Synchrony Financial (NYSE:SYF) Raised to "Buy" at Wall Street Zen

Key Points

• Synchrony Financial has been upgraded from a "hold" rating to a "buy" rating by Wall Street Zen, reflecting positive sentiment among analysts.
• JPMorgan and Wells Fargo both raised their price targets for the stock to $80, contributing to an overall consensus price target of $74.17.
• The stock's recent earnings report showed a significant EPS of $2.50, surpassing analysts' expectations, although revenues showed a year-over-year decline of 1.8%.

Synchrony Financial (NYSE:SYF - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday.

A number of other brokerages also recently weighed in on SYF. Cfra Research upgraded shares of Synchrony Financial to a "hold" rating in a research report on Tuesday, April 22nd. Morgan Stanley upped their target price on shares of Synchrony Financial from $48.00 to $70.00 and gave the company an "equal weight" rating in a report on Thursday, July 10th. The Goldman Sachs Group upped their target price on shares of Synchrony Financial from $70.00 to $78.00 and gave the company a "buy" rating in a report on Wednesday, July 2nd. Royal Bank Of Canada upped their target price on shares of Synchrony Financial from $75.00 to $78.00 and gave the company a "sector perform" rating in a report on Wednesday, July 23rd. Finally, JMP Securities upped their target price on shares of Synchrony Financial from $68.00 to $77.00 and gave the company a "market outperform" rating in a report on Thursday, July 17th. Six investment analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company. Based on data from MarketBeat, Synchrony Financial presently has an average rating of "Moderate Buy" and an average target price of $74.17.

Synchrony Financial Stock Performance

Synchrony Financial stock traded down $1.59 during midday trading on Friday, reaching $71.29. 3,923,107 shares of the company traded hands, compared to its average volume of 3,237,697. The firm has a market capitalization of $26.52 billion, a price-to-earnings ratio of 8.65, a price-to-earnings-growth ratio of 0.72 and a beta of 1.46. The business has a 50 day moving average of $64.73 and a two-hundred day moving average of $60.10. Synchrony Financial has a 12 month low of $40.54 and a 12 month high of $73.76. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.24 and a quick ratio of 1.24.

Synchrony Financial (NYSE:SYF - Get Free Report) last issued its quarterly earnings data on Tuesday, July 22nd. The financial services provider reported $2.50 earnings per share for the quarter, beating analysts' consensus estimates of $1.72 by $0.78. The company had revenue of $3.65 billion for the quarter, compared to the consensus estimate of $3.71 billion. Synchrony Financial had a net margin of 14.43% and a return on equity of 21.34%. The firm's revenue for the quarter was down 1.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.55 earnings per share. As a group, research analysts predict that Synchrony Financial will post 7.67 earnings per share for the current year.

Insider Activity at Synchrony Financial

In related news, insider Curtis Howse sold 11,380 shares of the stock in a transaction on 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 sale, the insider directly owned 108,062 shares of the company's stock, valued at $7,024,030. This trade represents a 9.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Jonathan S. Mothner sold 40,639 shares of the stock in a transaction on 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 sale, the insider directly owned 146,628 shares of the company's stock, valued at approximately $8,807,943.96. This represents a 21.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Synchrony Financial

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in shares of Synchrony Financial by 0.6% in the 1st quarter. Vanguard Group Inc. now owns 48,420,051 shares of the financial services provider's stock worth $2,563,358,000 after buying an additional 281,383 shares in the last quarter. Geode Capital Management LLC lifted its holdings in Synchrony Financial by 2.1% in the 4th quarter. Geode Capital Management LLC now owns 9,963,573 shares of the financial services provider's stock valued at $650,678,000 after purchasing an additional 205,641 shares in the last quarter. Allianz Asset Management GmbH lifted its holdings in Synchrony Financial by 6.5% in the 1st quarter. Allianz Asset Management GmbH now owns 5,868,022 shares of the financial services provider's stock valued at $310,653,000 after purchasing an additional 358,708 shares in the last quarter. Invesco Ltd. lifted its holdings in Synchrony Financial by 13.7% in the 1st quarter. Invesco Ltd. now owns 5,858,422 shares of the financial services provider's stock valued at $310,145,000 after purchasing an additional 706,212 shares in the last quarter. Finally, Norges Bank purchased a new position in Synchrony Financial in the 4th quarter valued at about $347,903,000. 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.