Synchrony Financial (NYSE:SYF) Upgraded to Buy at HSBC

Key Points

• HSBC upgraded Synchrony Financial from a "hold" rating to a "buy" rating, with a new price target of $81.00, reflecting a potential upside of 14.12% from the stock's previous close.
• Thirteen analysts currently rate the stock as a Buy, while nine have a Hold rating, resulting in a consensus rating of "Moderate Buy" and a price target of $77.45.
• In its last quarterly earnings report, Synchrony Financial reported $2.50 earnings per share, significantly exceeding analysts' expectations of $1.72, despite a slight decline in revenue year-over-year.

Synchrony Financial (NYSE:SYF - Get Free Report) was upgraded by investment analysts at HSBC from a "hold" rating to a "buy" rating in a research report issued on Friday, Marketbeat reports. The firm presently has a $81.00 price objective on the financial services provider's stock, up from their prior price objective of $73.00. HSBC's target price indicates a potential upside of 14.12% from the stock's previous close.

A number of other brokerages also recently issued reports on SYF. UBS Group increased their price target on Synchrony Financial from $78.00 to $79.00 and gave the stock a "neutral" rating in a research report on Tuesday. Barclays raised their price target on Synchrony Financial from $80.00 to $83.00 and gave the stock an "overweight" rating in a research report on Monday. Rothschild & Co Redburn started coverage on shares of Synchrony Financial in a research report on Friday, August 1st. They set a "neutral" rating and a $72.00 price objective for the company. The Goldman Sachs Group increased their price objective on shares of Synchrony Financial from $70.00 to $78.00 and gave the stock a "buy" rating in a research note on Wednesday, July 2nd. Finally, Evercore ISI boosted their target price on shares of Synchrony Financial from $83.00 to $84.00 and gave the company an "outperform" rating in a research report on Tuesday, September 30th. Thirteen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $77.45.

Synchrony Financial Trading Up 0.0%

Shares of Synchrony Financial stock opened at $70.98 on Friday. 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 50-day moving average of $73.21 and a 200-day moving average of $63.99. Synchrony Financial has a 52-week low of $40.54 and a 52-week high of $77.41. The stock has a market cap of $26.41 billion, a PE ratio of 8.61, a PEG ratio of 0.71 and a beta of 1.50.

Synchrony Financial (NYSE:SYF - Get Free Report) last posted its quarterly earnings data on Tuesday, July 22nd. The financial services provider reported $2.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.72 by $0.78. Synchrony Financial had a net margin of 14.43% and a return on equity of 21.34%. The firm had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.71 billion. During the same quarter in the previous year, the firm posted $1.55 EPS. The business's revenue for the quarter was down 1.8% compared to the same quarter last year. Synchrony Financial has set its FY 2025 guidance at EPS. As a group, sell-side analysts forecast that Synchrony Financial will post 7.67 EPS for the current year.

Insider Activity

In other Synchrony Financial news, 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 value of $40,770.00. Following the completion of the sale, the insider directly owned 21,372 shares of the company's stock, valued at approximately $1,452,227.40. The trade was a 2.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Brian J. Sr. Wenzel sold 8,514 shares of the business's stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $70.00, for a total value of $595,980.00. Following the completion of the sale, the insider directly owned 68,588 shares of the company's stock, valued at $4,801,160. The trade was a 11.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 0.32% of the company's stock.

Institutional Trading of Synchrony Financial

Hedge funds and other institutional investors have recently bought and sold shares of the business. Parkside Financial Bank & Trust lifted its holdings in shares of Synchrony Financial by 15.1% in the second quarter. Parkside Financial Bank & Trust now owns 1,106 shares of the financial services provider's stock valued at $74,000 after purchasing an additional 145 shares in the last quarter. Smartleaf Asset Management LLC grew its holdings in shares of Synchrony Financial by 3.1% in the second quarter. Smartleaf Asset Management LLC now owns 5,027 shares of the financial services provider's stock valued at $333,000 after acquiring an additional 149 shares in the last quarter. Blue Trust Inc. increased its position in shares of Synchrony Financial by 5.5% during the second quarter. Blue Trust Inc. now owns 3,168 shares of the financial services provider's stock valued at $211,000 after acquiring an additional 166 shares during the last quarter. MAI Capital Management lifted its holdings in Synchrony Financial by 36.3% during the first quarter. MAI Capital Management now owns 627 shares of the financial services provider's stock worth $33,000 after acquiring an additional 167 shares during the period. Finally, Steward Partners Investment Advisory LLC boosted its position in Synchrony Financial by 6.0% in the second quarter. Steward Partners Investment Advisory LLC now owns 3,240 shares of the financial services provider's stock worth $216,000 after purchasing an additional 183 shares during the last quarter. Institutional investors own 96.48% of the company's stock.

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.

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