Bank of America Upgrades Synchrony Financial (NYSE:SYF) to “Buy”

Synchrony Financial (NYSE:SYF) was upgraded by equities research analysts at Bank of America from a “neutral” rating to a “buy” rating in a research note issued to investors on Friday, Marketbeat reports. The firm presently has a $54.00 target price on the financial services provider’s stock. Bank of America‘s price objective points to a potential upside of 15.95% from the company’s current price.

Other research analysts have also issued reports about the company. Barclays upped their price objective on Synchrony Financial from $46.00 to $49.00 and gave the company an “equal weight” rating in a report on Thursday, July 18th. TD Cowen raised their price target on shares of Synchrony Financial from $49.00 to $51.00 and gave the stock a “buy” rating in a research report on Thursday, April 25th. Royal Bank of Canada boosted their price objective on shares of Synchrony Financial from $50.00 to $55.00 and gave the company a “sector perform” rating in a report on Thursday, July 18th. 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. Finally, BMO Capital Markets cut their price target on Synchrony Financial from $42.00 to $41.00 and set a “market perform” rating for the company in a research note on Thursday, July 18th. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating, fifteen have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, Synchrony Financial has an average rating of “Moderate Buy” and a consensus target price of $50.41.

Synchrony Financial Stock Performance

SYF stock traded up $0.81 during trading hours on Friday, reaching $46.57. The stock had a trading volume of 3,053,042 shares, compared to its average volume of 4,185,289. The stock has a 50-day simple moving average of $46.72 and a 200 day simple moving average of $43.56. Synchrony Financial has a fifty-two week low of $27.30 and a fifty-two week high of $52.67. The stock has a market capitalization of $18.70 billion, a PE ratio of 6.68, a price-to-earnings-growth ratio of 1.04 and a beta of 1.63. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.23 and a quick ratio of 1.23.

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 the consensus estimate of $1.35 by $0.20. Synchrony Financial had a return on equity of 16.06% and a net margin of 13.52%. The firm had revenue of $5.58 billion for the quarter, compared to analyst estimates of $4.44 billion. During the same quarter in the prior year, the company earned $1.32 earnings per share. Analysts predict that Synchrony Financial will post 5.8 EPS for the current fiscal year.

Synchrony Financial announced that its Board of Directors has approved a share buyback plan on Wednesday, April 24th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the financial services provider to buy up to 5.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In related news, insider Bart Schaller sold 930 shares of the firm’s stock in a transaction that occurred on Thursday, August 1st. The stock was sold at an average price of $50.84, for a total transaction of $47,281.20. Following the completion of the sale, the insider now owns 49,390 shares of the company’s stock, valued at $2,510,987.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.33% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in SYF. Headlands Technologies LLC bought a new position in shares of Synchrony Financial in the first quarter valued at $28,000. International Assets Investment Management LLC acquired a new stake in shares of Synchrony Financial in the 2nd quarter worth about $33,000. WR Wealth Planners LLC raised its holdings in shares of 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. Ashton Thomas Private Wealth LLC bought a new position in Synchrony Financial in the 2nd quarter valued at about $39,000. Finally, Family Firm Inc. acquired a new position in Synchrony Financial during the 2nd quarter valued at about $42,000. 96.48% of the stock is owned by institutional investors and hedge funds.

Synchrony Financial Company 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.