Synchrony Financial (NYSE:SYF) Cut to “Hold” at Wall Street Zen

Wall Street Zen cut shares of Synchrony Financial (NYSE:SYF) from a buy rating to a hold rating in a research report released on Saturday morning.

Several other research firms have also recently commented on SYF. TD Cowen lifted their price target on Synchrony Financial from $91.00 to $100.00 and gave the company a “buy” rating in a report on Thursday, January 8th. Wells Fargo & Company boosted their target price on shares of Synchrony Financial from $95.00 to $100.00 and gave the company an “overweight” rating in a report on Monday, January 5th. Keefe, Bruyette & Woods upped their price target on shares of Synchrony Financial from $95.00 to $98.00 and gave the stock an “outperform” rating in a research report on Friday, January 2nd. Weiss Ratings reiterated a “buy (b-)” rating on shares of Synchrony Financial in a report on Wednesday, January 21st. Finally, Truist Financial dropped their price objective on Synchrony Financial from $92.00 to $84.00 and set a “hold” rating for the company in a report on Thursday, January 29th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $87.05.

Synchrony Financial Trading Up 1.2%

Shares of SYF opened at $73.53 on Friday. Synchrony Financial has a fifty-two week low of $40.54 and a fifty-two week high of $88.77. The company has a market capitalization of $26.48 billion, a PE ratio of 7.91, a price-to-earnings-growth ratio of 0.51 and a beta of 1.43. The stock has a fifty day moving average of $80.94 and a two-hundred day moving average of $75.75. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.24 and a current ratio of 1.24.

Synchrony Financial (NYSE:SYF) last posted its quarterly earnings data on Tuesday, January 27th. The financial services provider reported $2.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.02 by $0.16. The business had revenue of $3.79 billion for the quarter, compared to analysts’ expectations of $3.84 billion. Synchrony Financial had a return on equity of 23.07% and a net margin of 15.72%.The business’s revenue was down .2% on a year-over-year basis. During the same quarter last year, the firm earned $1.91 earnings per share. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. As a group, analysts forecast that Synchrony Financial will post 7.67 EPS for the current year.

Synchrony Financial announced that its Board of Directors has authorized a stock buyback program on Wednesday, October 15th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the financial services provider to buy up to 3.7% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Synchrony Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 17th. Shareholders of record on Friday, February 6th will be paid a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Friday, February 6th. Synchrony Financial’s payout ratio is currently 12.92%.

Insider Activity

In related news, insider Jonathan S. Mothner sold 32,000 shares of the firm’s stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $72.80, for a total transaction of $2,329,600.00. Following the sale, the insider directly owned 127,100 shares in the company, valued at approximately $9,252,880. This trade represents a 20.11% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Synchrony Financial

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Colonial Trust Co SC lifted its position in shares of Synchrony Financial by 40.2% during the third quarter. Colonial Trust Co SC now owns 474 shares of the financial services provider’s stock worth $34,000 after purchasing an additional 136 shares in the last quarter. CoreCap Advisors LLC increased its stake in Synchrony Financial by 34.4% during the 4th quarter. CoreCap Advisors LLC now owns 543 shares of the financial services provider’s stock worth $45,000 after buying an additional 139 shares during the period. Parkside Financial Bank & Trust lifted its holdings in Synchrony Financial by 15.1% in the 2nd quarter. Parkside Financial Bank & Trust now owns 1,106 shares of the financial services provider’s stock worth $74,000 after buying an additional 145 shares in the last quarter. United Community Bank boosted its position in Synchrony Financial by 3.4% in the 3rd quarter. United Community Bank now owns 4,469 shares of the financial services provider’s stock valued at $318,000 after buying an additional 145 shares during the last quarter. Finally, Choreo LLC grew its stake in shares of Synchrony Financial by 1.1% during the fourth quarter. Choreo LLC now owns 13,486 shares of the financial services provider’s stock valued at $1,137,000 after acquiring an additional 145 shares in the last quarter. Hedge funds and other institutional investors own 96.48% of the company’s stock.

About Synchrony Financial

Synchrony Financial (NYSE: SYF) is a consumer financial services company that specializes in providing point-of-sale financing and private-label, co-branded and branded credit card programs. The company serves as a payments and lending partner to retailers, digital merchants and service providers, offering consumer financing solutions designed to drive customer engagement and sales. Synchrony also operates a direct bank that offers deposit products, including savings accounts and certificates of deposit, which support its funding and customer-facing product suite.

Its core product set includes private-label and co-branded credit cards, general-purpose credit cards, installment loan programs and promotional financing options that are integrated into merchants’ checkout experiences.