Synchrony Financial Inc (NYSE:SYF) Hits New 12-Month Low Following Analyst Downgrade


Shares of Synchrony Financial (NYSE:SYF – Get Rating) hit a new 52-week low on Thursday after Piper Sandler lowered her price target on the stock from $49.00 to $42.00. Piper Sandler currently has an overweight rating on the stock. Synchrony Financial traded at $27.22 and last traded at $27.33, with a volume of 40356 shares. The stock previously closed at $28.53.

SYF has been the subject of a number of other research reports. Wolfe Research downgraded Synchrony Financial from a “peer performing” rating to an “underperforming” rating and set a target price of $22.00 for the company. in a research report on Thursday, May 12. Morgan Stanley downgraded Synchrony Financial from an “overweight” rating to an “equal weight” rating and lowered its price target for the company from $56.00 to $40.00 in a Monday, March 28 report. Wells Fargo & Company lowered its price target on Synchrony Financial from $52.00 to $45.00 and set an “overweight” rating for the company in a Wednesday, April 6 report. BMO Capital Markets raised its price target on Synchrony Financial from $49.00 to $52.00 and gave the stock an “outperform” rating in a Tuesday, April 19 report. Finally, upgraded Synchrony Financial from a “hold” rating to a “buy” rating in a Monday, June 20 research report. One research analyst rated the stock with a sell rating, five issued a hold rating and thirteen assigned the company’s stock a buy rating. Based on MarketBeat data, Synchrony Financial currently has a consensus rating of “Moderate Buy” and an average target price of $50.61.

A number of institutional investors and hedge funds have recently changed their positions in the company. Rehmann Capital Advisory Group increased its stake in Synchrony Financial by 13.2% in the 1st quarter. Rehmann Capital Advisory Group now owns 7,347 shares of the financial services provider worth $254,000 after purchasing an additional 857 shares during the period. EverSource Wealth Advisors LLC increased its stake in Synchrony Financial by 1,769.1% in Q1. EverSource Wealth Advisors LLC now owns 1,757 shares of the financial services provider worth $61,000 after purchasing an additional 1,663 shares during the period. Advisory Services Network LLC raised its position in Synchrony Financial shares by 357.2% in the first quarter. Advisory Services Network LLC now owns 23,543 shares of the financial services provider worth $819,000 after acquiring an additional 18,394 shares in the last quarter. Toroso Investments LLC increased its position in Synchrony Financial shares by 12.3% in the first quarter. Toroso Investments LLC now owns 16,010 shares of the financial services provider worth $557,000 after acquiring 1,752 additional shares in the last quarter. Finally, Chicago Partners Investment Group LLC bought a new stock position in Synchrony Financial in Q1 for about $215,000. 98.26% of the shares are currently held by hedge funds and other institutional investors.

The company has a 50-day moving average price of $34.14 and a two-hundred-day moving average price of $39.21. The company has a current ratio of 1.24, a quick ratio of 1.18 and a debt ratio of 1.05. The stock has a market capitalization of $13.76 billion, a P/E ratio of 3.87, a price-to-earnings growth ratio of 0.23 and a beta of 1.43.

Synchrony Financial (NYSE:SYF – Get Rating) last released quarterly earnings data on Monday, April 18. The financial services provider reported earnings per share of $1.73 for the quarter, beating the consensus estimate of $1.53 by $0.20. Synchrony Financial had a return on equity of 29.99% and a net margin of 26.26%. The company posted revenue of $3.79 billion in the quarter, versus analyst estimates of $2.66 billion. During the same period last year, the company posted EPS of $1.73. Research analysts expect Synchrony Financial to post earnings per share of 5.63 for the current year.

The company also recently announced a quarterly dividend, which was paid on Thursday, May 12. Investors of record on Monday, May 2 received a dividend of $0.22. This represents a dividend of $0.88 on an annualized basis and a yield of 3.21%. The ex-dividend date was Friday, April 29. Synchrony Financial’s payout ratio is 11.94%.

Synchrony Financial announced that its board of directors approved a stock buyback plan on Monday, April 18 that allows the company to repurchase $2.80 billion worth of stock. This repurchase authorization allows the financial services provider to repurchase up to 13.6% of its shares through purchases on the open market. Stock buyback plans are often a sign that the company’s board of directors thinks its stock is undervalued.

Synchrony Financial Company Profile (NYSE: SYF)

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, trade credit products and consumer installment loans. The company also offers private label credit cards, dual cards, co-branded 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 for retail and commercial customers, as well as deposits through brokerage firms in third-party securities.

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