Synchrony Financial (NYSE:SYF) is Southpoint Capital Advisors LP’s 2nd Largest Position

Southpoint Capital Advisors LP increased its stake in shares of Synchrony Financial (NYSE:SYF) by 37.9% in the third quarter, HoldingsChannel.com reports. The institutional investor owned 4,600,000 shares of the financial services provider’s stock after buying an additional 1,265,000 shares during the quarter. Synchrony Financial makes up about 5.4% of Southpoint Capital Advisors LP’s portfolio, making the stock its 2nd largest position. Southpoint Capital Advisors LP’s holdings in Synchrony Financial were worth $229,448,000 at the end of the most recent quarter.

A number of other large investors have also added to or reduced their stakes in the stock. Verition Fund Management LLC increased its holdings in Synchrony Financial by 680.7% during the third quarter. Verition Fund Management LLC now owns 33,961 shares of the financial services provider’s stock worth $1,694,000 after buying an additional 29,611 shares during the last quarter. Icon Wealth Advisors LLC purchased a new stake in Synchrony Financial during the third quarter worth about $165,000. Martingale Asset Management L P increased its holdings in Synchrony Financial by 65.8% during the third quarter. Martingale Asset Management L P now owns 44,216 shares of the financial services provider’s stock worth $2,205,000 after buying an additional 17,548 shares during the last quarter. Vinva Investment Management Ltd increased its holdings in Synchrony Financial by 56.1% during the third quarter. Vinva Investment Management Ltd now owns 71,540 shares of the financial services provider’s stock worth $3,552,000 after buying an additional 25,706 shares during the last quarter. Finally, Public Sector Pension Investment Board increased its holdings in Synchrony Financial by 3.2% during the third quarter. Public Sector Pension Investment Board now owns 70,248 shares of the financial services provider’s stock worth $3,504,000 after buying an additional 2,200 shares during the last quarter. Hedge funds and other institutional investors own 96.48% of the company’s stock.

Synchrony Financial Stock Performance

Shares of SYF stock opened at $67.52 on Friday. Synchrony Financial has a one year low of $31.26 and a one year high of $68.69. The company’s 50-day moving average is $57.60 and its 200 day moving average is $50.47. The company has a market capitalization of $26.29 billion, a price-to-earnings ratio of 8.81, a price-to-earnings-growth ratio of 0.93 and a beta of 1.59. The company has a debt-to-equity ratio of 1.06, a quick ratio of 1.25 and a current ratio of 1.25.

Synchrony Financial (NYSE:SYF) last announced its quarterly earnings data on Wednesday, October 16th. The financial services provider reported $1.94 EPS for the quarter, beating the consensus estimate of $1.77 by $0.17. Synchrony Financial had a net margin of 13.98% and a return on equity of 16.64%. The company had revenue of $3.81 billion for the quarter, compared to the consensus estimate of $3.76 billion. During the same period in the prior year, the firm posted $1.48 EPS. Synchrony Financial’s revenue for the quarter was up 9.8% on a year-over-year basis. Sell-side analysts expect that Synchrony Financial will post 6.52 EPS for the current fiscal year.

Synchrony Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, November 15th. Investors of record on Monday, November 4th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 1.48%. The ex-dividend date was Monday, November 4th. Synchrony Financial’s dividend payout ratio (DPR) is 13.05%.

Insider Activity at Synchrony Financial

In other news, insider Jonathan S. Mothner sold 34,163 shares of the stock in a transaction that occurred on Friday, November 15th. The shares were sold at an average price of $64.99, for a total value of $2,220,253.37. Following the transaction, the insider now owns 127,587 shares in the company, valued at $8,291,879.13. This represents a 21.12 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Curtis Howse sold 21,934 shares of the stock in a transaction that occurred on Friday, November 1st. The stock was sold at an average price of $55.13, for a total transaction of $1,209,221.42. Following the completion of the transaction, the insider now owns 99,743 shares in the company, valued at $5,498,831.59. This trade represents a 18.03 % decrease in their position. The disclosure for this sale can be found here. 0.33% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

SYF has been the subject of a number of research reports. JMP Securities reiterated a “market outperform” rating and set a $60.00 target price on shares of Synchrony Financial in a research report on Monday, October 14th. BTIG Research lowered shares of Synchrony Financial from a “buy” rating to a “neutral” rating in a research report on Monday, September 16th. Morgan Stanley raised their target price on shares of Synchrony Financial from $37.00 to $40.00 and gave the company an “underweight” rating in a research note on Thursday, October 17th. Wells Fargo & Company lifted their price target on shares of Synchrony Financial from $53.00 to $60.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 17th. Finally, Robert W. Baird set a $62.00 price target on shares of Synchrony Financial in a research note on Thursday, October 17th. One investment analyst has rated the stock with a sell rating, eight have given a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $57.43.

Synchrony Financial 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.