Fifth Third Bancorp reduces its position in Synchrony Financial (NYSE:SYF)
Fifth Third Bancorp reduced its holdings of Synchrony Financial shares (NYSE: SYF – Get a rating) by 10.5% during the 1st quarter, according to the company in its most recent Form 13F filed with the Securities & Exchange Commission. The fund held 39,096 shares of the financial services provider after selling 4,580 shares during the quarter. Fifth Third Bancorp’s holdings in Synchrony Financial were worth $1,361,000 when it last filed with the Securities & Exchange Commission.
Other hedge funds and other institutional investors have also increased or reduced their stakes in the company. Pinnacle Associates Ltd. increased its stake in Synchrony Financial by 4.7% during the fourth quarter. Pinnacle Associates Ltd. now owns 23,294 shares of the financial services provider valued at $1,081,000 after purchasing an additional 1,050 shares in the last quarter. Marshall Wace LLP increased its holdings in Synchrony Financial by 8,460.7% during the fourth quarter. Marshall Wace LLP now owns 3,147,770 shares of the financial services provider valued at $146,028,000 after purchasing an additional 3,111,000 shares in the last quarter. Highland Capital Management LLC increased its position in Synchrony Financial shares by 0.3% during the first quarter. Highland Capital Management LLC now owns 164,686 shares of the financial services provider valued at $5,733,000 after purchasing an additional 560 shares during the period. Everence Capital Management Inc. increased its position in Synchrony Financial shares by 92.2% during the first quarter. Everence Capital Management Inc. now owns 20,720 shares of the financial services provider valued at $721,000 after purchasing an additional 9,940 shares during the period. Finally, Foster & Motley Inc. increased its position in Synchrony Financial shares by 20.7% during the fourth quarter. Foster & Motley Inc. now owns 33,990 shares of the financial services provider valued at $1,577,000 after purchasing an additional 5,820 shares during the period. 98.26% of the shares are currently held by institutional investors and hedge funds.
Several research companies have recently weighed in on SYF. Bank of America cut its price target on Synchrony Financial shares from $52.00 to $45.00 in a Thursday, March 17 report. StockNews.com downgraded Synchrony Financial from a “buy” rating to a “hold” rating in a Thursday, June 30 research report. BMO Capital Markets raised its price target on Synchrony Financial shares from $49.00 to $52.00 and gave the company an “outperform” rating in a Tuesday, April 19 research report. Goldman Sachs Group raised its price target on Synchrony Financial from $40.00 to $45.00 and gave the company a “buy” rating in a Tuesday, April 19 research note. Finally, Morgan Stanley downgraded Synchrony Financial from an “overweight” rating to an “equally weighted” rating and reduced its price target for the company from $56.00 to $40.00 in a Monday 28 research note. march. One investment analyst gave the stock a sell rating, six gave the company a hold rating and twelve gave the company a buy rating. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $50.61.
Shares of NYSE SYF opened at $28.59 on Tuesday. The company has a debt ratio of 1.05, a quick ratio of 1.18 and a current ratio of 1.24. The company has a market capitalization of $14.34 billion, a PE ratio of 3.88, a P/E/G ratio of 0.22 and a beta of 1.52. The company has a 50-day simple moving average of $33.51 and a two-hundred-day simple moving average of $38.71. Synchrony Financial has a fifty-two week low of $27.22 and a fifty-two week high of $52.49.
Synchrony Financial (NYSE: SYF – Get a rating) last released its quarterly results on Monday, April 18. The financial services provider reported earnings per share of $1.73 for the quarter, beating the consensus estimate of $1.53 by $0.20. The company posted revenue of $3.79 billion in the quarter, versus a consensus estimate of $2.66 billion. Synchrony Financial had a return on equity of 29.99% and a net margin of 26.26%. In the same quarter last year, the company earned earnings per share of $1.73. On average, sell-side analysts expect Synchrony Financial to post earnings per share of 5.63 for the current fiscal year.
Synchrony Financial said its board launched a stock buyback program on Monday, April 18 that allows the company to repurchase $2.80 billion worth of stock. This repurchase authorization allows the financial services provider to repurchase up to 13.6% of its shares through purchases on the open market. Stock buyback programs usually indicate that the management of the company believes that its shares are undervalued.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 12. Shareholders of record on Monday, May 2 received a dividend of $0.22. This represents an annualized dividend of $0.88 and a dividend yield of 3.08%. The ex-dividend date was Friday, April 29. Synchrony Financial’s payout ratio is 11.94%.
Synchrony financial profile (Get a rating)
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 cards, co-branded 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 for retail and commercial customers, as well as deposits through brokerage firms in third-party securities.
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