report on Friday, July 11th. Royal Bank Of Canada upped their target price on Synchrony Financial from $75.00 to $78.00 and gave the company a "sector perform" rating in a research report on Wednesday, July 23rd. Wells Fargo & Company upped their price objective on shares of Synchrony Financial from $75.00 to $80.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 23rd. Finally, Morgan Stanley raised their target price on Synchrony Financial from $72.00 to $82.00 and gave the company an "equal weight" rating in a research report on Monday. Twelve investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, Synchrony Financial has a consensus rating of "Moderate Buy" and a consensus target price of $76.68.

Synchrony Financial Trading Down 0.8%

Shares of Synchrony Financial stock traded down $0.55 during midday trading on Wednesday, reaching $70.50. 1,183,896 shares of the company's stock traded hands, compared to its average volume of 3,907,238. The stock has a 50 day moving average of $73.32 and a 200-day moving average of $63.24. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.24 and a current ratio of 1.24. The company has a market cap of $26.23 billion, a PE ratio of 8.56, a price-to-earnings-growth ratio of 0.74 and a beta of 1.49. Synchrony Financial has a 12 month low of $40.54 and a 12 month high of $77.41.

Synchrony Financial (NYSE:SYF - Get Free Report) last released its earnings results on Tuesday, July 22nd. The financial services provider reported $2.50 EPS for the quarter, topping analysts' consensus estimates of $1.72 by $0.78. Synchrony Financial had a return on equity of 21.34% and a net margin of 14.43%.The firm had revenue of $3.65 billion for the quarter, compared to analysts' expectations of $3.71 billion. During the same period in the prior year, the firm posted $1.55 earnings per share. The company's quarterly revenue was down 1.8% on a year-over-year basis. Synchrony Financial has set its FY 2025 guidance at EPS. As a group, equities analysts expect that Synchrony Financial will post 7.67 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Darrell Owens sold 600 shares of the company's stock in a transaction that occurred on Monday, August 4th. The shares were 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 approximately $1,452,227.40. This represents a 2.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Brian J. Sr. Wenzel sold 8,514 shares of the firm's stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $70.00, for a total transaction of $595,980.00. Following the completion of the transaction, the insider directly owned 68,588 shares in the company, valued at approximately $4,801,160. This 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 company insiders.

Institutional Trading of Synchrony Financial

Large investors have recently added to or reduced their stakes in the business. Norges Bank bought a new position in Synchrony Financial during the second quarter worth $299,360,000. Bank of America Corp DE boosted its stake in shares of Synchrony Financial by 34.6% in the 2nd quarter. Bank of America Corp DE now owns 13,595,381 shares of the financial services provider's stock valued at $907,356,000 after purchasing an additional 3,494,741 shares during the last quarter. Nuveen LLC bought a new position in shares of Synchrony Financial in the 1st quarter worth $175,294,000. Massachusetts Financial Services Co. MA raised its position in shares of Synchrony Financial by 755.7% in the 1st quarter. Massachusetts Financial Services Co. MA now owns 2,179,984 shares of the financial services provider's stock valued at $115,408,000 after acquiring an additional 1,925,217 shares during the period. Finally, Assetmark Inc. grew its holdings in shares of Synchrony Financial by 129.5% in the 1st quarter. Assetmark Inc. now owns 3,051,160 shares of the financial services provider's stock valued at $161,528,000 after buying an additional 1,721,891 shares during the period. 96.48% of the stock is owned by institutional investors.

About Synchrony Financial

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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