Synchrony Financial (NYSE:SYF) Price Target Raised to $85.00 at Wells Fargo & Company

Key Points

• Wells Fargo & Company raised its price target for Synchrony Financial from $80.00 to $85.00, indicating a potential upside of 20.21% from the stock's previous close.
• Analysts have shown positive sentiment towards the stock, with the consensus rating at "Moderate Buy" and a range of price targets from $80.00 to $100.00.
• Synchrony Financial recently announced a $1.00 billion share repurchase program which generally signals that the company's board considers its stock to be undervalued.

Synchrony Financial (NYSE:SYF - Get Free Report) had its price objective increased by stock analysts at Wells Fargo & Company from $80.00 to $85.00 in a research note issued to investors on Thursday,Benzinga reports. The firm currently has an "overweight" rating on the financial services provider's stock. Wells Fargo & Company's price objective would suggest a potential upside of 20.21% from the company's previous close.

Other research analysts have also issued research reports about the stock. Keefe, Bruyette & Woods raised their price objective on shares of Synchrony Financial from $82.00 to $86.00 and gave the company an "outperform" rating in a research note on Wednesday, October 1st. Barclays raised their price objective on shares of Synchrony Financial from $83.00 to $86.00 and gave the company an "overweight" rating in a research note on Thursday. Bank of America raised their price objective on shares of Synchrony Financial from $75.00 to $80.00 and gave the company a "buy" rating in a research note on Thursday, September 11th. BTIG Research reiterated a "buy" rating and set a $100.00 price objective on shares of Synchrony Financial in a research note on Thursday. Finally, Redburn Atlantic upgraded shares of Synchrony Financial to a "hold" rating in a research note on Friday, August 1st. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $77.85.

Synchrony Financial Stock Performance

Shares of NYSE:SYF traded down $1.61 during trading hours on Thursday, hitting $70.71. The stock had a trading volume of 218,933 shares, compared to its average volume of 3,901,404. The stock's fifty day simple moving average is $73.35 and its 200 day simple moving average is $64.44. Synchrony Financial has a 1-year low of $40.54 and a 1-year high of $77.41. The firm has a market capitalization of $26.31 billion, a price-to-earnings ratio of 8.56, a PEG ratio of 0.72 and a beta of 1.50. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.24 and a current ratio of 1.24.

Synchrony Financial (NYSE:SYF - Get Free Report) last announced its quarterly earnings results on Wednesday, October 15th. The financial services provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.22 by $0.64. Synchrony Financial had a net margin of 14.43% and a return on equity of 21.34%. The company had revenue of $3.82 billion for the quarter, compared to analyst estimates of $3.79 billion. During the same quarter last year, the business earned $1.94 earnings per share. Synchrony Financial's revenue was up .2% compared to the same quarter last year. Synchrony Financial has set its FY 2025 guidance at EPS. Sell-side analysts anticipate that Synchrony Financial will post 7.67 earnings per share for the current fiscal year.

Synchrony Financial declared that its board has approved a share repurchase program on Wednesday, October 15th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the financial services provider to reacquire up to 3.7% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's board believes its stock is undervalued.

Insiders Place Their Bets

In other Synchrony Financial news, insider Brian J. Sr. Wenzel sold 8,514 shares of Synchrony Financial 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 sale, the insider owned 68,588 shares of the company's stock, valued at $4,801,160. This trade represents a 11.04% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Darrell Owens sold 600 shares of Synchrony Financial stock in a transaction 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 sale, the insider directly owned 21,372 shares of the company's stock, valued at $1,452,227.40. This trade represents a 2.73% decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.32% of the company's stock.

Institutional Investors Weigh In On Synchrony Financial

A number of institutional investors have recently modified their holdings of the stock. Parkside Financial Bank & Trust boosted its stake in shares of Synchrony Financial by 15.1% during the 2nd quarter. Parkside Financial Bank & Trust now owns 1,106 shares of the financial services provider's stock valued at $74,000 after buying an additional 145 shares during the period. Smartleaf Asset Management LLC raised its holdings in shares of Synchrony Financial by 3.1% during the 2nd quarter. Smartleaf Asset Management LLC now owns 5,027 shares of the financial services provider's stock valued at $333,000 after purchasing an additional 149 shares in the last quarter. Blue Trust Inc. raised its holdings in shares of Synchrony Financial by 5.5% during the 2nd quarter. Blue Trust Inc. now owns 3,168 shares of the financial services provider's stock valued at $211,000 after purchasing an additional 166 shares in the last quarter. MAI Capital Management raised its holdings in shares of Synchrony Financial by 36.3% during the 1st quarter. MAI Capital Management now owns 627 shares of the financial services provider's stock valued at $33,000 after purchasing an additional 167 shares in the last quarter. Finally, Steward Partners Investment Advisory LLC raised its holdings in shares of Synchrony Financial by 6.0% during the 2nd quarter. Steward Partners Investment Advisory LLC now owns 3,240 shares of the financial services provider's stock valued at $216,000 after purchasing an additional 183 shares in the last quarter. Institutional investors and hedge funds own 96.48% of the company's stock.

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.

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