UBS Group Forecasts Strong Price Appreciation for Synchrony Financial (NYSE:SYF) Stock

Key Points

• UBS Group has raised its price target for Synchrony Financial (NYSE:SYF) from $78.00 to $79.00, indicating a potential upside of 12.11% from its previous close.
• Other analysts, including Wells Fargo and Barclays, have also increased their price targets for Synchrony Financial, with a consensus rating of "Moderate Buy" and an average target price of $77.26.
• Synchrony Financial's recent quarterly earnings report showed an earnings per share (EPS) of $2.50, exceeding analyst expectations, although revenue fell 1.8% compared to the previous year.

Synchrony Financial (NYSE:SYF - Get Free Report) had its price target raised by equities researchers at UBS Group from $78.00 to $79.00 in a report released on Tuesday,Benzinga reports. The firm currently has a "neutral" rating on the financial services provider's stock. UBS Group's price target points to a potential upside of 12.11% from the company's previous close.

A number of other research analysts have also recently weighed in on the stock. Wells Fargo & Company lifted their price target on shares of Synchrony Financial from $75.00 to $80.00 and gave the company an "overweight" rating in a research report on Wednesday, July 23rd. Barclays increased their price target on Synchrony Financial from $80.00 to $83.00 and gave the company an "overweight" rating in a report on Monday. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Synchrony Financial in a research report on Saturday, September 27th. JMP Securities raised their target price on Synchrony Financial from $77.00 to $88.00 and gave the company a "market outperform" rating in a report on Thursday, September 25th. Finally, BTIG Research upgraded Synchrony Financial from a "neutral" rating to a "buy" rating and set a $100.00 price target for the company in a report on Monday, July 14th. Twelve equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $77.26.

Synchrony Financial Trading Down 1.3%

Shares of NYSE SYF traded down $0.91 during trading on Tuesday, hitting $70.47. 1,095,494 shares of the company traded hands, compared to its average volume of 3,896,161. The firm has a market capitalization of $26.22 billion, a P/E ratio of 8.55, a P/E/G ratio of 0.72 and a beta of 1.50. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.02. The company has a 50-day moving average price of $73.18 and a 200-day moving average price of $63.78. Synchrony Financial has a 1 year low of $40.54 and a 1 year high of $77.41.

Synchrony Financial (NYSE:SYF - Get Free Report) last posted its quarterly earnings results 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. The firm had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.71 billion. Synchrony Financial had a return on equity of 21.34% and a net margin of 14.43%.The firm's quarterly revenue was down 1.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.55 earnings per share. Synchrony Financial has set its FY 2025 guidance at EPS. On average, equities analysts predict that Synchrony Financial will post 7.67 EPS for the current year.

Insider Buying and Selling at Synchrony Financial

In other news, insider Darrell Owens sold 600 shares of the company's stock in a transaction on Monday, August 4th. The stock was sold at an average price of $67.95, for a total value of $40,770.00. Following the completion of the sale, the insider owned 21,372 shares in the company, valued at $1,452,227.40. This represents a 2.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Brian J. Sr. Wenzel sold 8,514 shares of Synchrony Financial stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $70.00, for a total value of $595,980.00. Following the completion of the transaction, the insider directly owned 68,588 shares in the company, valued at $4,801,160. This represents a 11.04% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.32% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its position in shares of Synchrony Financial by 0.6% during the 1st quarter. Vanguard Group Inc. now owns 48,420,051 shares of the financial services provider's stock valued at $2,563,358,000 after acquiring an additional 281,383 shares during the last quarter. Bank of America Corp DE boosted its stake in shares of Synchrony Financial by 34.6% during the second quarter. Bank of America Corp DE now owns 13,595,381 shares of the financial services provider's stock valued at $907,356,000 after purchasing an additional 3,494,741 shares in the last quarter. Allianz Asset Management GmbH grew its holdings in shares of Synchrony Financial by 6.5% during the first quarter. Allianz Asset Management GmbH now owns 5,868,022 shares of the financial services provider's stock worth $310,653,000 after purchasing an additional 358,708 shares during the last quarter. Invesco Ltd. raised 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 buying an additional 706,212 shares during the last quarter. Finally, Ameriprise Financial Inc. lifted its holdings in Synchrony Financial by 8.3% during the 2nd quarter. Ameriprise Financial Inc. now owns 5,307,077 shares of the financial services provider's stock worth $354,194,000 after buying an additional 406,796 shares during the period. 96.48% of the stock is owned by institutional investors.

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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