Synchrony Financial (NYSE:SYF) Sees Significant Increase in Short Interest

Synchrony Financial (NYSE:SYF) was the recipient of a significant growth in short interest in February. As of February 15th, there was short interest totalling 12,450,000 shares, a growth of 33.3% from the January 31st total of 9,340,000 shares. Based on an average daily trading volume, of 3,540,000 shares, the days-to-cover ratio is presently 3.5 days. Currently, 3.2% of the company’s stock are sold short.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on SYF. Compass Point cut Synchrony Financial from a “buy” rating to a “neutral” rating and set a $70.00 price objective on the stock. in a research note on Tuesday, January 28th. Royal Bank of Canada upped their price objective on Synchrony Financial from $70.00 to $73.00 and gave the company a “sector perform” rating in a research note on Wednesday, January 29th. Bank of America increased their price target on Synchrony Financial from $82.00 to $85.00 and gave the stock a “buy” rating in a research report on Tuesday, January 28th. Barclays upgraded Synchrony Financial from an “equal weight” rating to an “overweight” rating and increased their price target for the stock from $59.00 to $79.00 in a research report on Monday, January 6th. Finally, JPMorgan Chase & Co. upgraded Synchrony Financial from a “neutral” rating to an “overweight” rating and increased their price target for the stock from $59.00 to $72.00 in a research report on Monday, December 9th. Seven analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, Synchrony Financial presently has an average rating of “Moderate Buy” and an average target price of $69.30.

Hedge Funds Weigh In On Synchrony Financial

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bogart Wealth LLC bought a new position in Synchrony Financial during the 4th quarter valued at $26,000. TCTC Holdings LLC bought a new position in Synchrony Financial during the 4th quarter valued at $27,000. Larson Financial Group LLC boosted its stake in Synchrony Financial by 92.7% during the 3rd quarter. Larson Financial Group LLC now owns 607 shares of the financial services provider’s stock valued at $30,000 after purchasing an additional 292 shares in the last quarter. Y.D. More Investments Ltd lifted its position in shares of Synchrony Financial by 111.5% during the 4th quarter. Y.D. More Investments Ltd now owns 480 shares of the financial services provider’s stock valued at $31,000 after acquiring an additional 253 shares during the last quarter. Finally, Accredited Wealth Management LLC acquired a new stake in shares of Synchrony Financial during the 4th quarter valued at $38,000. 96.48% of the stock is owned by institutional investors.

Synchrony Financial Stock Performance

SYF stock traded down $1.89 on Tuesday, reaching $56.13. The company’s stock had a trading volume of 6,001,301 shares, compared to its average volume of 3,799,896. Synchrony Financial has a 52 week low of $39.67 and a 52 week high of $70.93. The company has a market capitalization of $21.82 billion, a P/E ratio of 6.57, a price-to-earnings-growth ratio of 0.71 and a beta of 1.63. The firm has a fifty day moving average of $65.60 and a two-hundred day moving average of $59.91. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.24 and a quick ratio of 1.24.

Synchrony Financial (NYSE:SYF) last issued its quarterly earnings results on Tuesday, January 28th. The financial services provider reported $1.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.89 by $0.02. Synchrony Financial had a return on equity of 18.30% and a net margin of 15.36%. As a group, analysts predict that Synchrony Financial will post 7.67 EPS for the current fiscal year.

Synchrony Financial Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, February 18th. Shareholders of record on Monday, February 3rd were paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 1.78%. The ex-dividend date of this dividend was Monday, February 3rd. Synchrony Financial’s payout ratio is currently 11.71%.

Synchrony Financial Company Profile

Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States. It provides credit products, such as credit cards, commercial credit products, and consumer installment loans. The company also offers private label credit cards, dual co-brand and general purpose credit cards, short- and long-term installment loans, and consumer banking products; and deposit products, including certificates of deposit, individual retirement accounts, money market accounts, and savings accounts, and sweep and affinity deposits, as well as accepts deposits through third-party securities brokerage firms.