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

Southpoint Capital Advisors LP reduced its position in Synchrony Financial (NYSE:SYF) by 13.0% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 4,000,000 shares of the financial services provider’s stock after selling 600,000 shares during the quarter. Synchrony Financial makes up about 6.1% of Southpoint Capital Advisors LP’s holdings, making the stock its largest position. Southpoint Capital Advisors LP owned about 1.03% of Synchrony Financial worth $260,000,000 at the end of the most recent reporting period.

A number of other large investors have also bought and sold shares of the company. Twinbeech Capital LP purchased a new stake in Synchrony Financial in the fourth quarter worth $2,689,000. Tidal Investments LLC increased its position in Synchrony Financial by 39.6% in the fourth quarter. Tidal Investments LLC now owns 92,642 shares of the financial services provider’s stock worth $6,022,000 after buying an additional 26,281 shares during the last quarter. State of Wyoming increased its position in Synchrony Financial by 55.7% in the fourth quarter. State of Wyoming now owns 9,797 shares of the financial services provider’s stock worth $637,000 after buying an additional 3,503 shares during the last quarter. Toronto Dominion Bank increased its position in Synchrony Financial by 57.9% in the fourth quarter. Toronto Dominion Bank now owns 209,123 shares of the financial services provider’s stock worth $13,593,000 after buying an additional 76,723 shares during the last quarter. Finally, Sachem Head Capital Management LP purchased a new stake in Synchrony Financial in the fourth quarter worth $142,838,000. 96.48% of the stock is owned by hedge funds and other institutional investors.

Synchrony Financial Price Performance

NYSE:SYF opened at $60.88 on Monday. The firm has a market capitalization of $23.17 billion, a price-to-earnings ratio of 7.13, a P/E/G ratio of 0.71 and a beta of 1.42. Synchrony Financial has a 52-week low of $40.55 and a 52-week high of $70.93. The stock has a fifty day moving average of $52.10 and a 200 day moving average of $60.41. The company has a debt-to-equity ratio of 1.01, a quick ratio of 1.24 and a current ratio of 1.24.

Synchrony Financial (NYSE:SYF) last issued its quarterly earnings results on Tuesday, April 22nd. The financial services provider reported $1.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.63 by $0.26. Synchrony Financial had a return on equity of 18.30% and a net margin of 15.36%. The firm had revenue of $3.72 billion during the quarter, compared to analyst estimates of $3.80 billion. On average, research analysts expect that Synchrony Financial will post 7.67 EPS for the current fiscal year.

Synchrony Financial Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, May 15th. Shareholders of record on Monday, May 5th were paid a dividend of $0.30 per share. The ex-dividend date was Monday, May 5th. This represents a $1.20 annualized dividend and a yield of 1.97%. This is a positive change from Synchrony Financial’s previous quarterly dividend of $0.25. Synchrony Financial’s payout ratio is 16.46%.

Analysts Set New Price Targets

Several brokerages have recently weighed in on SYF. Evercore ISI reduced their price target on Synchrony Financial from $64.00 to $56.00 and set an “outperform” rating for the company in a research report on Wednesday, April 23rd. Truist Financial reduced their price target on Synchrony Financial from $65.00 to $57.00 and set a “hold” rating for the company in a research report on Friday, April 25th. Compass Point cut Synchrony Financial from a “buy” rating to a “neutral” rating and set a $70.00 price target for the company. in a research report on Tuesday, January 28th. Cfra Research upgraded Synchrony Financial to a “hold” rating in a research report on Tuesday, April 22nd. Finally, Wells Fargo & Company reduced their price target on Synchrony Financial from $70.00 to $65.00 and set an “overweight” rating for the company in a research report on Wednesday, April 23rd. Nine investment analysts have rated the stock with a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, Synchrony Financial has an average rating of “Moderate Buy” and a consensus price target of $63.95.

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.