Synchrony Financial (NYSE:SYF) Reaches New 12-Month High – Still a Buy?

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

Analysts Set New Price Targets

Several research firms have recently commented on SYF. StockNews.com raised shares of Synchrony Financial from a “hold” rating to a “buy” rating in a research report on Wednesday, October 9th. 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. Barclays boosted their price target on Synchrony Financial from $49.00 to $59.00 and gave the stock an “equal weight” rating in a research report on Thursday, October 17th. JMP Securities reaffirmed a “market outperform” rating and set a $60.00 price objective on shares of Synchrony Financial in a research report on Monday, October 14th. Finally, Jefferies Financial Group boosted their target price on Synchrony Financial from $60.00 to $65.00 and gave the stock a “buy” rating in a report on Thursday, October 17th. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, Synchrony Financial currently has a consensus rating of “Moderate Buy” and a consensus target price of $57.43.

Synchrony Financial Stock Up 0.4 %

The company has a quick ratio of 1.25, a current ratio of 1.25 and a debt-to-equity ratio of 1.06. The company has a market cap of $26.29 billion, a PE ratio of 8.81, a PEG ratio of 0.93 and a beta of 1.59. The company’s fifty day moving average is $57.60 and its 200-day moving average is $50.51.

Synchrony Financial (NYSE:SYF) last released its quarterly 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. The firm had revenue of $3.81 billion for the quarter, compared to the consensus estimate of $3.76 billion. Synchrony Financial had a return on equity of 16.64% and a net margin of 13.98%. The company’s revenue for the quarter was up 9.8% on a year-over-year basis. During the same period last year, the business posted $1.48 EPS. On average, analysts predict that Synchrony Financial will post 6.52 EPS for the current year.

Synchrony Financial Dividend Announcement

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

Insider Buying and Selling

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

Institutional Trading of Synchrony Financial

Hedge funds and other institutional investors have recently modified their holdings of the company. Swedbank AB increased its stake in Synchrony Financial by 23.8% in the 2nd quarter. Swedbank AB now owns 99,461 shares of the financial services provider’s stock worth $4,694,000 after buying an additional 19,098 shares in the last quarter. Cetera Investment Advisers bought a new stake in Synchrony Financial during the 1st quarter valued at approximately $2,192,000. National Pension Service lifted its holdings in Synchrony Financial by 22.7% in the 3rd quarter. National Pension Service now owns 957,758 shares of the financial services provider’s stock worth $47,773,000 after purchasing an additional 177,051 shares in the last quarter. QRG Capital Management Inc. boosted its stake in Synchrony Financial by 17.2% in the 2nd quarter. QRG Capital Management Inc. now owns 287,547 shares of the financial services provider’s stock worth $13,569,000 after purchasing an additional 42,293 shares during the period. Finally, Alpha DNA Investment Management LLC purchased a new stake in Synchrony Financial during the 2nd quarter valued at approximately $951,000. 96.48% of the stock is owned by hedge funds and other institutional investors.

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.