Synchrony Financial (NYSE:SYF) has been the subject of much discussion among analysts in recent weeks. The financial services provider has seen some ups and downs lately, with several research reports differing on their recommendations for the stock. Simplicity Solutions LLC recently purchased a new position in shares of Synchrony Financial, adding to the ongoing debate about whether or not this is a worthwhile investment.
According to the most recent 13F filing with the Securities and Exchange Commission, Simplicity Solutions LLC bought 6,401 shares of Synchrony Financial’s stock in the fourth quarter at a value of approximately $210,000. This purchase comes as part of an overall strategy to diversify Simplicity’s holdings across various sectors.
Synchrony Financial also announced that it will pay out a quarterly dividend on May 12th. The dividend represents an annualized amount of $0.92 per share and yields around 3.11%. Shareholders who own SYF stock as of May 2nd will receive this payout on May 12th.
While many analysts are bullish on Synchrony Financial’s long-term prospects, others have expressed concern over its short-term outlook. Wells Fargo & Company recently lowered its price objective for SYF from $37 to $31 but still rated it “equal weight.” Credit Suisse Group also decreased their price target on SYF from $38 to $37 but set an “outperform” rating for the company. Meanwhile, Citigroup and BMO Capital Markets both maintained “buy” ratings for Synchrony Financial despite decreasing their price targets from $45 to $44 and $53 to $51 respectively.
Overall, there seems to be cautious optimism regarding Synchrony Financial’s future potential. While some analysts are wary about its current performance, others see promise in its long-term growth prospects. Nevertheless, investors should carefully consider all available information before making any decision to buy or sell SYF stock.
Hedge Funds and Institutional Investors Boost Positions in Synchrony Financial, Insider Shareholders Sell Holdings
Synchrony Financial, a financial services provider, has seen a boost in positions from various hedge funds and institutional investors. Hexagon Capital Partners LLC saw a 231.5% increase in their position during the 3rd quarter and now owns 948 shares worth $27,000 after purchasing an additional 662 shares. Similarly, Ronald Blue Trust Inc. increased its position by 157.4% and now owns 1,210 shares worth $33,000 after purchasing an additional 740 shares. Covestor Ltd saw a boost of 138.8%, and Allworth Financial LP increased by 85.9%. Institutional investors and hedge funds now own nearly all of the company’s stock.
In insider news, two key inside shareholders sold large portions of their holdings in late February and early March this year. Insider Alberto Casellas sold over $1 million worth of the firm’s stock at an average price of $36.14 per share while insider Bart Schaller sold over $400k worth of stock at an average price of $36.25 per share.
The company announced on May 12th that it will pay out a quarterly dividend to shareholders for the previous quarter; shareholders of record as of May 2nd will receive a dividend payment of $0.23 per share – this is representative of a dividend yield of around three percent annually based on current prices.
Synchrony Financial currently trades at $29.58 per share with a market cap of just over $12 billion US dollars; it maintains positive quick and current ratios despite having debt-to-equity ratio slightly over one (1) to one (1). The company’s fifty-two week low was slightly below $28 while its high was above $40 suggesting volatility exists within its pricing range.
On quarterly earnings data reported earlier this year (April), Synchrony experienced some negative results; they fell short on earnings per share by approximately $0.02 per share and posted lower revenue than previous estimates suggested. Despite these results, profit margins remained in a healthy range and industry analysts predict over $4.89 earning per share for the current year. All invested clients of SYF should continue to maintain a cautious eye on future quarterly reports and mitigate risk through diversification strategies: newly proposed trades should be thoroughly vetted before purchase.
