Synchrony Financial (NYSE:SYF) Stock Rating Reaffirmed by Morgan Stanley

Morgan Stanley reaffirmed their underweight rating on shares of Synchrony Financial (NYSE:SYF) in a research note published on Wednesday, Benzinga reports. Morgan Stanley currently has a $30.00 price objective on the financial services provider’s stock.

Other equities analysts also recently issued reports about the stock. TD Cowen increased their target price on shares of Synchrony Financial from $49.00 to $51.00 and gave the stock a buy rating in a research report on Thursday, April 25th. Wells Fargo & Company increased their target price on shares of Synchrony Financial from $38.00 to $45.00 and gave the stock an equal weight rating in a research report on Wednesday, April 10th. BTIG Research began coverage on shares of Synchrony Financial in a research report on Friday, June 7th. They set a buy rating and a $60.00 target price on the stock. Keefe, Bruyette & Woods reissued an outperform rating and set a $62.00 target price on shares of Synchrony Financial in a research report on Tuesday, June 11th. Finally, Evercore ISI increased their target price on shares of Synchrony Financial from $45.00 to $47.00 and gave the stock an outperform rating in a research report on Thursday, March 28th. One analyst has rated the stock with a sell rating, ten have assigned a hold rating and eleven have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of Hold and a consensus target price of $44.55.

Synchrony Financial Price Performance

Shares of NYSE:SYF opened at $41.69 on Wednesday. The company has a current ratio of 1.24, a quick ratio of 1.23 and a debt-to-equity ratio of 1.15. Synchrony Financial has a 1 year low of $27.30 and a 1 year high of $46.72. The business has a fifty day simple moving average of $43.38 and a 200 day simple moving average of $40.53. The firm has a market cap of $16.74 billion, a price-to-earnings ratio of 5.98, a P/E/G ratio of 1.00 and a beta of 1.60.

Synchrony Financial (NYSE:SYF) last announced its quarterly earnings data 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 return on equity of 16.01% and a net margin of 13.49%. The firm 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 business posted $1.35 earnings per share. As a group, sell-side analysts predict that Synchrony Financial will post 5.71 earnings per share for the current fiscal year.

Synchrony Financial Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, May 15th. Investors of record on Monday, May 6th were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 2.40%. The ex-dividend date was Friday, May 3rd. Synchrony Financial’s dividend payout ratio (DPR) is presently 14.35%.

Synchrony Financial announced that its board has authorized a share repurchase plan on Wednesday, April 24th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to purchase up to 5.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.

Insider Buying and Selling at Synchrony Financial

In other Synchrony Financial news, insider Curtis Howse sold 31,562 shares of Synchrony Financial stock in a transaction that occurred on Thursday, May 2nd. The stock was sold at an average price of $45.00, for a total transaction of $1,420,290.00. Following the sale, the insider now directly owns 121,042 shares of the company’s stock, valued at $5,446,890. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Synchrony Financial

A number of institutional investors have recently added to or reduced their stakes in the stock. DekaBank Deutsche Girozentrale boosted its holdings in Synchrony Financial by 1.8% during the first quarter. DekaBank Deutsche Girozentrale now owns 285,918 shares of the financial services provider’s stock valued at $11,958,000 after purchasing an additional 4,966 shares in the last quarter. Boston Partners boosted its holdings in shares of Synchrony Financial by 66.6% in the 1st quarter. Boston Partners now owns 6,374,260 shares of the financial services provider’s stock worth $274,892,000 after acquiring an additional 2,548,180 shares in the last quarter. Cetera Advisors LLC boosted its holdings in shares of Synchrony Financial by 13.3% in the 1st quarter. Cetera Advisors LLC now owns 10,805 shares of the financial services provider’s stock worth $466,000 after acquiring an additional 1,268 shares in the last quarter. Cetera Investment Advisers acquired a new position in shares of Synchrony Financial in the 1st quarter worth approximately $2,192,000. Finally, Invst LLC acquired a new position in shares of Synchrony Financial in the 1st quarter worth approximately $815,000. 96.48% of the stock is owned by institutional investors and hedge funds.

About Synchrony Financial

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.