A look into Synchrony Financial (SYF)’s deeper side

Synchrony Financial (NYSE: SYF) stock fell -1.99% on Wednesday to $30.06 against a previous-day closing price of $30.67. With 4.87 million shares changed hands, the volume of the stock remained lighter than its average volume of 6.07 million shares. During the session, the Credit Services company that operates in wider Financial sector, reached to the highest price of $30.51 whereas the lowest price it dropped to was $29.97. The 52-week range on SYF shows that it touched its highest point at $40.88 and its lowest point at $26.59 during that stretch. It currently has a 1-year price target of $36.84. With its current market cap of 12.87 billion, SYF has annualized dividend of $0.92 while the current yield stands at 3.06%. Beta for the stock currently stands at 1.57.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SYF was up-trending over the past week, with a rise of 4.52%, but this was up by 3.16% over a month. Three-month performance dropped to -16.31% while six-month performance fell -17.19%. The stock lost -11.85% in the past year, while it has lost -8.52% so far this year. A look at the trailing 12-month EPS for SYF yields 5.68 with Next year EPS estimates of 5.33. For the next quarter, that number is 1.25. This implies an EPS growth rate of -16.20% for this year and 8.58% for next year. EPS is expected to decline by -3.62% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 18.60%.

Float and Shares Shorts:

At present, 434.40 million SYF shares are outstanding with a float of 425.45 million shares on hand for trading. On Apr 27, 2023, short shares totaled 13.39 million, which was 3.12% higher than short shares on Mar 30, 2023. In addition to Mr. Brian D. Doubles as the firm’s Pres, CEO & Director, Mr. Brian J. Wenzel Sr. serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 100.83% of SYF’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.52% of SYF, in contrast to 39.18% held by mutual funds. Shares owned by individuals account for 0.81%. As the largest shareholder in SYF with 12.85% of the stake, The Vanguard Group, Inc. holds 55,053,178 shares worth 55,053,178. A second-largest stockholder of SYF, Capital Research & Management Co, holds 45,088,025 shares, controlling over 10.52% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in SYF, holding 22,833,654 shares or 5.33% stake. With a 5.17% stake in SYF, the American Balanced Fund is the largest stakeholder. A total of 22,145,238 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.16% of SYF stock, is the second-largest Mutual Fund holder. It holds 13,552,304 shares valued at 399.93 million. American Funds Income Fund of Ame holds 2.64% of the stake in SYF, owning 11,302,951 shares worth 333.55 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SYF since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With SYF analysts setting a high price target of $51.00 and a low target of $24.00, the average target price over the next 12 months is $36.43. Based on these targets, SYF could surge 69.66% to reach the target high and fall by -20.16% to reach the target low. Reaching the average price target will result in a growth of 21.19% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded SYF stock several times over the past three months with 19 Buys and 31 Sells. In these transactions, 410,922 shares were bought while 365,771 shares were sold. The number of buy transactions has increased to 123 while that of sell transactions has risen to 49 over the past year. The total number of shares bought during that period was 1,136,684 while 860,125 shares were sold.

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