Synchrony Financial (NYSE:SYF) Hits New 12-Month High – What’s Next?

Synchrony Financial (NYSE:SYF)’s stock price reached a new 52-week high on Tuesday . The company traded as high as $69.67 and last traded at $69.47, with a volume of 150662 shares changing hands. The stock had previously closed at $68.75.

Wall Street Analyst Weigh In

SYF has been the topic of a number of analyst reports. Jefferies Financial Group increased their price objective on shares of Synchrony Financial from $60.00 to $65.00 and gave the stock a “buy” rating in a research note on Thursday, October 17th. Keefe, Bruyette & Woods lifted their price target on Synchrony Financial from $62.00 to $82.00 and gave the company an “outperform” rating in a research note on Monday, December 9th. StockNews.com upgraded shares of Synchrony Financial from a “hold” rating to a “buy” rating in a report on Wednesday, October 9th. Royal Bank of Canada boosted their target price on shares of Synchrony Financial from $55.00 to $62.00 and gave the stock a “sector perform” rating in a report on Thursday, October 17th. Finally, Barclays upgraded shares of Synchrony Financial from an “equal weight” rating to an “overweight” rating and lifted their price target for the stock from $59.00 to $79.00 in a report on Monday, January 6th. Seven research analysts have rated the stock with a hold rating, seventeen have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, Synchrony Financial has a consensus rating of “Moderate Buy” and a consensus price target of $65.45.

Synchrony Financial Stock Performance

The company has a market capitalization of $27.02 billion, a price-to-earnings ratio of 9.06, a P/E/G ratio of 0.81 and a beta of 1.64. The company has a 50 day moving average price of $66.34 and a 200 day moving average price of $56.24. The company has a debt-to-equity ratio of 1.06, a quick ratio of 1.25 and a current ratio of 1.25.

Synchrony Financial Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, November 15th. Stockholders of record on Monday, November 4th were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.44%. The ex-dividend date of this dividend was Monday, November 4th. Synchrony Financial’s payout ratio is 13.05%.

Insiders Place Their Bets

In other news, insider Jonathan S. Mothner sold 34,163 shares of the firm’s stock in a transaction that occurred on Friday, November 15th. The stock was sold at an average price of $64.99, for a total value of $2,220,253.37. Following the transaction, the insider now owns 127,587 shares in the company, valued at $8,291,879.13. This trade represents a 21.12 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Curtis Howse sold 21,934 shares of the company’s stock in a transaction on Friday, November 1st. The stock was sold at an average price of $55.13, for a total value of $1,209,221.42. Following the sale, the insider now owns 99,743 shares of the company’s stock, valued at $5,498,831.59. This trade represents a 18.03 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.33% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Southpoint Capital Advisors LP lifted its holdings in Synchrony Financial by 37.9% during the third quarter. Southpoint Capital Advisors LP now owns 4,600,000 shares of the financial services provider’s stock worth $229,448,000 after acquiring an additional 1,265,000 shares during the period. Zurich Insurance Group Ltd FI grew its position in Synchrony Financial by 389.8% during the third quarter. Zurich Insurance Group Ltd FI now owns 1,138,672 shares of the financial services provider’s stock valued at $56,797,000 after buying an additional 906,172 shares during the period. Soros Fund Management LLC purchased a new stake in Synchrony Financial during the third quarter worth about $41,088,000. AQR Capital Management LLC raised its position in Synchrony Financial by 14.6% in the second quarter. AQR Capital Management LLC now owns 5,726,704 shares of the financial services provider’s stock worth $264,917,000 after acquiring an additional 727,649 shares during the period. Finally, Assenagon Asset Management S.A. boosted its stake in Synchrony Financial by 589.3% in the third quarter. Assenagon Asset Management S.A. now owns 644,203 shares of the financial services provider’s stock valued at $32,133,000 after acquiring an additional 550,750 shares during the last quarter. 96.48% of the stock is owned by institutional investors.

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.