CIBC Asset Management Inc. increased its holdings of Synchrony Financial shares (NYSE: SYF – Get a rating) by 26.8% in the first quarter, according to the company in its latest 13F filing with the Securities and Exchange Commission. The fund held 67,293 shares of the financial services provider after acquiring an additional 14,205 shares during the quarter. The holdings of CIBC Asset Management Inc. in Synchrony Financial were worth $2,342,000 at the end of the most recent quarter.
A number of other large investors have also recently changed their holdings in SYF. Norges Bank purchased a new stake in shares of Synchrony Financial during Q4, valued at approximately $243,432,000. Marshall Wace LLP increased its position in Synchrony Financial by 8,460.7% in Q4. 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 in the last quarter. Ceredex Value Advisors LLC increased its position in Synchrony Financial by 189.0% in the 4th 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 in the last quarter. BlackRock Inc. increased its position in Synchrony Financial by 4.3% in the 4th quarter. BlackRock Inc. now owns 46,743,789 shares of the financial services provider worth $2,168,444,000 after purchasing an additional 1,945,620 shares in the last quarter. Finally, Los Angeles Capital Management LLC increased its position in Synchrony Financial by 58.0% in the 4th quarter. Los Angeles Capital Management LLC now owns 3,674,380 shares of the financial services provider worth $170,454,000 after buying an additional 1,349,252 shares in the last quarter. Institutional investors hold 98.26% of the company’s shares.
Analyst upgrades and downgrades
A number of analysts have weighed in on SYF shares recently. Barclays lowered its price target on Synchrony Financial from $64.00 to $49.00 and set an “overweight” rating for the company in a Monday July 11 research report. JMP Securities lowered its price target on Synchrony Financial from $50.00 to $40.00 and set a “market outperformance” rating for the company in a Friday, July 15 research report. 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 Tuesday, April 19 research report. TheStreet downgraded Synchrony Financial from a “b-” to a “c+” rating in a Tuesday, July 19 research report. Finally, Piper Sandler set a price target of $41.00 on Synchrony Financial in a Tuesday, July 19 research note. One financial analyst gave the stock a sell rating, four gave the company a hold rating and twelve gave the company a buy rating. Based on MarketBeat data, Synchrony Financial currently has a consensus rating of “Moderate Buy” and a consensus price target of $45.76.
Synchrony financial price performance
SYF opened at $33.90 on Monday. The company has a debt ratio of 0.96, a quick ratio of 1.21 and a current ratio of 1.21. Synchrony Financial has a 52-week low of $27.22 and a 52-week high of $52.49. The stock has a market capitalization of $16.33 billion, a PE ratio of 4.95, a growth price-earnings 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.
Synchrony Financial (NYSE: SYF – Get a rating) last released its quarterly 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 achieved EPS of $2.12. On average, equity research analysts expect Synchrony Financial to post an EPS of 5.71 for the current year.
Synchrony Financial increases its dividend
The company also recently declared a quarterly dividend, which will be paid on Thursday, August 11. Investors of record 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 authorized a share buyback program on Monday, April 18 that allows the company to repurchase $2.80 billion in outstanding stock. This repurchase authorization allows the financial services provider to acquire up to 13.6% of its shares through purchases on the open market. Stock buyback programs usually indicate that the management of the company believes that its shares are undervalued.
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, 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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