Twin Capital Management Inc. Cuts Stock Position in Synchrony Financial (NYSE:SYF)

Twin Capital Management Inc. decreased its holdings in Synchrony Financial (NYSE:SYF) by 6.3% in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 34,614 shares of the financial services provider’s stock after selling 2,346 shares during the quarter. Twin Capital Management Inc.’s holdings in Synchrony Financial were worth $1,493,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in SYF. Nordea Investment Management AB raised its position in Synchrony Financial by 33.5% in the 1st quarter. Nordea Investment Management AB now owns 2,685,598 shares of the financial services provider’s stock valued at $115,266,000 after purchasing an additional 674,366 shares in the last quarter. Meeder Asset Management Inc. raised its holdings in Synchrony Financial by 98.6% in the first quarter. Meeder Asset Management Inc. now owns 23,859 shares of the financial services provider’s stock valued at $1,029,000 after acquiring an additional 11,846 shares in the last quarter. Sei Investments Co. lifted its stake in Synchrony Financial by 52.6% in the first quarter. Sei Investments Co. now owns 490,147 shares of the financial services provider’s stock worth $21,134,000 after acquiring an additional 168,920 shares during the last quarter. Mitsubishi UFJ Trust & Banking Corp grew its holdings in Synchrony Financial by 3.1% during the 1st quarter. Mitsubishi UFJ Trust & Banking Corp now owns 998,350 shares of the financial services provider’s stock worth $42,011,000 after acquiring an additional 30,366 shares in the last quarter. Finally, Los Angeles Capital Management LLC increased its position in shares of Synchrony Financial by 62.1% in the 1st quarter. Los Angeles Capital Management LLC now owns 302,337 shares of the financial services provider’s stock valued at $13,037,000 after purchasing an additional 115,790 shares during the last quarter. Institutional investors and hedge funds own 96.48% of the company’s stock.

Synchrony Financial Stock Performance

Shares of Synchrony Financial stock traded down $0.93 during trading hours on Wednesday, hitting $49.88. 2,126,949 shares of the company were exchanged, compared to its average volume of 4,234,248. The company has a current ratio of 1.23, a quick ratio of 1.23 and a debt-to-equity ratio of 1.09. The business has a 50-day moving average of $45.72 and a 200-day moving average of $42.70. Synchrony Financial has a 1 year low of $27.30 and a 1 year high of $52.67. The stock has a market capitalization of $19.71 billion, a price-to-earnings ratio of 7.16, a P/E/G ratio of 1.19 and a beta of 1.63.

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

Synchrony Financial announced that its board has approved a share repurchase program 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 reacquire up to 5.5% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its shares are undervalued.

Synchrony Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 15th. Shareholders of record on Monday, August 5th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 2.00%. The ex-dividend date of this dividend is Monday, August 5th. Synchrony Financial’s payout ratio is 14.35%.

Insider Transactions at Synchrony Financial

In related news, insider Curtis Howse sold 31,562 shares of Synchrony Financial stock in a transaction that occurred on Thursday, May 2nd. The stock was sold at an average price of $45.00, for a total value of $1,420,290.00. Following the sale, the insider now directly owns 121,042 shares in the company, valued at $5,446,890. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Company insiders own 0.33% of the company’s stock.

Analysts Set New Price Targets

Several research firms have recently issued reports on SYF. Baird R W raised shares of Synchrony Financial to a “strong-buy” rating in a research report on Friday, June 28th. Wells Fargo & Company lifted their price target on Synchrony Financial from $49.00 to $53.00 and gave the stock an “equal weight” rating in a report on Thursday, July 18th. The Goldman Sachs Group increased their price objective on Synchrony Financial from $49.00 to $56.00 and gave the company a “buy” rating in a report on Thursday, July 18th. Keefe, Bruyette & Woods reissued an “outperform” rating and set a $62.00 target price on shares of Synchrony Financial in a research report on Tuesday, June 11th. Finally, Jefferies Financial Group upped their price target on Synchrony Financial from $50.00 to $55.00 and gave the company a “buy” rating in a report on Tuesday, July 9th. One research analyst has rated the stock with a sell rating, nine have given a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, Synchrony Financial currently has an average rating of “Moderate Buy” and a consensus target price of $50.50.

Synchrony Financial 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.