Synchrony Financial (NYSE:SYF) Sets New 12-Month High – Time to Buy?

Synchrony Financial (NYSE:SYF)’s share price reached a new 52-week high on Friday . The company traded as high as $68.69 and last traded at $67.61, with a volume of 164536 shares. The stock had previously closed at $67.22.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on SYF. Barclays increased their price target on shares of Synchrony Financial from $49.00 to $59.00 and gave the company an “equal weight” rating in a report on Thursday, October 17th. Deutsche Bank Aktiengesellschaft boosted their target price on Synchrony Financial from $58.00 to $68.00 and gave the company a “buy” rating in a research report on Thursday, October 17th. BTIG Research downgraded Synchrony Financial from a “buy” rating to a “neutral” rating in a research report on Monday, September 16th. TD Cowen increased their target price on shares of Synchrony Financial from $60.00 to $62.00 and gave the company a “buy” rating in a research note on Thursday, October 17th. Finally, Wells Fargo & Company upped their price target on shares of Synchrony Financial from $53.00 to $60.00 and gave the company an “equal weight” rating in a report on Thursday, October 17th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $57.43.

Synchrony Financial Price Performance

The stock’s 50 day simple moving average is $57.26 and its 200-day simple moving average is $50.31. The firm has a market cap of $26.27 billion, a price-to-earnings ratio of 8.78, 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 issued its earnings results on Wednesday, October 16th. The financial services provider reported $1.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.77 by $0.17. Synchrony Financial had a return on equity of 16.64% and a net margin of 13.98%. The company had revenue of $3.81 billion during the quarter, compared to analyst estimates of $3.76 billion. During the same quarter last year, the business posted $1.48 EPS. The firm’s quarterly revenue was up 9.8% on a year-over-year basis. Equities research analysts anticipate that Synchrony Financial will post 6.52 EPS for the current fiscal year.

Synchrony Financial Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, November 15th. Shareholders of record on Monday, November 4th were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 1.48%. The ex-dividend date of this dividend was Monday, November 4th. Synchrony Financial’s dividend payout ratio is presently 13.05%.

Insider Buying and Selling at Synchrony Financial

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

Institutional Trading of Synchrony Financial

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Swedbank AB grew its position in shares of Synchrony Financial by 23.8% during the 2nd quarter. Swedbank AB now owns 99,461 shares of the financial services provider’s stock valued at $4,694,000 after acquiring an additional 19,098 shares during the period. Cetera Investment Advisers purchased a new stake in shares of Synchrony Financial in the first quarter valued at approximately $2,192,000. National Pension Service raised its stake in shares of Synchrony Financial by 22.7% during the 3rd quarter. National Pension Service now owns 957,758 shares of the financial services provider’s stock worth $47,773,000 after buying an additional 177,051 shares during the period. QRG Capital Management Inc. lifted its position in shares of Synchrony Financial by 17.2% during the 2nd quarter. QRG Capital Management Inc. now owns 287,547 shares of the financial services provider’s stock valued at $13,569,000 after buying an additional 42,293 shares in the last quarter. Finally, Alpha DNA Investment Management LLC acquired a new stake in Synchrony Financial in the 2nd quarter valued at $951,000. Institutional investors and hedge funds 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.