Zacks Research Has Optimistic Outlook of SYF FY2025 Earnings

Key Points

• Zacks Research has raised its FY2025 EPS estimate for Synchrony Financial from $7.57 to $8.15, indicating a positive outlook for the financial services provider.
• Royal Bank of Canada increased their price target for Synchrony Financial from $75.00 to $78.00, while other brokerages have varied their price targets between $56.00 and $81.00.
• Synchrony Financial announced a quarterly dividend of $0.30 per share, reflecting a 1.7% yield with a consistent payout ratio of 14.56%.

Synchrony Financial (NYSE:SYF - Free Report) - Investment analysts at Zacks Research boosted their FY2025 earnings per share (EPS) estimates for Synchrony Financial in a report released on Monday, August 4th. Zacks Research analyst K. Dey now anticipates that the financial services provider will post earnings per share of $8.15 for the year, up from their prior forecast of $7.57. The consensus estimate for Synchrony Financial's current full-year earnings is $7.67 per share. Zacks Research also issued estimates for Synchrony Financial's Q4 2026 earnings at $2.26 EPS, FY2026 earnings at $9.00 EPS, Q1 2027 earnings at $2.50 EPS and FY2027 earnings at $10.09 EPS.

Other analysts have also issued research reports about the company. Truist Financial upped their target price on Synchrony Financial from $68.00 to $76.00 and gave the stock a "hold" rating in a research note on Thursday, July 24th. Evercore ISI lowered their price target on shares of Synchrony Financial from $64.00 to $56.00 and set an "outperform" rating for the company in a research note on Wednesday, April 23rd. JPMorgan Chase & Co. raised their price objective on Synchrony Financial from $52.00 to $80.00 and gave the company an "overweight" rating in a research note on Friday, July 11th. Barclays lowered their target price on Synchrony Financial from $81.00 to $80.00 and set an "overweight" rating for the company in a research note on Wednesday, July 23rd. Finally, JMP Securities raised their price target on Synchrony Financial from $68.00 to $77.00 and gave the stock a "market outperform" rating in a research report on Thursday, July 17th. Eight analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company. According to data from MarketBeat.com, Synchrony Financial currently has an average rating of "Moderate Buy" and a consensus target price of $74.05.

Synchrony Financial Price Performance

Shares of SYF traded up $0.91 during midday trading on Wednesday, reaching $69.36. The stock had a trading volume of 2,890,325 shares, compared to its average volume of 3,631,697. The company has a market capitalization of $25.81 billion, a price-to-earnings ratio of 8.42, a price-to-earnings-growth ratio of 0.70 and a beta of 1.49. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 1.02. Synchrony Financial has a 12-month low of $40.54 and a 12-month high of $73.76. The company's 50-day moving average is $66.57 and its 200 day moving average is $60.24.

Synchrony Financial (NYSE:SYF - Get Free Report) last announced its earnings results on Tuesday, July 22nd. The financial services provider reported $2.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.72 by $0.78. The business had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.71 billion. Synchrony Financial had a net margin of 14.43% and a return on equity of 21.34%. Synchrony Financial's revenue for the quarter was down 1.8% on a year-over-year basis. During the same period in the previous year, the business posted $1.55 earnings per share.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Rockefeller Capital Management L.P. raised its position in shares of Synchrony Financial by 29.9% in the 2nd quarter. Rockefeller Capital Management L.P. now owns 36,841 shares of the financial services provider's stock worth $2,459,000 after purchasing an additional 8,483 shares during the last quarter. Kingsview Wealth Management LLC raised its holdings in Synchrony Financial by 2,246.0% in the 2nd quarter. Kingsview Wealth Management LLC now owns 146,860 shares of the financial services provider's stock worth $9,801,000 after acquiring an additional 140,600 shares during the last quarter. Citizens Financial Group Inc. RI lifted its position in Synchrony Financial by 31.4% in the 2nd quarter. Citizens Financial Group Inc. RI now owns 6,654 shares of the financial services provider's stock valued at $444,000 after acquiring an additional 1,589 shares in the last quarter. Intech Investment Management LLC boosted its stake in Synchrony Financial by 18.4% during the 2nd quarter. Intech Investment Management LLC now owns 130,578 shares of the financial services provider's stock valued at $8,715,000 after purchasing an additional 20,275 shares during the last quarter. Finally, JBF Capital Inc. increased its holdings in shares of Synchrony Financial by 18.8% in the 2nd quarter. JBF Capital Inc. now owns 19,000 shares of the financial services provider's stock worth $1,268,000 after purchasing an additional 3,000 shares in the last quarter. Institutional investors own 96.48% of the company's stock.

Insider Transactions at Synchrony Financial

In related 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 sale, the insider directly owned 21,372 shares of the company's stock, valued at $1,452,227.40. This represents a 2.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Jonathan S. Mothner sold 40,639 shares of the company's stock in a transaction dated Monday, May 19th. The stock was sold at an average price of $60.07, for a total transaction of $2,441,184.73. Following the completion of the sale, the insider directly owned 146,628 shares in the company, valued at $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. Insiders sold a total of 61,133 shares of company stock worth $3,817,635 over the last 90 days. 0.32% of the stock is currently owned by insiders.

Synchrony Financial Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 15th. Stockholders of record on Tuesday, August 5th will be given a $0.30 dividend. The ex-dividend date of this dividend is Tuesday, August 5th. This represents a $1.20 annualized dividend and a dividend yield of 1.7%. Synchrony Financial's dividend payout ratio is currently 14.56%.

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.