News Summary
The Teacher Retirement System of Texas has significantly reduced its investment in Synchrony Financial by 53.3%, holding now only 0.07% of shares. This move coincides with various strategic shifts in investments from other firms, sparking curiosity about the future of Synchrony amidst fluctuating market conditions. With a mixed bag of analyst ratings and a recent EPS that has surpassed expectations, investors are keen to interpret what this means for Synchrony’s next moves.
Texas Business News: Teacher Retirement System Sells Portion of Synchrony Financial Shares
The Teacher Retirement System of Texas (TRS) has significantly reduced its stake in Synchrony Financial (NYSE: SYF) by 53.3% during the first quarter of 2023, holding 274,542 shares after selling 312,768 shares in that period. This decreased stake is now valued at approximately $14.53 million, representing 0.07% of the financial services company.
In related developments, several other institutional investors have modified their positions in Synchrony Financial. TCTC Holdings LLC acquired a new stake valued at about $27,000 in the fourth quarter of 2022. Meanwhile, CVA Family Office LLC increased its stake by 355.9% during Q1 2023, owning 693 shares now worth $37,000 after acquiring an additional 541 shares. Accredited Wealth Management LLC and Rothschild Investment LLC have also made notable acquisitions, with the latter increasing its investment by 55.6%, now holding 862 shares valued at $46,000. Golden State Wealth Management LLC saw an expansive 503.7% increase in their holdings, now owning 972 shares valued at $51,000.
Overall, institutional investors and hedge funds overwhelmingly possess Synchrony Financial’s stock, holding 96.48% of total shares.
Market Activity and Financial Overview
As of the last trading session on Friday, Synchrony Financial’s stock rose by $0.78 to reach $70.25, with a total of 2,265,856 shares traded, slightly below the average volume of 3,875,644. The company’s market capitalization now stands at $26.74 billion, featuring a price-to-earnings (PE) ratio of 9.64, a P/E/G ratio of 0.73, and a beta of 1.46. Recently, the stock reached a 1-year high of $70.93 and a low of $40.55.
In the quarter ending April 22, 2023, Synchrony Financial reported earnings per share (EPS) of $1.89, outperforming the consensus estimate of $1.63. Revenue for this quarter totaled $3.72 billion, falling short of estimates set at $3.80 billion. The company recorded a return on equity of 19.68% and maintained a net margin of 13.00%. Analysts forecast an EPS of 7.67 for the current fiscal year.
Dividend Announcement and Ratings Changes
Synchrony Financial has announced a quarterly dividend of $0.30, raising it from a previously declared $0.25. This translates to an annualized dividend of $1.20, offering a yield of 1.71% with a payout ratio of 16.46%. The ex-dividend date was set to May 5, emphasizing the company’s commitment to returning value to its shareholders.
In terms of analyst sentiment, multiple firms have adjusted their price targets and ratings on Synchrony Financial. For instance, JPMorgan Chase & Co. lowered its target from $76.00 to $50.00 while maintaining an “overweight” rating. In contrast, Goldman Sachs increased its price objective from $70.00 to $78.00, sustaining a “buy” rating. Truist Financial also raised its target from $63.00 to $68.00, categorizing it as a “hold.” At present, eight research analysts have issued a “hold” rating, while twelve have assigned a “buy” rating, leading to a consensus rating of “Moderate Buy” with an average target price of $65.78.
Insider Transactions and Company Information
Recent insider transactions show that Curtis Howse sold 11,380 shares on June 24 at an average price of $65.00, totaling approximately $739,700. Meanwhile, Jonathan S. Mothner sold 40,639 shares on May 19 at an average price of $60.07 for around $2.44 million. Following these sales, Howse retained 108,062 shares valued at about $7 million, and Mothner maintained 146,628 shares worth approximately $8.8 million. Company insiders hold only about 0.32% of Synchrony Financial’s stock.
Synchrony Financial provides a variety of consumer financial services, including credit and deposit products, indicating that its performance is closely watched by shareholders and industry analysts alike.
Deeper Dive: News & Info About This Topic
- MarketBeat: Texas Retirement System Reduces Stake in Synchrony Financial
- Wikipedia: Synchrony Financial
- MarketWatch: Synchrony Financial Overview
- Reuters: Synchrony Financial
- The Motley Fool: Synchrony Financial Stock Update
- Encyclopedia Britannica: Financial Market
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