Synchrony Financial (NYSE:SYF) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday.
According to Zacks, “Synchrony Financial’s shares have underperformed the industry year to date. The company has been witnessing a steep rise in its expenses since 2013. This continuous rise in expenses has severely weighed on its bottom line. Moreover, the company suffers from increasing allowance for loan losses that has been increasing due to the rapid growth in its loan portfolio. This is likely to impact the company’s risk profile adversely. In addition, the company also suffers from rising fraud-related losses due to its exposure to risk of fraudulent activities associated with partners, customers and third parties handling customer information. The company has seen its Zacks Consensus Estimate for 2018 earnings being revised downward in the last 30 days.”
Other equities analysts also recently issued reports about the company. TheStreet upgraded Synchrony Financial from a “c” rating to a “b” rating in a research report on Monday, July 31st. BMO Capital Markets reiterated a “buy” rating and set a $40.00 price objective on shares of Synchrony Financial in a research report on Friday, August 25th. Jefferies Group LLC reiterated a “buy” rating and set a $40.00 price objective on shares of Synchrony Financial in a research report on Friday, July 14th. Instinet reiterated a “buy” rating and set a $35.00 price objective (down from $38.00) on shares of Synchrony Financial in a research report on Wednesday, July 12th. Finally, BidaskClub upgraded Synchrony Financial from a “hold” rating to a “buy” rating in a research report on Saturday, June 17th. One analyst has rated the stock with a sell rating, nine have issued a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the company. The stock currently has an average rating of “Buy” and a consensus target price of $37.61.
Synchrony Financial (NYSE:SYF) opened at 29.47 on Monday. The stock’s 50 day moving average price is $29.92 and its 200-day moving average price is $30.47. The stock has a market capitalization of $23.44 billion, a P/E ratio of 11.07 and a beta of 1.01. Synchrony Financial has a 52 week low of $26.01 and a 52 week high of $38.06.
Synchrony Financial (NYSE:SYF) last issued its earnings results on Friday, July 21st. The financial services provider reported $0.61 EPS for the quarter, beating the Zacks’ consensus estimate of $0.58 by $0.03. Synchrony Financial had a return on equity of 15.30% and a net margin of 13.84%. The company had revenue of $3.64 billion during the quarter, compared to the consensus estimate of $3.59 billion. During the same period in the previous year, the firm posted $0.58 earnings per share. Equities research analysts expect that Synchrony Financial will post $2.60 earnings per share for the current year.
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In related news, Director Paget Leonard Alves purchased 2,000 shares of the company’s stock in a transaction on Monday, July 24th. The shares were bought at an average price of $30.85 per share, with a total value of $61,700.00. Following the completion of the acquisition, the director now owns 8,521 shares of the company’s stock, valued at $262,872.85. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.03% of the stock is currently owned by corporate insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its holdings in shares of Synchrony Financial by 1.9% in the second quarter. Vanguard Group Inc. now owns 52,233,692 shares of the financial services provider’s stock valued at $1,557,609,000 after buying an additional 956,331 shares in the last quarter. BlackRock Inc. increased its holdings in shares of Synchrony Financial by 2,275.1% in the first quarter. BlackRock Inc. now owns 48,272,035 shares of the financial services provider’s stock valued at $1,655,730,000 after buying an additional 46,239,640 shares in the last quarter. FMR LLC increased its holdings in shares of Synchrony Financial by 27.1% in the second quarter. FMR LLC now owns 36,964,054 shares of the financial services provider’s stock valued at $1,102,267,000 after buying an additional 7,874,689 shares in the last quarter. Berkshire Hathaway Inc. bought a new position in shares of Synchrony Financial in the second quarter valued at $520,747,000. Finally, First Eagle Investment Management LLC increased its holdings in shares of Synchrony Financial by 1.2% in the second quarter. First Eagle Investment Management LLC now owns 17,303,205 shares of the financial services provider’s stock valued at $515,982,000 after buying an additional 197,074 shares in the last quarter. 87.05% of the stock is currently owned by institutional investors.
Synchrony Financial Company Profile
Synchrony Financial is a consumer financial services company. The Company provides a range of credit products through programs it has established with a group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers. The Company’s revenue activities are managed through three sales platforms: Retail Card, Payment Solutions and CareCredit.
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