Piper Sandler cuts Synchrony Financial (NYSE:SYF) price target to $42.00


Synchrony Financial (NYSE: SYFGet a rating) had its price target reduced by Piper Sandler from $49.00 to $42.00 in a research note released Wednesday morning, Fly reports. The brokerage currently has an overweight rating on shares of the financial services provider.

Other research analysts have also recently published reports on the company. Goldman Sachs Group raised its price target on Synchrony Financial from $40.00 to $45.00 and gave the stock a buy rating in a Tuesday, April 19 research note. Wells Fargo & Company lowered its price target on Synchrony Financial from $52.00 to $45.00 and set an overweight rating for the company in a Wednesday, April 6 research note. StockNews.com upgraded Synchrony Financial from a hold rating to a buy rating in a Monday, June 20 research rating. Bank of America reduced its price target on Synchrony Financial from $52.00 to $45.00 in a Thursday, March 17 research note. Finally, Wolfe Research downgraded Synchrony Financial from a peer performer rating to an underperformer rating and set a price target of $22.00 for the company. in a research note on Thursday, May 12. One financial analyst gave the stock a sell rating, five gave the stock a hold rating and thirteen gave the stock a buy rating. According to MarketBeat, Synchrony Financial currently has an average moderate buy rating and a consensus target price of $50.61.

SYF-share opened at $28.53 on Wednesday. The company has a current ratio of 1.24, a quick ratio of 1.18 and a debt ratio of 1.05. The company has a market capitalization of $14.31 billion, a P/E ratio of 3.87, a P/E/G ratio of 0.23 and a beta of 1.43. Synchrony Financial has a 12-month low of $27.40 and a 12-month high of $52.49. The stock’s 50-day simple moving average is $34.14 and its 200-day simple moving average is $39.21.

Synchrony Financial (NYSE: SYFGet a rating) last released its quarterly results on Monday, April 18. The financial services provider reported earnings per share (EPS) of $1.73 for the quarter, beating the consensus estimate of $1.53 by $0.20. The company posted revenue of $3.79 billion for the quarter, versus analyst estimates of $2.66 billion. Synchrony Financial had a return on equity of 29.99% and a net margin of 26.26%. During the same period a year earlier, the company posted EPS of $1.73. On average, research analysts expect Synchrony Financial to post EPS of 5.63 for the current fiscal year.

Synchrony Financial announced that its board of directors approved a share buyback plan on Monday, April 18 that authorizes the company to repurchase $2.80 billion in stock. This repurchase authorization authorizes the financial services provider to repurchase up to 13.6% of its shares through purchases on the open market. Stock buyback plans are usually an indication that the company’s management believes its stock is undervalued.

The company also recently announced a quarterly dividend, which was paid on Thursday, May 12. Shareholders of record on Monday, May 2 received a dividend of $0.22 per share. 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 dividend payout ratio is 11.94%.

Hedge funds and other institutional investors have recently changed their positions in the company. LPL Financial LLC increased its holdings of Synchrony Financial shares by 14.6% during the third quarter. LPL Financial LLC now owns 96,771 shares of the financial services provider valued at $4,730,000 after purchasing an additional 12,341 shares in the last quarter. Pinnacle Associates Ltd. increased its stake in Synchrony Financial by 4.7% in the 4th quarter. Pinnacle Associates Ltd. now owns 23,294 shares of the financial services provider worth $1,081,000 after acquiring an additional 1,050 shares last quarter. Fifth Third Bancorp increased its stake in Synchrony Financial by 5.3% in the fourth quarter. Fifth Third Bancorp now owns 43,676 shares of the financial services provider worth $2,026,000 after acquiring 2,197 additional shares last quarter. Marshall Wace LLP increased its stake in Synchrony Financial by 8,460.7% in Q4. Marshall Wace LLP now owns 3,147,770 shares of the financial services provider worth $146,028,000 after acquiring an additional 3,111,000 shares last quarter. Finally, Highland Capital Management LLC increased its stake in Synchrony Financial by 0.3% in the 1st quarter. Highland Capital Management LLC now owns 164,686 shares of the financial services provider worth $5,733,000 after acquiring an additional 560 shares in the last quarter. 98.26% of the shares are held by institutional investors and hedge funds.

About Synchrony Financial (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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