Quantbot Technologies LP significantly reduced its investment in Synchrony Financial (NYSE:SYF) by 76.2% during the second quarter of 2023, according to a recent filing with the Securities and Exchange Commission (SEC). The institutional investor now holds 35,673 shares after selling 114,008 shares throughout the quarter, with a current valuation of approximately $2.38 million. This change reflects a strategic adjustment in their investment portfolio.
Other institutional investors have also been active in trading Synchrony Financial shares. M&T Bank Corp increased its position by 4.6%, acquiring an additional 864 shares to reach a total of 19,585 shares valued at $1.31 million. Round Hill Asset Management boosted its stake by 16.9%, now owning 76,120 shares worth $5.08 million after purchasing 11,004 shares. Panagora Asset Management Inc. enhanced its holdings by 8.6%, bringing its total to 2,464,311 shares valued at $164.47 million. Similarly, Schroder Investment Management Group increased its position by 8.7%, now holding 940,115 shares, and Mackenzie Financial Corp raised its stake by 11.7%, owning 488,619 shares valued at $32.61 million. Notably, institutional investors and hedge funds collectively control 96.48% of Synchrony Financial’s stock.
As of the latest trading session, Synchrony Financial’s shares opened at $80.37. The company has a market capitalization of $28.95 billion and a price-to-earnings ratio of 8.77. Over the past year, the stock has fluctuated between a low of $40.54 and a high of $80.65, with a fifty-day moving average of $73.66 and a two-hundred day average of $70.42. Synchrony Financial maintains a debt-to-equity ratio of 0.91, alongside a quick ratio and current ratio of 1.24.
In a notable move, Synchrony Financial’s board announced a share buyback program on October 15, 2023, allowing the company to repurchase up to $1 billion in outstanding shares. This authorization permits the acquisition of as much as 3.7% of its shares, a sign that company leadership views its stock as undervalued.
The firm also declared a quarterly dividend of $0.30 per share, paid on November 17, 2023, to shareholders recorded on November 5, 2023. This translates to an annualized dividend of $1.20 and a dividend yield of 1.5%. Synchrony Financial’s dividend payout ratio stands at 13.10%.
Recent insider trading reveals that Curtis Howse, an insider, sold 12,086 shares on November 3, 2023, at an average price of $74.02, totaling approximately $894,606. Following this transaction, Howse retained 108,271 shares valued at around $8.01 million. Similarly, Director Arthur W. Coviello, Jr. sold 8,000 shares on the same day for approximately $591,440, reducing his holdings to 35,769 shares valued at $2.64 million. Over the last quarter, insiders sold a total of 55,075 shares, amounting to $4.04 million.
Research analysts have provided mixed reviews on Synchrony Financial. Truist Financial lowered its price target from $82.00 to $78.00, maintaining a “hold” rating. Conversely, JMP Securities raised its target from $77.00 to $88.00, while Wall Street Zen downgraded its rating from “buy” to “hold.” JPMorgan Chase & Co. reaffirmed a “neutral” rating with a price target of $75.00, down from $80.00. BTIG Research retained a “buy” rating with a target of $100.00. Currently, the stock holds an average rating of “Moderate Buy” with a consensus target price of $81.41.
Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States. It offers credit products, including credit cards, commercial credit products, and consumer installment loans, alongside various banking products such as certificates of deposit and individual retirement accounts. As institutional interest remains high, the company’s future performance will be closely watched by both investors and analysts alike.
