Synchrony Financial (NYSE:SYF) Shares Gap Up – Still a Buy?

Synchrony Financial (NYSE:SYF) shares gapped up before the market opened on Thursday . The stock had previously closed at $63.59, but opened at $66.77. Synchrony Financial shares last traded at $65.27, with a volume of 462,215 shares trading hands.

Analyst Ratings Changes

SYF has been the topic of several analyst reports. JPMorgan Chase & Co. raised shares of Synchrony Financial from a “neutral” rating to an “overweight” rating and boosted their price target for the company from $59.00 to $72.00 in a report on Monday, December 9th. JMP Securities reaffirmed a “market outperform” rating and set a $60.00 price objective on shares of Synchrony Financial in a report on Monday, October 14th. Royal Bank of Canada upped their price target on Synchrony Financial from $55.00 to $62.00 and gave the company a “sector perform” rating in a research report on Thursday, October 17th. BTIG Research cut Synchrony Financial from a “buy” rating to a “neutral” rating in a report on Monday, September 16th. Finally, Wells Fargo & Company upgraded shares of Synchrony Financial from an “equal weight” rating to an “overweight” rating and increased their target price for the stock from $60.00 to $85.00 in a research report on Tuesday, December 3rd. Six equities research analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, Synchrony Financial presently has an average rating of “Moderate Buy” and an average price target of $63.63.

Synchrony Financial Stock Performance

The stock has a 50 day moving average price of $62.11 and a two-hundred day moving average price of $52.67. The company has a market cap of $24.98 billion, a P/E ratio of 8.37, a price-to-earnings-growth ratio of 0.82 and a beta of 1.63. The company has a quick ratio of 1.25, a current ratio of 1.25 and a debt-to-equity ratio of 1.06.

Synchrony Financial (NYSE:SYF) last posted its earnings results on Wednesday, October 16th. The financial services provider reported $1.94 earnings per share 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 the consensus estimate of $3.76 billion. During the same quarter last year, the firm earned $1.48 earnings per share. The company’s revenue was up 9.8% on a year-over-year basis. On average, research analysts predict that Synchrony Financial will post 6.51 earnings per share for the current fiscal year.

Synchrony Financial Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, November 15th. Investors of record on Monday, November 4th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 1.56%. The ex-dividend date was Monday, November 4th. Synchrony Financial’s dividend payout ratio (DPR) is currently 13.05%.

Insiders Place Their Bets

In related news, insider Jonathan S. Mothner sold 34,163 shares of the firm’s stock in a transaction on Friday, November 15th. The stock was sold at an average price of $64.99, for a total transaction of $2,220,253.37. Following the completion of the transaction, the insider now directly 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 at this hyperlink. Also, insider Curtis Howse sold 21,934 shares of the 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 completion of the sale, the insider now directly owns 99,743 shares of the company’s stock, valued at approximately $5,498,831.59. The trade was a 18.03 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Synchrony Financial

A number of hedge funds have recently bought and sold shares of SYF. Larson Financial Group LLC raised its position in Synchrony Financial by 92.7% in the 3rd quarter. Larson Financial Group LLC now owns 607 shares of the financial services provider’s stock valued at $30,000 after buying an additional 292 shares during the last quarter. Altshuler Shaham Ltd purchased a new position in Synchrony Financial during the second quarter worth about $31,000. International Assets Investment Management LLC bought a new stake in Synchrony Financial in the 2nd quarter worth about $33,000. WR Wealth Planners LLC increased its holdings in Synchrony Financial by 83.6% in the 2nd quarter. WR Wealth Planners LLC now owns 716 shares of the financial services provider’s stock worth $34,000 after acquiring an additional 326 shares during the last quarter. Finally, Ashton Thomas Private Wealth LLC bought a new stake in shares of Synchrony Financial in the second quarter valued at approximately $39,000. Institutional investors own 96.48% of the company’s stock.

About Synchrony Financial

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.