Paloma Partners Management Co Takes $609,000 Position in Synchrony Financial (NYSE:SYF)

Paloma Partners Management Co acquired a new stake in shares of Synchrony Financial (NYSE:SYF) during the 1st quarter, HoldingsChannel.com reports. The institutional investor acquired 14,126 shares of the financial services provider’s stock, valued at approximately $609,000.

Several other institutional investors and hedge funds have also recently made changes to their positions in the stock. Fifth Third Bancorp raised its position in shares of Synchrony Financial by 0.7% during the 1st quarter. Fifth Third Bancorp now owns 38,247 shares of the financial services provider’s stock valued at $1,649,000 after buying an additional 250 shares in the last quarter. Gulf International Bank UK Ltd raised its position in Synchrony Financial by 0.7% in the 1st quarter. Gulf International Bank UK Ltd now owns 35,223 shares of the financial services provider’s stock worth $1,518,000 after purchasing an additional 262 shares during the period. Mutual of America Capital Management LLC raised its position in Synchrony Financial by 0.3% in the 1st quarter. Mutual of America Capital Management LLC now owns 90,343 shares of the financial services provider’s stock worth $3,896,000 after purchasing an additional 265 shares during the period. US Bancorp DE raised its position in Synchrony Financial by 0.8% in the 4th quarter. US Bancorp DE now owns 34,804 shares of the financial services provider’s stock worth $1,329,000 after purchasing an additional 268 shares during the period. Finally, MV Capital Management Inc. raised its position in Synchrony Financial by 8.3% in the 1st quarter. MV Capital Management Inc. now owns 3,509 shares of the financial services provider’s stock worth $151,000 after purchasing an additional 270 shares during the period. Hedge funds and other institutional investors own 96.48% of the company’s stock.

Synchrony Financial Stock Down 0.5 %

Synchrony Financial stock traded down $0.27 during trading hours on Monday, hitting $50.51. The stock had a trading volume of 1,643,162 shares, compared to its average volume of 4,190,745. The company has a quick ratio of 1.23, a current ratio of 1.23 and a debt-to-equity ratio of 1.09. The stock has a market capitalization of $19.96 billion, a P/E ratio of 7.25, a price-to-earnings-growth ratio of 1.19 and a beta of 1.63. Synchrony Financial has a 12-month low of $27.30 and a 12-month high of $52.67. The stock’s 50-day moving average price is $46.12 and its 200-day moving average price is $42.99.

Synchrony Financial (NYSE:SYF) last issued its earnings results on Wednesday, July 17th. The financial services provider reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.35 by $0.20. The business had revenue of $5.58 billion during the quarter, compared to analysts’ expectations of $4.44 billion. Synchrony Financial had a net margin of 13.52% and a return on equity of 16.06%. During the same period in the previous year, the company earned $1.32 earnings per share. Equities research analysts anticipate that Synchrony Financial will post 5.8 EPS for the current fiscal year.

Synchrony Financial declared that its board has authorized a stock repurchase plan on Wednesday, April 24th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the financial services provider to repurchase up to 5.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s leadership believes its shares are undervalued.

Synchrony Financial Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 15th. Shareholders of record on Monday, August 5th will be issued a $0.25 dividend. The ex-dividend date is Monday, August 5th. This represents a $1.00 annualized dividend and a yield of 1.98%. Synchrony Financial’s dividend payout ratio (DPR) is presently 14.35%.

Insiders Place Their Bets

In other news, insider Curtis Howse sold 31,562 shares of the business’s stock in a transaction that occurred on Thursday, May 2nd. The shares were sold at an average price of $45.00, for a total transaction of $1,420,290.00. Following the completion of the transaction, the insider now directly owns 121,042 shares of the company’s stock, valued at $5,446,890. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.33% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on SYF shares. StockNews.com raised shares of Synchrony Financial from a “hold” rating to a “buy” rating in a report on Friday, July 12th. Bank of America raised their price target on shares of Synchrony Financial from $51.00 to $56.00 and gave the stock a “neutral” rating in a report on Thursday, July 18th. Wolfe Research raised shares of Synchrony Financial from an “underperform” rating to an “outperform” rating and lifted their target price for the company from $36.00 to $50.00 in a research note on Thursday, April 4th. BMO Capital Markets cut their target price on shares of Synchrony Financial from $42.00 to $41.00 and set a “market perform” rating on the stock in a research note on Thursday, July 18th. Finally, Jefferies Financial Group lifted their target price on shares of Synchrony Financial from $50.00 to $55.00 and gave the company a “buy” rating in a research note on Tuesday, July 9th. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Synchrony Financial presently has a consensus rating of “Moderate Buy” and a consensus target price of $50.50.

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.