Synchrony Financial (NYSE:SYF) announced its quarterly earnings results on Friday, July 21st. The financial services provider reported $0.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.58 by $0.03, Bloomberg Earnings reports. The business had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.59 billion. Synchrony Financial had a return on equity of 15.30% and a net margin of 13.84%. During the same quarter in the prior year, the company earned $0.58 earnings per share.
Shares of Synchrony Financial (NYSE:SYF) opened at 30.25 on Thursday. Synchrony Financial has a 1-year low of $26.01 and a 1-year high of $38.06. The company’s 50-day moving average price is $29.84 and its 200 day moving average price is $31.83. The company has a market cap of $24.06 billion, a price-to-earnings ratio of 11.36 and a beta of 1.01.
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 17th. Investors of record on Monday, August 7th will be paid a dividend of $0.15 per share. This is a positive change from Synchrony Financial’s previous quarterly dividend of $0.13. The ex-dividend date is Thursday, August 3rd. This represents a $0.60 annualized dividend and a yield of 1.98%. Synchrony Financial’s dividend payout ratio (DPR) is currently 22.64%.
In related news, Director Paget Leonard Alves acquired 2,000 shares of the company’s stock in a transaction on Monday, July 24th. The stock was acquired at an average price of $30.85 per share, with a total value of $61,700.00. Following the acquisition, the director now directly owns 8,521 shares of the company’s stock, valued at $262,872.85. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. 0.03% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Benjamin F. Edwards & Company Inc. increased its position in Synchrony Financial by 41.7% in the first quarter. Benjamin F. Edwards & Company Inc. now owns 3,280 shares of the financial services provider’s stock valued at $113,000 after buying an additional 965 shares during the period. First Quadrant L P CA raised its stake in Synchrony Financial by 55.4% in the second quarter. First Quadrant L P CA now owns 3,726 shares of the financial services provider’s stock worth $111,000 after buying an additional 1,328 shares during the period. State of Alaska Department of Revenue purchased a new stake in Synchrony Financial during the first quarter worth $152,000. Coconut Grove Bank raised its stake in Synchrony Financial by 93.9% in the first quarter. Coconut Grove Bank now owns 4,480 shares of the financial services provider’s stock worth $154,000 after buying an additional 2,170 shares during the period. Finally, Northwestern Mutual Wealth Management Co. raised its position in shares of Synchrony Financial by 28.2% in the first quarter. Northwestern Mutual Wealth Management Co. now owns 4,901 shares of the financial services provider’s stock worth $168,000 after buying an additional 1,077 shares during the period. 89.61% of the stock is owned by institutional investors and hedge funds.
Synchrony Financial announced that its board has initiated a stock buyback plan on Thursday, May 18th that allows the company to buyback $1.64 billion in shares. This buyback authorization allows the financial services provider to buy up to 7.6% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its shares are undervalued.
Several analysts have recently commented on SYF shares. TheStreet downgraded Synchrony Financial from a “b” rating to a “c+” rating in a research note on Wednesday, May 3rd. BidaskClub downgraded Synchrony Financial from a “buy” rating to a “hold” rating in a research note on Friday, July 28th. Oppenheimer Holdings, Inc. reissued a “hold” rating on shares of Synchrony Financial in a research note on Sunday, April 30th. ValuEngine downgraded Synchrony Financial from a “buy” rating to a “hold” rating in a research note on Friday, June 2nd. Finally, Jefferies Group LLC reissued a “buy” rating and issued a $40.00 price objective on shares of Synchrony Financial in a research note on Friday, June 9th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating, seventeen have given a buy rating and one has issued a strong buy rating to the company. The stock presently has an average rating of “Buy” and an average price target of $37.46.
Synchrony Financial Company Profile
Synchrony Financial is a consumer financial services company. The Company provides a range of credit products through programs it has established with a group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers. The Company’s revenue activities are managed through three sales platforms: Retail Card, Payment Solutions and CareCredit.
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