Synchrony Financial (NYSE:SYF) Authorizes Stock Buyback Program

Synchrony Financial (NYSE:SYF) announced that its board has approved a share buyback program on Wednesday, April 24th, RTT News reports. The company plans to buyback $1.00 billion in outstanding shares. This buyback authorization allows the financial services provider to repurchase up to 5.5% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Synchrony Financial Stock Performance

Synchrony Financial stock opened at $44.67 on Friday. The company has a quick ratio of 1.22, a current ratio of 1.24 and a debt-to-equity ratio of 1.15. The company has a market capitalization of $18.17 billion, a PE ratio of 6.41, a P/E/G ratio of 1.11 and a beta of 1.61. The firm has a fifty day simple moving average of $41.67 and a two-hundred day simple moving average of $36.86. Synchrony Financial has a twelve month low of $26.59 and a twelve month high of $45.46.

Synchrony Financial (NYSE:SYF) last announced its quarterly earnings results on Wednesday, April 24th. The financial services provider reported $1.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.37 by ($0.19). Synchrony Financial had a net margin of 13.49% and a return on equity of 16.01%. The company had revenue of $5.57 billion for the quarter, compared to analysts’ expectations of $4.44 billion. During the same quarter in the prior year, the firm earned $1.35 EPS. Research analysts expect that Synchrony Financial will post 5.57 EPS for the current year.

Synchrony Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, May 15th. Shareholders of record on Monday, May 6th will be issued a dividend of $0.25 per share. The ex-dividend date is Friday, May 3rd. This represents a $1.00 dividend on an annualized basis and a yield of 2.24%. Synchrony Financial’s dividend payout ratio is currently 14.35%.

Wall Street Analyst Weigh In

A number of research analysts have commented on SYF shares. Barclays increased their price objective on Synchrony Financial from $36.00 to $37.00 and gave the company an “equal weight” rating in a research report on Tuesday, April 9th. StockNews.com upgraded Synchrony Financial from a “hold” rating to a “buy” rating in a research report on Thursday. Deutsche Bank Aktiengesellschaft assumed coverage on Synchrony Financial in a research report on Wednesday, January 10th. They issued a “buy” rating and a $56.00 price objective on the stock. Wells Fargo & Company increased their price target on Synchrony Financial from $38.00 to $45.00 and gave the company an “equal weight” rating in a research note on Wednesday, April 10th. Finally, Piper Sandler increased their price target on Synchrony Financial from $46.00 to $48.00 and gave the company an “overweight” rating in a research note on Wednesday, January 24th. One investment analyst has rated the stock with a sell rating, ten have issued a hold rating and nine have issued a buy rating to the stock. According to data from MarketBeat, Synchrony Financial currently has a consensus rating of “Hold” and an average target price of $42.72.

Insider Buying and Selling at Synchrony Financial

In other news, insider David P. Melito sold 7,283 shares of the stock in a transaction on Thursday, February 1st. The shares were sold at an average price of $38.99, for a total value of $283,964.17. Following the completion of the sale, the insider now directly owns 14,183 shares of the company’s stock, valued at $552,995.17. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. In other news, insider Curtis Howse sold 6,179 shares of the firm’s stock in a transaction dated Friday, March 15th. The shares were sold at an average price of $42.82, for a total value of $264,584.78. Following the completion of the sale, the insider now owns 152,604 shares in the company, valued at approximately $6,534,503.28. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider David P. Melito sold 7,283 shares of the firm’s stock in a transaction dated Thursday, February 1st. The stock was sold at an average price of $38.99, for a total transaction of $283,964.17. Following the completion of the sale, the insider now owns 14,183 shares of the company’s stock, valued at approximately $552,995.17. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 148,158 shares of company stock valued at $6,106,106. Insiders own 0.65% 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.