Power Corp of Canada significantly increased its holdings in Synchrony Financial during the first quarter of this year, according to a recent disclosure filed with the Securities and Exchange Commission. The institutional investor acquired an additional 129,224 shares, boosting its position by an impressive 1,510.2%. At the end of the quarter, Power Corp of Canada owned a total of 137,781 shares of Synchrony Financial, which were valued at $3,863,000.
Synchrony Financial (NYSE:SYF) recently reported its quarterly earnings data for the period ending on July 18th. During this time, the financial services provider surpassed analysts’ consensus estimates by posting $1.32 earnings per share for the quarter. This exceeded expectations by $0.07 per share. Additionally, Synchrony Financial achieved a return on equity of 19.79% and had a net margin of 12.90%. The company generated revenue amounting to $5.08 billion for the quarter compared to the consensus estimate of $4.10 billion. However, these figures represent a decrease from last year’s same period earnings per share valued at $1.60.
Various equities research analysts have recently issued reports on Synchrony Financial’s performance and prospects for future growth. For example, StockNews.com downgraded their rating from “buy” to “hold” in a research note released on September 5th. Similarly, Oppenheimer also adjusted their rating for Synchrony Financial from “outperform” to “market perform” on July 14th. Royal Bank of Canada followed suit and downgraded their rating from “outperform” to “sector perform.” They also decreased their price objective for the stock from $41.00 to $37.00 on September 5th.
Conversely, UBS Group raised their price objective for Synchrony Financial from $35.00 to $37.00 and assigned a “neutral” rating in a research note on July 19th. Finally, Citigroup reduced their price target from $44.00 to $43.00 on June 2nd. Currently, Bloomberg.com indicates that Synchrony Financial holds an average consensus rating of “Hold,” with a consensus target price of $37.00.
As we move forward, industry experts predict that Synchrony Financial will post an estimated earnings per share of 5.04 for the remainder of this year. These predictions are based on the company’s solid performance during the first quarter and market analysis conducted by research analysts.
In summary, Power Corp of Canada significantly increased its holdings in Synchrony Financial during the first quarter, demonstrating confidence in the financial services provider’s future prospects. Synchrony Financial’s recent quarterly earnings report exceeded expectations and showcased strong financial performance. Although some equities research analysts have downgraded their ratings for the stock, others maintain their positive outlook for the company’s future growth potential.
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Institutional Investor Activity and Insider Transactions Impact Synchrony Financial’s Stock
September 13, 2023
Synchrony Financial Witnesses Fluctuations in Institutional Investor Activity
In recent news revolving around Synchrony Financial, several large investors have made significant transactions involving the company’s stock. Delphia USA Inc., for example, increased its stake in Synchrony Financial by 3.1% during the fourth quarter of the previous fiscal year. The company now owns approximately 9,578 shares of Synchrony Financial, amounting to a value of $315,000 after purchasing an additional 287 shares in the last quarter.
Northwestern Mutual Wealth Management Co. also raised its position in Synchrony Financial by 8.9% during the fourth quarter, now owning approximately 3,673 shares valued at $121,000 after purchasing an additional 301 shares during this period.
Additionally, Meiji Yasuda Asset Management Co Ltd. witnessed a boost of 2.3% in its position regarding Synchrony Financial shares during the second quarter. The company currently holds around 15,310 shares valued at $423,000 after acquiring an additional 351 shares within that period.
Assetmark Inc., another institutional investor involved with Synchrony Financial, experienced a rise in its position by 5.6% during the fourth quarter. Currently holding approximately 6,670 shares with an estimated value of $219,000 after acquiring an additional 354 shares within that period.
Finally, Ascent Group LLC concluded a gain of 5.3% in their position involving Synchrony Financial throughout the fourth quarter as well; they presently own approximately 7,569 shares valued at $249 ,000 after purchasing an additional 379 shares in that same period.
What is especially interesting to note here is that institutional investors collectively hold about 94.72% of all outstanding stocks belonging to Synchrony Financial as per latest records.
In other news related to Synchrony Financial, it has been revealed that a significant insider sale occurred involving David P. Melito, who sold 15,015 shares of the company’s stock at an average price of $35.00. This transaction amounted to a total value of $525,525. Following this sale, David P. Melito now owns 13,960 shares valued at approximately $488,600. Further details of this transaction can be found in the legal filing with the Securities & Exchange Commission.
David P. Melito was not the only insider involved in recent transactions pertaining to Synchrony Financial stock. Insider Brian D. Doubles sold 36,610 shares on Tuesday, August 1st at an average price of $34.50 per share for a total value of $1,263,045. Following the sale, Insider Brian D. Doubles retains ownership of 565,240 shares directly within the company with an estimated value of $19,500 ,780.
Given all these developments and transactions involving insiders and institutional investors in Synchrony Financial stock, it is essential to also assess the current market situation for further understanding.
As of Wednesday’s opening trading session on September 13th,Synchrony Financial shares began trading at $32.28 each; noteworthy given its proximity to the company’s fifty-day simple moving average calculation which rests at $33.69 per share.Similarly,the two hundred day simple moving average stands close at $31.83.
Additionally,the company demonstrates healthy financial leverage; with a debt-to-equity ratio of around 1:13,the company appears adequately equipped with liquidity.The quick ratio suggests sufficient short-term assets are available when required.
It is crucial to note that Synchrony Financial has experienced fluctuations in its stock valuation over recent times.Within the past twelve months,the stock reached its lowest level at approximately$26 .59 and reached its highest peak touching nearly$40 .88.
Presently, Synchrony Financial holds a market capitalization valued at $13.50 billion.As per the latest indications, the company maintains a price-earnings ratio of 5.98 and a beta of 1.60.This information allows investors and analysts to gauge the stock’s performance in relation to industry benchmarks and overall market conditions.
In conclusion, the recent activities by institutional investors and insiders within Synchrony Financial have caused fluctuations in share positions. It remains to be seen how these developments will influence the future trajectory of the company’s financial performance amidst current market trends.
Sources:
SEC filing with Securities & Exchange Commission – available via SEC website:
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(Disclaimer: The above article is for informational purposes only and should not be considered as financial advice. Please consult with a professional advisor.)
