Bank of America Boosts Synchrony Financial (NYSE:SYF) Price Target to $56.00

Synchrony Financial (NYSE:SYF) had its target price boosted by Bank of America from $51.00 to $56.00 in a report issued on Thursday, Benzinga reports. They currently have a neutral rating on the financial services provider’s stock.

Several other research firms have also recently issued reports on SYF. Wolfe Research raised Synchrony Financial from an underperform rating to an outperform rating and upped their price target for the company from $36.00 to $50.00 in a report on Thursday, April 4th. Robert W. Baird initiated coverage on Synchrony Financial in a report on Friday, June 28th. They issued an outperform rating and a $56.00 price target on the stock. Wells Fargo & Company upped their price target on Synchrony Financial from $45.00 to $49.00 and gave the company an equal weight rating in a report on Tuesday, July 9th. StockNews.com raised Synchrony Financial from a hold rating to a buy rating in a research report on Friday, July 12th. Finally, Baird R W upgraded Synchrony Financial to a strong-buy rating in a report on Friday, June 28th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of Moderate Buy and an average target price of $50.50.

Synchrony Financial Price Performance

NYSE SYF opened at $49.97 on Thursday. The stock has a market capitalization of $20.06 billion, a P/E ratio of 7.17, a P/E/G ratio of 1.18 and a beta of 1.63. Synchrony Financial has a 1 year low of $27.30 and a 1 year high of $52.67. The business’s fifty day moving average is $45.38 and its two-hundred day moving average is $42.47. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.23 and a current ratio of 1.23.

Synchrony Financial (NYSE:SYF) last posted its quarterly earnings results on Wednesday, July 17th. The financial services provider reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.35 by $0.20. The company had revenue of $5.58 billion for the quarter, compared to analysts’ expectations of $4.44 billion. Synchrony Financial had a return on equity of 16.06% and a net margin of 13.52%. During the same quarter in the prior year, the company earned $1.32 earnings per share. On average, research analysts forecast that Synchrony Financial will post 5.82 earnings per share for the current fiscal year.

Synchrony Financial declared that its Board of Directors has approved a stock buyback program on Wednesday, April 24th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the financial services provider to reacquire up to 5.5% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Synchrony Financial Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, May 15th. Shareholders of record on Monday, May 6th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 2.00%. The ex-dividend date was Friday, May 3rd. Synchrony Financial’s dividend payout ratio (DPR) is presently 14.35%.

Insider Transactions at Synchrony Financial

In related news, insider Curtis Howse sold 31,562 shares of Synchrony Financial stock in a transaction on Thursday, May 2nd. The shares were sold at an average price of $45.00, for a total value of $1,420,290.00. Following the completion of the sale, the insider now owns 121,042 shares of the company’s stock, valued at approximately $5,446,890. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.33% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Headlands Technologies LLC bought a new stake in Synchrony Financial during the first quarter worth approximately $28,000. Versant Capital Management Inc lifted its stake in shares of Synchrony Financial by 786.6% in the second quarter. Versant Capital Management Inc now owns 1,055 shares of the financial services provider’s stock worth $50,000 after buying an additional 936 shares during the last quarter. Future Financial Wealth Managment LLC acquired a new stake in shares of Synchrony Financial in the first quarter worth $60,000. Brown Brothers Harriman & Co. boosted its holdings in shares of Synchrony Financial by 56.6% during the 4th quarter. Brown Brothers Harriman & Co. now owns 1,445 shares of the financial services provider’s stock worth $55,000 after buying an additional 522 shares during the period. Finally, Wetzel Investment Advisors Inc. acquired a new position in Synchrony Financial in the 4th quarter valued at $55,000. 96.48% of the stock is owned by institutional investors.

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.