Synchrony Financial (NYSE:SYF) Posts Earnings Results

Synchrony Financial (NYSE:SYF - Get Free Report) posted its earnings results on Tuesday. The financial services provider reported $2.50 earnings per share for the quarter, beating analysts' consensus estimates of $1.72 by $0.78, Zacks reports. Synchrony Financial had a return on equity of 21.34% and a net margin of 14.43%. The company had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.71 billion. During the same quarter last year, the company earned $1.55 earnings per share. The company's revenue for the quarter was down 1.8% on a year-over-year basis. Synchrony Financial updated its FY 2025 guidance to EPS.

Synchrony Financial Price Performance

Synchrony Financial stock traded up $0.15 during midday trading on Thursday, hitting $72.23. 2,808,683 shares of the company's stock were exchanged, compared to its average volume of 4,155,418. Synchrony Financial has a 52-week low of $40.54 and a 52-week high of $72.73. The stock has a 50-day moving average price of $63.77 and a two-hundred day moving average price of $59.96. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.25 and a current ratio of 1.24. The company has a market cap of $26.88 billion, a P/E ratio of 8.77, a PEG ratio of 0.74 and a beta of 1.46.

Synchrony Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 15th. Investors of record on Tuesday, August 5th will be given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 1.66%. The ex-dividend date is Tuesday, August 5th. Synchrony Financial's payout ratio is 16.46%.

Insider Activity

In related news, insider Curtis Howse sold 11,380 shares of the business's stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $65.00, for a total transaction of $739,700.00. Following the completion of the transaction, the insider directly owned 108,062 shares in the company, valued at $7,024,030. The trade was a 9.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Jonathan S. Mothner sold 40,639 shares of the business's stock in a transaction dated Monday, May 19th. The stock was sold at an average price of $60.07, for a total value of $2,441,184.73. Following the transaction, the insider owned 146,628 shares of the company's stock, valued at approximately $8,807,943.96. The trade was a 21.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.32% of the stock is owned by insiders.

Institutional Investors Weigh In On Synchrony Financial

Several hedge funds have recently added to or reduced their stakes in SYF. NewEdge Advisors LLC lifted its stake in Synchrony Financial by 8.9% during the first quarter. NewEdge Advisors LLC now owns 8,302 shares of the financial services provider's stock worth $439,000 after purchasing an additional 679 shares during the last quarter. Woodline Partners LP raised its position in Synchrony Financial by 36.2% during the 1st quarter. Woodline Partners LP now owns 35,582 shares of the financial services provider's stock valued at $1,884,000 after purchasing an additional 9,460 shares during the last quarter. Focus Partners Wealth raised its position in Synchrony Financial by 7.7% during the 1st quarter. Focus Partners Wealth now owns 6,406 shares of the financial services provider's stock valued at $339,000 after purchasing an additional 459 shares during the last quarter. Finally, Geneos Wealth Management Inc. raised its position in Synchrony Financial by 337.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 590 shares of the financial services provider's stock valued at $31,000 after purchasing an additional 455 shares during the last quarter. Institutional investors own 96.48% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on SYF. Royal Bank Of Canada raised their target price on Synchrony Financial from $75.00 to $78.00 and gave the company a "sector perform" rating in a report on Wednesday. Wells Fargo & Company increased their price target on Synchrony Financial from $75.00 to $80.00 and gave the company an "overweight" rating in a research report on Wednesday. Morgan Stanley increased their price target on Synchrony Financial from $48.00 to $70.00 and gave the company an "equal weight" rating in a research report on Thursday, July 10th. Evercore ISI decreased their price target on Synchrony Financial from $64.00 to $56.00 and set an "outperform" rating for the company in a research report on Wednesday, April 23rd. Finally, JMP Securities raised their target price on Synchrony Financial from $68.00 to $77.00 and gave the stock a "market outperform" rating in a research report on Thursday, July 17th. Six equities research analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $74.17.

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.