Synchrony Financial (NYSE:SYF) Shares Down 8.1% - Time to Sell?

Key Points

• Synchrony Financial shares fell 8.1% on Wednesday, dropping to as low as $70.91 before closing at $69.40, with trading volume below its average session level.
• Analyst sentiment remains mixed but generally positive: the stock carries a “Moderate Buy” consensus rating and a consensus price target of $86.21, though some firms have recently cut their ratings or targets.
• The company reported better-than-expected quarterly EPS of $2.27, but revenue came in below estimates and was down 7.4% year over year. Synchrony also pays a quarterly dividend of $0.30 and recently announced a share repurchase plan.

Shares of Synchrony Financial (NYSE:SYF - Get Free Report) fell 8.1% during trading on Wednesday . The company traded as low as $70.91 and last traded at $69.40. 3,358,314 shares changed hands during trading, a decline of 20% from the average session volume of 4,186,337 shares. The stock had previously closed at $75.52.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on SYF. Truist Financial raised their price target on shares of Synchrony Financial from $71.00 to $82.00 and gave the company a "hold" rating in a research note on Thursday, April 23rd. Wells Fargo & Company lowered their target price on Synchrony Financial from $100.00 to $95.00 and set an "overweight" rating for the company in a research report on Thursday, April 9th. Robert W. Baird increased their price target on Synchrony Financial from $83.00 to $86.00 and gave the company an "outperform" rating in a research note on Wednesday, April 22nd. Loop Capital initiated coverage on Synchrony Financial in a research note on Friday, May 22nd. They issued a "hold" rating and a $81.00 price objective on the stock. Finally, BTIG Research cut shares of Synchrony Financial from a "buy" rating to a "neutral" rating in a research report on Wednesday, April 22nd. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, Synchrony Financial has a consensus rating of "Moderate Buy" and a consensus target price of $86.21.

Synchrony Financial Stock Down 7.6%

The company has a market cap of $23.48 billion, a P/E ratio of 7.17, a price-to-earnings-growth ratio of 0.67 and a beta of 1.32. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.24 and a quick ratio of 1.24. The stock has a fifty day moving average price of $73.50 and a two-hundred day moving average price of $74.07.

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 business had revenue of $3.70 billion for the quarter, compared to analyst estimates of $3.81 billion. Synchrony Financial had a return on equity of 23.41% and a net margin of 15.80%.Synchrony Financial's quarterly revenue was down 7.4% compared to the same quarter last year. During the same period last year, the company posted $1.89 earnings per share. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. On average, research analysts expect that Synchrony Financial will post 9.34 EPS for the current year.

Synchrony Financial Dividend Announcement

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

Synchrony Financial announced that its board has initiated a share repurchase plan on Tuesday, April 21st that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the financial services provider to repurchase shares of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its stock is undervalued.

Insider Transactions at Synchrony Financial

In other Synchrony Financial news, insider Jonathan S. Mothner sold 51,258 shares of the company's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $71.23, for a total value of $3,651,107.34. Following the transaction, the insider directly owned 132,664 shares in the company, valued at $9,449,656.72. This represents a 27.87% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.36% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Synchrony Financial

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Strategic Investment Advisors MI boosted its holdings in shares of Synchrony Financial by 43.2% during the 3rd quarter. Strategic Investment Advisors MI now owns 68,841 shares of the financial services provider's stock valued at $4,890,000 after buying an additional 20,778 shares in the last quarter. Bank of America Corp DE lifted its holdings in shares of Synchrony Financial by 5.4% during the third quarter. Bank of America Corp DE now owns 14,335,213 shares of the financial services provider's stock valued at $1,018,517,000 after purchasing an additional 739,832 shares during the last quarter. Danske Bank A S bought a new position in Synchrony Financial during the 3rd quarter valued at approximately $34,362,000. KTF Investments LLC purchased a new position in shares of Synchrony Financial in the 4th quarter worth about $3,923,000. Finally, Mackenzie Financial Corp lifted its stake in shares of Synchrony Financial by 23.1% in the third quarter. Mackenzie Financial Corp now owns 601,663 shares of the financial services provider's stock worth $42,748,000 after buying an additional 113,044 shares in the last quarter. 96.48% of the stock is currently owned by institutional investors.

Synchrony Financial Company Profile

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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