Investors Buy Large Volume of Synchrony Financial Call Options (NYSE:SYF)

Synchrony Financial (NYSE:SYF) was the recipient of unusually large options trading activity on Monday. Traders acquired 5,027 call options on the stock. This is an increase of 168% compared to the average volume of 1,877 call options.

Synchrony Financial Stock Down 2.1%

Shares of NYSE:SYF opened at $75.19 on Wednesday. The firm’s 50 day moving average price is $74.87 and its 200 day moving average price is $73.62. The stock has a market cap of $23.42 billion, a price-to-earnings ratio of 7.85, a price-to-earnings-growth ratio of 0.95 and a beta of 1.40. Synchrony Financial has a fifty-two week low of $63.08 and a fifty-two week high of $88.77. The company has a quick ratio of 1.23, a current ratio of 1.23 and a debt-to-equity ratio of 1.15.

Synchrony Financial (NYSE:SYF) last released its quarterly earnings data on Tuesday, October 20th. The financial services provider reported $2.68 EPS for the quarter, beating analysts’ consensus estimates of $2.42 by $0.26. Synchrony Financial had a return on equity of 22.26% and a net margin of 14.59%. The business had revenue of $3.82 billion for the quarter, compared to the consensus estimate of $3.81 billion. During the same quarter in the prior year, the business posted $2.86 EPS. As a group, equities research analysts predict that Synchrony Financial will post 9.60 earnings per share for the current fiscal year.

Synchrony Financial Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, November 16th. Stockholders of record on Thursday, November 5th will be paid a $0.34 dividend. This represents a $1.36 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Thursday, November 5th. Synchrony Financial’s dividend payout ratio (DPR) is 14.20%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Pension & Wealth Management Advisors Inc. bought a new stake in shares of Synchrony Financial in the third quarter valued at approximately $26,000. Compass Financial Management LLC bought a new position in shares of Synchrony Financial in the second quarter worth about $29,000. Fiduciary Financial Advisors acquired a new position in shares of Synchrony Financial in the 2nd quarter valued at $33,000. GK Wealth Management LLC acquired a new position in shares of Synchrony Financial in the 3rd quarter valued at $31,000. Finally, Provenance Wealth Advisors LLC bought a new stake in shares of Synchrony Financial in the third quarter worth about $32,000. 96.48% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

SYF has been the subject of several research reports. Jefferies Financial Group reaffirmed a “buy” rating and set a $103.00 price objective on shares of Synchrony Financial in a research note on Tuesday, October 20th. Morgan Stanley cut their price objective on shares of Synchrony Financial from $84.00 to $83.00 and set an “equal weight” rating for the company in a report on Monday, October 12th. Weiss Ratings raised shares of Synchrony Financial from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. BMO Capital Markets began coverage on Synchrony Financial in a report on Friday, October 9th. They set a “market perform” rating and a $81.00 target price on the stock. Finally, Evercore lowered Synchrony Financial from an “outperform” rating to a “hold” rating and set a $78.00 price target for the company. in a research report on Wednesday, October 21st. Ten investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, Synchrony Financial has a consensus rating of “Moderate Buy” and an average target price of $87.78.

About Synchrony Financial

Synchrony Financial (NYSE: SYF) is a consumer financial services company that provides private-label credit cards, co-branded credit cards and promotional financing programs. Its financing products are offered through retailers, manufacturers, healthcare providers and other businesses, helping consumers pay for purchases over time.

The company serves a range of industries, including digital commerce, home improvement, furniture, automotive, healthcare, jewelry, apparel, electronics and specialty retail.