Traders Buy High Volume of Synchrony Financial Call Options (NYSE:SYF)

Synchrony Financial (NYSE:SYF) was the recipient of unusually large options trading on Thursday. Investors purchased 8,058 call options on the company. This is an increase of approximately 436% compared to the typical volume of 1,502 call options.

Synchrony Financial Trading Up 0.8%

Shares of Synchrony Financial stock opened at $71.52 on Friday. The company’s fifty day moving average price is $76.89 and its two-hundred day moving average price is $74.02. The firm has a market capitalization of $23.27 billion, a PE ratio of 7.33, a price-to-earnings-growth ratio of 0.61 and a beta of 1.35. Synchrony Financial has a 52-week low of $63.08 and a 52-week high of $88.77. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.22 and a quick ratio of 1.22.

Synchrony Financial (NYSE:SYF) last announced its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $2.59 EPS for the quarter, topping analysts’ consensus estimates of $2.14 by $0.45. Synchrony Financial had a net margin of 15.44% and a return on equity of 23.09%. The firm had revenue of $3.72 billion during the quarter, compared to analysts’ expectations of $3.72 billion. During the same quarter last year, the company earned $2.50 earnings per share. Synchrony Financial has set its FY 2026 guidance at 9.250-9.500 EPS. On average, analysts expect that Synchrony Financial will post 9.37 EPS for the current year.

Synchrony Financial Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, August 17th. Stockholders of record on Wednesday, August 5th were paid a $0.34 dividend. The ex-dividend date was Wednesday, August 5th. This represents a $1.36 annualized dividend and a dividend yield of 1.9%. This is a boost from Synchrony Financial’s previous quarterly dividend of $0.30. Synchrony Financial’s dividend payout ratio is presently 13.93%.

Hedge Funds Weigh In On Synchrony Financial

Several institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in Synchrony Financial in the second quarter worth $2,349,452,000. Bank of America Corp DE acquired a new position in shares of Synchrony Financial during the second quarter valued at $1,122,961,000. Dimensional Fund Advisors LP boosted its stake in shares of Synchrony Financial by 6.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 6,039,753 shares of the financial services provider’s stock valued at $410,760,000 after purchasing an additional 365,353 shares during the last quarter. First Trust Advisors LP boosted its stake in shares of Synchrony Financial by 5.6% in the 1st quarter. First Trust Advisors LP now owns 5,338,110 shares of the financial services provider’s stock valued at $363,098,000 after purchasing an additional 281,451 shares during the last quarter. Finally, Assetmark Inc. grew its position in shares of Synchrony Financial by 0.9% during the 1st quarter. Assetmark Inc. now owns 4,338,604 shares of the financial services provider’s stock worth $295,112,000 after buying an additional 37,114 shares during the period. 96.48% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. Wells Fargo & Company decreased their price objective on shares of Synchrony Financial from $95.00 to $88.00 and set an “overweight” rating for the company in a report on Wednesday, July 22nd. UBS Group upped their price target on shares of Synchrony Financial from $84.00 to $87.00 and gave the company a “neutral” rating in a report on Monday, August 3rd. JPMorgan Chase & Co. dropped their price objective on Synchrony Financial from $81.00 to $78.00 and set a “neutral” rating on the stock in a research note on Monday, July 13th. Weiss Ratings reissued a “buy (b-)” rating on shares of Synchrony Financial in a research report on Friday, July 17th. Finally, Robert W. Baird boosted their price objective on Synchrony Financial from $86.00 to $90.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 22nd. Nine equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $89.00.

Synchrony Financial Company Profile

Synchrony Financial (NYSE: SYF) is a consumer financial services company that provides credit products and related services through partnerships with retailers, manufacturers, healthcare providers and other businesses. The company is best known for private-label credit cards and dual-use credit cards that allow consumers to finance purchases with participating brands.

Synchrony’s offerings also include promotional financing, installment loans and other consumer payment solutions. Its products support spending across areas such as retail, home improvement, consumer electronics, healthcare, automotive and lifestyle purchases.