Synchrony Financial (NYSE:SYF) Reaches New 52-Week High - Time to Buy?

Key Points

• Synchrony Financial's stock reached a new **52-week high** of **$73.76** amid increased trading volume, indicating strong market interest.
• Several analysts have upgraded their ratings for Synchrony Financial, with **BTIG Research** setting a target price at **$100.00** and categorizing the stock as a **"buy."**
• The company announced a quarterly dividend of **$0.30 per share**, representing an annual yield of **1.67%**, with a payout ratio of **14.56%**.

Shares of Synchrony Financial (NYSE:SYF - Get Free Report) reached a new 52-week high on Tuesday . The company traded as high as $73.76 and last traded at $73.24, with a volume of 95997 shares trading hands. The stock had previously closed at $72.87.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Wells Fargo & Company raised their price target on Synchrony Financial from $75.00 to $80.00 and gave the company an "overweight" rating in a report on Wednesday, July 23rd. Wall Street Zen upgraded Synchrony Financial from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th. The Goldman Sachs Group increased their price objective on Synchrony Financial from $70.00 to $78.00 and gave the company a "buy" rating in a research report on Wednesday, July 2nd. Evercore ISI decreased their price objective on Synchrony Financial from $64.00 to $56.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 23rd. Finally, Barclays decreased their price objective on Synchrony Financial from $81.00 to $80.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 23rd. Seven research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $74.05.

Synchrony Financial Price Performance

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 firm has a market capitalization of $25.12 billion, a P/E ratio of 8.16, a price-to-earnings-growth ratio of 0.70 and a beta of 1.46. The company has a 50-day moving average price of $65.23 and a 200-day moving average price of $60.20.

Synchrony Financial (NYSE:SYF - Get Free Report) last posted its quarterly earnings results on Tuesday, July 22nd. The financial services provider reported $2.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.72 by $0.78. The business had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.71 billion. Synchrony Financial had a return on equity of 21.34% and a net margin of 14.43%. The firm's revenue was down 1.8% on a year-over-year basis. During the same period last year, the company earned $1.55 EPS. On average, sell-side analysts predict that Synchrony Financial will post 7.67 earnings per share for the current year.

Synchrony Financial Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 15th. Shareholders of record on Tuesday, August 5th will be issued a dividend of $0.30 per share. The ex-dividend date is Tuesday, August 5th. This represents a $1.20 annualized dividend and a yield of 1.8%. Synchrony Financial's payout ratio is currently 14.56%.

Insider Activity

In other Synchrony Financial news, insider Jonathan S. Mothner sold 40,639 shares of Synchrony Financial stock in a transaction dated Monday, May 19th. The stock was sold at an average price of $60.07, for a total transaction of $2,441,184.73. Following the transaction, the insider directly owned 146,628 shares in the company, valued at approximately $8,807,943.96. The trade was a 21.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Curtis Howse sold 11,380 shares of Synchrony Financial stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $65.00, for a total value of $739,700.00. Following the transaction, the insider owned 108,062 shares in the company, valued at approximately $7,024,030. This represents a 9.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.32% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Allspring Global Investments Holdings LLC lifted its holdings in Synchrony Financial by 30.4% during the first quarter. Allspring Global Investments Holdings LLC now owns 73,136 shares of the financial services provider's stock worth $3,895,000 after acquiring an additional 17,061 shares in the last quarter. U.S. Capital Wealth Advisors LLC acquired a new stake in shares of Synchrony Financial in the 1st quarter valued at about $11,506,000. BTC Capital Management Inc. raised its stake in shares of Synchrony Financial by 25.9% in the 1st quarter. BTC Capital Management Inc. now owns 65,835 shares of the financial services provider's stock valued at $3,485,000 after purchasing an additional 13,526 shares during the period. Merit Financial Group LLC raised its stake in shares of Synchrony Financial by 70.2% in the 1st quarter. Merit Financial Group LLC now owns 10,657 shares of the financial services provider's stock valued at $564,000 after purchasing an additional 4,397 shares during the period. Finally, Clarius Group LLC acquired a new stake in shares of Synchrony Financial in the 1st quarter valued at about $242,000. 96.48% of the stock is currently owned by institutional investors.

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.