Synchrony Financial (NYSE:SYF) Stock Price Down 8.1% – What’s Next?

Synchrony Financial (NYSE:SYF) fell 8.1% during trading on Wednesday . The stock traded as low as $70.91 and last traded at $69.40. 3,358,314 shares were traded during trading, a decline of 20% from the average session volume of 4,186,337 shares. The stock had previously closed at $75.52.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Wells Fargo & Company dropped their price target on Synchrony Financial from $100.00 to $95.00 and set an “overweight” rating for the company in a research report on Thursday, April 9th. BTIG Research cut shares of Synchrony Financial from a “buy” rating to a “neutral” rating in a research note on Wednesday, April 22nd. Loop Capital began coverage on shares of Synchrony Financial in a report on Friday, May 22nd. They set a “hold” rating and a $81.00 price target for the company. UBS Group boosted their price objective on shares of Synchrony Financial from $77.00 to $84.00 and gave the company a “neutral” rating in a research report on Tuesday. Finally, Barclays upped their price objective on shares of Synchrony Financial from $82.00 to $93.00 and gave the company an “overweight” rating in a research note on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $86.21.

Synchrony Financial Stock Up 1.1%

The firm has a fifty day simple moving average of $73.22 and a 200 day simple moving average of $73.87. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.24 and a current ratio of 1.24. The company has a market cap of $24.33 billion, a PE ratio of 7.48, a PEG ratio of 0.60 and a beta of 1.32.

Synchrony Financial (NYSE:SYF) last released its earnings results on Tuesday, April 21st. The financial services provider reported $2.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.14 by $0.13. Synchrony Financial had a net margin of 15.80% and a return on equity of 23.41%. The business had revenue of $3.70 billion for the quarter, compared to analysts’ expectations of $3.81 billion. During the same period last year, the company earned $1.89 earnings per share. The company’s quarterly revenue was down 7.4% on a year-over-year basis. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. Equities research analysts predict that Synchrony Financial will post 9.34 EPS for the current year.

Synchrony Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Tuesday, May 5th were issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date was Tuesday, May 5th. Synchrony Financial’s dividend payout ratio is presently 12.41%.

Synchrony Financial announced that its board has approved a share repurchase program on Tuesday, April 21st that permits the company to buyback $0.00 in shares. This buyback authorization permits the financial services provider to purchase shares of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at Synchrony Financial

In related news, insider Jonathan S. Mothner sold 51,258 shares of Synchrony Financial stock in a transaction on Friday, May 15th. The stock was sold at an average price of $71.23, for a total value of $3,651,107.34. Following the transaction, the insider owned 132,664 shares in the company, valued at approximately $9,449,656.72. This trade represents a 27.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.36% of the company’s stock.

Hedge Funds Weigh In On Synchrony Financial

A number of large investors have recently modified their holdings of the company. Norges Bank acquired a new position in Synchrony Financial during the fourth quarter valued at approximately $383,231,000. Bank of America Corp DE increased its position in shares of Synchrony Financial by 34.6% in the second quarter. Bank of America Corp DE now owns 13,595,381 shares of the financial services provider’s stock worth $907,356,000 after acquiring an additional 3,494,741 shares in the last quarter. PFA Pension Forsikringsaktieselskab purchased a new position in shares of Synchrony Financial in the 4th quarter valued at $84,494,000. Worldquant Millennium Advisors LLC raised its stake in shares of Synchrony Financial by 222.5% in the 2nd quarter. Worldquant Millennium Advisors LLC now owns 937,296 shares of the financial services provider’s stock valued at $62,555,000 after acquiring an additional 646,642 shares during the period. Finally, Nordea Investment Management AB lifted its holdings in shares of Synchrony Financial by 13.0% during the 4th quarter. Nordea Investment Management AB now owns 5,134,903 shares of the financial services provider’s stock valued at $431,999,000 after acquiring an additional 592,567 shares in the last quarter. 96.48% of the stock is currently owned by hedge funds and other institutional investors.

Synchrony Financial Company Profile

Synchrony Financial (NYSE: SYF) is a consumer financial services company that specializes in providing point-of-sale financing and private-label, co-branded and branded credit card programs. The company serves as a payments and lending partner to retailers, digital merchants and service providers, offering consumer financing solutions designed to drive customer engagement and sales. Synchrony also operates a direct bank that offers deposit products, including savings accounts and certificates of deposit, which support its funding and customer-facing product suite.

Its core product set includes private-label and co-branded credit cards, general-purpose credit cards, installment loan programs and promotional financing options that are integrated into merchants’ checkout experiences.