Synchrony Financial (NYSE:SYF) Sets New 52-Week High Following Dividend Announcement

Synchrony Financial (NYSE:SYF)’s stock price reached a new 52-week high during trading on Wednesday following a dividend announcement from the company. The company traded as high as $44.45 and last traded at $43.97, with a volume of 1534969 shares. The stock had previously closed at $42.86.

The newly announced dividend which will be paid on Wednesday, May 15th. Shareholders of record on Monday, May 6th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 2.24%. The ex-dividend date of this dividend is Friday, May 3rd. Synchrony Financial’s dividend payout ratio (DPR) is presently 14.35%.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on SYF shares. Bank of America lifted their price objective on shares of Synchrony Financial from $43.00 to $44.00 and gave the company a “neutral” rating in a research note on Thursday. JMP Securities upped their price objective on shares of Synchrony Financial from $35.00 to $42.00 and gave the company a “market outperform” rating in a report on Friday, January 12th. Morgan Stanley restated an “underweight” rating and issued a $30.00 target price on shares of Synchrony Financial in a research note on Thursday, February 8th. Wells Fargo & Company upped their price target on Synchrony Financial from $38.00 to $45.00 and gave the stock an “equal weight” rating in a research note on Wednesday, April 10th. Finally, Oppenheimer reissued a “market perform” rating on shares of Synchrony Financial in a research note on Wednesday, March 6th. One research analyst has rated the stock with a sell rating, ten have given a hold rating and nine have issued a buy rating to the company. According to MarketBeat.com, Synchrony Financial currently has an average rating of “Hold” and an average price target of $42.72.

Synchrony Financial Price Performance

The company has a market capitalization of $18.17 billion, a P/E ratio of 6.41, a price-to-earnings-growth ratio of 1.11 and a beta of 1.61. The business’s 50-day moving average is $41.56 and its two-hundred day moving average is $36.76. The company has a quick ratio of 1.22, a current ratio of 1.24 and a debt-to-equity ratio of 1.15.

Synchrony Financial (NYSE:SYF) last posted its earnings results on Wednesday, April 24th. The financial services provider reported $1.18 EPS for the quarter, missing the consensus estimate of $1.37 by ($0.19). The firm had revenue of $5.57 billion for the quarter, compared to the consensus estimate of $4.44 billion. Synchrony Financial had a return on equity of 16.01% and a net margin of 13.49%. During the same period in the prior year, the business earned $1.35 EPS. As a group, analysts predict that Synchrony Financial will post 5.57 earnings per share for the current year.

Synchrony Financial declared that its Board of Directors has initiated a share repurchase plan on Wednesday, April 24th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the financial services provider to buy up to 5.5% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling at Synchrony Financial

In related news, insider Brian D. Doubles sold 134,696 shares of the business’s stock in a transaction dated Tuesday, March 5th. The shares were sold at an average price of $41.26, for a total value of $5,557,556.96. Following the transaction, the insider now directly owns 660,353 shares of the company’s stock, valued at approximately $27,246,164.78. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. In other news, insider Brian D. Doubles sold 134,696 shares of the firm’s stock in a transaction that occurred on Tuesday, March 5th. The shares were sold at an average price of $41.26, for a total transaction of $5,557,556.96. Following the completion of the sale, the insider now owns 660,353 shares in the company, valued at approximately $27,246,164.78. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Curtis Howse sold 6,179 shares of the company’s stock in a transaction that occurred on Friday, March 15th. The shares were sold at an average price of $42.82, for a total value of $264,584.78. Following the completion of the transaction, the insider now owns 152,604 shares in the company, valued at approximately $6,534,503.28. The disclosure for this sale can be found here. Insiders sold 148,158 shares of company stock worth $6,106,106 in the last quarter. 0.65% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Synchrony Financial

Large investors have recently added to or reduced their stakes in the company. Exchange Traded Concepts LLC bought a new position in Synchrony Financial during the third quarter worth about $35,000. Massmutual Trust Co. FSB ADV boosted its holdings in Synchrony Financial by 44.1% in the 4th quarter. Massmutual Trust Co. FSB ADV now owns 1,274 shares of the financial services provider’s stock worth $49,000 after buying an additional 390 shares during the period. Wetzel Investment Advisors Inc. purchased a new position in Synchrony Financial in the 4th quarter valued at approximately $55,000. Brown Brothers Harriman & Co. raised its holdings in 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 valued at $55,000 after acquiring an additional 522 shares during the period. Finally, Principal Securities Inc. purchased a new stake in shares of Synchrony Financial during the fourth quarter worth $60,000. Hedge funds and other institutional investors own 96.48% of the company’s stock.

Synchrony Financial Company Profile

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.