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Synchrony Financial (NYSE: SYF) Is A Risk Capital Investor’s Play

In the last trading session, 7.09 million Synchrony Financial (NYSE:SYF) shares changed hands as the company’s beta touched 1.60. With the company’s per share price at $32.52 changed hands at $0.23 or 0.71% during last session, the market valuation stood at $13.50B. SYF’s last price was a discount, traded about -25.71% off its 52-week high of $40.88. The share price had its 52-week low at $26.59, which suggests the last value was 18.23% up since then. When we look at Synchrony Financial’s average trading volume, we note the 10-day average is 4.03 million shares, with the 3-month average coming to 4.01 million.

Analysts gave the Synchrony Financial (SYF) stock a consensus recommendation rating of an Overweight, calculated at a mean rating of 2.60. If we narrow down to specifics, the data shows that 3 out of 21 analysts rate the stock as a Sell, with a further 1 assigning it an Overweight rating. Of the remaining, 9 recommended SYF as a Hold, 8 felt it is a Buy and 0 rated the stock as Underweight. Synchrony Financial’s EPS for the current quarter is expected to be $1.49.

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Synchrony Financial (NYSE:SYF) trade information

Instantly SYF was in green as seen at the end of in last trading. With action 3.96%, the performance over the past five days has been green. The jump to weekly highs of 32.80 on Friday, 09/15/23 added 0.71% to the stock’s daily price. The company’s shares are showing year-to-date downside of -1.03%, with the 5-day performance at 3.96% in the green. However, in the 30-day time frame, Synchrony Financial (NYSE:SYF) is -1.06% down. Looking at the short shares, we see there were 13.35 million shares sold at short interest cover period of 4.31 days.

The consensus price target for the stock as assigned by Wall Street analysts is $38.83, meaning bulls need an upside of 16.25% from its current market value. According to analyst projections, SYF’s forecast low is $29.00 with $55.00 as the target high. To hit the forecast high, the stock’s price needs a -69.13% plunge from its current level, while the stock would need to tank 10.82% for it to hit the projected low.

Synchrony Financial (SYF) estimates and forecasts

Data shows that the Synchrony Financial share is performing relatively much not better than most of its peers within the same industry. As can be gleaned from the statistics, the company’s share value shot 11.52% over the past 6 months, a -17.89% in annual growth rate that is considerably lower than the industry average of 1.20%. Moreover, analysts have looked to higher expectations by upgrading its fiscal year 2023 revenue estimates. The rating firms predict current quarter revenue for Synchrony Financial will rise 1.40%, while the growth in revenue is estimated to hit -23.80% for the next quarter. Year-over-year growth is forecast to reach 8.30% up from the last financial year.

Consensus estimates given by 11 financial analysts project the company’s revenue in the current quarter to hit an average of $4.3 billion. 11 analysts are of the opinion that Synchrony Financial’s revenue for the quarter ending Dec 2023 will be $4.44 billion. The company’s revenue for the corresponding quarters a year ago was $3.89 billion and $4.11 billion respectively. According to analysts, the company will likely register a growth in its current quarter sales, forecast at 10.40%. The estimates for the next quarter sales put growth at 8.00%.

Looking at the company’s year-on-year earnings, data shows that the past 5-year has an earnings growth rate of 18.60%. The 2023 estimates are for Synchrony Financial earnings to decrease by -16.20%, but the outlook for the next 5-year period is at -3.62% per year.

SYF Dividends

Synchrony Financial is expected to release its next quarterly earnings report in October. The 3.08% annual yield figure for the share gives it an annual dividend of 1.00. It is important to note, however, that the 3.08% dividend yield ratio should serve as a guide only, as you should also take into consideration many other aspects of a company’s operations and fundamentals before making any investment decision.

Synchrony Financial (NYSE:SYF)’s Major holders

If we look at who the major shareholders are, we find that insiders hold 0.59% of Synchrony Financial shares while 99.94% of the shares are in the hands of institutional holders. The share float percentage for the stock currently stands at 100.53%. There are 99.94% institutions holding the Synchrony Financial stock share, with Vanguard Group Inc the top institutional holder. As of Jun 29, 2023, the company held 13.04% of the shares, roughly 54.53 million SYF shares worth $1.85 billion.

Capital World Investors holds the second largest percentage of outstanding shares, with 10.78% or 45.09 million shares worth $1.53 billion as of Jun 29, 2023.

Among Mutual Funds, the top two as of Jun 29, 2023 were American Balanced Fund and Vanguard Total Stock Market Index Fund. With 22.15 million shares estimated at $751.17 million under it, the former controlled 5.30% of total outstanding shares. On the other hand, Vanguard Total Stock Market Index Fund held about 3.18% of the shares, roughly 13.28 million shares worth around $450.52 million.

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