CIBC Asset Management Inc increased its stake in shares of Synchrony Financial (New York Stock Exchange:SYF – get rating) by 26.8% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 67,293 shares of the financial services provider after buying an additional 14,205 shares during the quarter. CIBC Asset Management Inc’s holdings in Synchrony Financial were worth $2,342,000 at the end of the most recent quarter.
Several other large investors have also recently modified their SYF holdings. Norges Bank purchased a new share of Synchrony Financial stock during the fourth quarter valued at about $243,432,000. Marshall Wace LLP improved its position in Synchrony Financial by 8,460.7% in the fourth quarter. Marshall Wace LLP now owns 3,147,770 shares of the financial services provider worth $146,028,000 after purchasing an additional 3,111,000 shares during the last quarter. Ceredex Value Advisors LLC improved its position in Synchrony Financial by 189.0% in the fourth quarter. Ceredex Value Advisors LLC now owns 4,487,006 shares of the financial services provider worth $208,152,000 after purchasing an additional 2,934,606 shares during the last quarter. BlackRock Inc. improved its position in Synchrony Financial by 4.3% in the fourth quarter. BlackRock Inc. now owns 46,743,789 shares of the financial services provider worth $2,168,444,000 after buying an additional 1,945,620 shares last quarter. Finally, Los Angeles Capital Management LLC improved its position in Synchrony Financial by 58.0% in the fourth quarter. Los Angeles Capital Management LLC now owns 3,674,380 shares of the financial services provider worth $170,454,000 after purchasing an additional 1,349,252 shares during the last quarter. Institutional investors own 98.26% of the company’s shares.
Analyst promotions and demotions
Several analysts recently weighed in on SYF’s stock. Barclays lowered its price target on Synchrony Financial from $64.00 to $49.00 and set an “overweight” rating on the company in a research report on Monday, July 11. JMP Securities lowered its price target on Synchrony Financial from $50.00 to $40.00 and set an “outperform market” rating on the company in a research report on Friday, July 15. Goldman Sachs Group raised its price target on Synchrony Financial from $40.00 to $45.00 and gave the stock a “buy” rating in a research report on Tuesday, April 19. TheStreet downgraded Synchrony Financial from a “b-” rating to a “c+” rating in a research report on Tuesday, July 19. Finally, Piper Sandler set a price target of $41.00 on Synchrony Financial in a research note on Tuesday, July 19. One investment analyst has rated the shares a sell rating, four have given a hold rating and twelve have given the company’s shares a buy rating. According to MarketBeat data, Synchrony Financial currently has a “Moderate Buy” consensus rating and a consensus price target of $45.76.
Synchrony Financial Price Performance
SYF opened at $33.90 on Monday. The firm has a debt-to-equity ratio of 0.96, a quick ratio of 1.21, and a current ratio of 1.21. Synchrony Financial has a 52-week minimum of $27.22 and a 52-week maximum of $52.49. The stock has a market capitalization of $16.33 billion, a PE ratio of 4.95, a price/earnings growth ratio of 0.26, and a beta of 1.57. The stock’s 50-day moving average price is $31.64 and its 200-day moving average price is $36.14.
Financial Synchronization (New York Stock Exchange:SYF – get rating) last published its quarterly earnings results on Monday, July 18. The financial services provider reported earnings per share of $1.60 for the quarter, beating the consensus estimate of $1.47 by $0.13. Synchrony Financial had a return on equity of 27.06% and a net margin of 22.76%. During the same period of the previous year, the company earned $2.12 EPS. On average, stock research analysts predict that Synchrony Financial will post 5.71 EPS for the current year.
Synchrony Financial raises dividends
The company also recently declared a quarterly dividend, to be paid on Thursday, August 11. Investors registered on Monday, August 1 will receive a dividend of $0.23. This represents an annualized dividend of $0.92 and a yield of 2.71%. This is a boost from Synchrony Financial’s previous quarterly dividend of $0.22. The ex-dividend date is Friday, July 29. Synchrony Financial’s dividend payout ratio is currently 13.43%.
Synchrony Financial announced that its Board of Directors authorized a share repurchase program on Monday, April 18 that allows the company to repurchase $2.8 billion in outstanding shares. This repurchase authorization allows the financial services provider to acquire up to 13.6% of its shares through open market purchases. Stock buyback programs are often an indication that company leadership believes its stock is undervalued.
About Synchrony Financial
Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States. Offers credit products, such as credit cards, business 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 business customers, as well as accept deposits through third-party securities brokerage firms.
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