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

Paloma Partners Management Co bought a new stake in Synchrony Financial (NYSE:SYF) in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 14,126 shares of the financial services provider’s stock, valued at approximately $609,000.

Other large investors have also modified their holdings of the company. Raymond James & Associates boosted its holdings in Synchrony Financial by 29.4% in the fourth quarter. Raymond James & Associates now owns 325,697 shares of the financial services provider’s stock valued at $12,438,000 after purchasing an additional 74,080 shares during the last quarter. Unison Advisors LLC boosted its holdings in Synchrony Financial by 0.9% in the fourth quarter. Unison Advisors LLC now owns 101,814 shares of the financial services provider’s stock valued at $3,888,000 after purchasing an additional 859 shares during the last quarter. PFG Advisors purchased a new position in Synchrony Financial in the fourth quarter valued at about $224,000. Fifth Third Bancorp boosted its holdings in Synchrony Financial by 4.4% in the fourth quarter. Fifth Third Bancorp now owns 37,997 shares of the financial services provider’s stock valued at $1,451,000 after purchasing an additional 1,604 shares during the last quarter. Finally, Ballentine Partners LLC lifted its holdings in Synchrony Financial by 4.9% during the 4th quarter. Ballentine Partners LLC now owns 11,439 shares of the financial services provider’s stock worth $437,000 after buying an additional 534 shares during the last quarter. Institutional investors and hedge funds own 96.48% of the company’s stock.

Insider Activity at Synchrony Financial

In related news, insider Curtis Howse sold 31,562 shares of Synchrony Financial stock in a transaction on Thursday, May 2nd. The stock was sold at an average price of $45.00, for a total transaction of $1,420,290.00. Following the completion of the sale, the insider now owns 121,042 shares of the company’s stock, valued at $5,446,890. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 0.33% of the company’s stock.

Synchrony Financial Stock Down 0.5 %

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

Synchrony Financial (NYSE:SYF) last released its quarterly earnings data on Wednesday, July 17th. The financial services provider reported $1.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.35 by $0.20. The firm had revenue of $5.58 billion during the quarter, compared to analysts’ expectations of $4.44 billion. Synchrony Financial had a return on equity of 16.06% and a net margin of 13.52%. During the same quarter last year, the firm earned $1.32 earnings per share. As a group, sell-side analysts expect that Synchrony Financial will post 5.8 earnings per share for the current year.

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

Synchrony Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 15th. Investors of record on Monday, August 5th will be given a dividend of $0.25 per share. The ex-dividend date is Monday, August 5th. This represents a $1.00 dividend on an annualized basis and a yield of 1.98%. Synchrony Financial’s payout ratio is 14.35%.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. Wolfe Research raised Synchrony Financial from an “underperform” rating to an “outperform” rating and increased their target price for the stock from $36.00 to $50.00 in a report on Thursday, April 4th. Compass Point assumed coverage on Synchrony Financial in a report on Tuesday, July 16th. They set a “buy” rating and a $56.00 target price on the stock. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and set a $62.00 target price on shares of Synchrony Financial in a report on Tuesday, June 11th. BTIG Research began coverage on Synchrony Financial in a report on Friday, June 7th. They issued a “buy” rating and a $60.00 price target on the stock. Finally, JPMorgan Chase & Co. raised their target price on Synchrony Financial from $46.00 to $52.00 and gave the company a “neutral” rating in a research report on Monday, July 8th. One research analyst has rated the stock with a sell rating, nine have given a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $50.50.

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.