Synchrony Financial (SYF) Shares: Cheap or Risky?

Synchrony Financial (NYSE:SYF) saw an upside of 1.48% to $49.78 after adding $0.72 on Tuesday. The 5-day average trading volume is 3,378,277 shares of the company’s common stock. It has gained $50.78 in the past week. An average of 4,452,319 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 4,567,706.

SYF’s 1-month performance is 3.68% or $2.37 on its low of $46.31 reached on 09/20/21. The company’s shares have touched a 52-week low of $24.47 and high of $52.20, with the stock’s rally to the 52-week high happening on 09/28/21. YTD, SYF has achieved 41.34% or $14.98. However, the current price is down -4.63%% from the 52-week high price.


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Insider Transactions

On Sep 01, 41 days have gone by since the last insider trading activity for Synchrony Financial (SYF). Casellas Alberto (See remarks) most recently sold 39,977 shares at $49.09 per share on Sep 01. This transaction cost the insider $1,962,471. See remarks, QUINDLEN THOMAS M, sold 44,731 shares at a price of $49.09 on Sep 01. Then, on Sep 01, See remarks MOTHNER JONATHAN S sold 31,401 shares at a price of $49.09 per share. This transaction amounted to $1,541,475.

Valuation Metrics

The company’s PE ratio for the last five years has touched a high of 19.00 and a low of 2.306. SYF stock has a beta of 1.78. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 1.83 while the price-to-book (PB) in the most recent quarter is 2.10, with the price to cash flow ratio at 4.38.

Synchrony Financial pays an annual dividend of $0.88 per share. Its dividend yield is 1.77% and the payout ratio is 15.60%. SYF’s most recent quarterly dividend payment was made on Aug. 12, when it paid $0.22 a share compared with prior rate of $0.22, down 0.0% from last year’s. The company has boosted its dividend for the last 1 consecutive years with the latest dividend increase of $0.01 reported on Wednesday July 24 2019. Measured over the last 3 years, the Dividend has been growing by 57.14% yearly.

It is projected that Synchrony Financial’s next ex-dividend date will be on 1-Nov. SYF is expected to distribute $0.22 as its next dividend.

As well, the company’s long term debt to equity for the quarter ending June 29 was 1.00, while the total debt to equity was 1.00 while for the period ending June 29; Synchrony Financial’s operating margin was 97.40%. The firm’s gross profit as reported stood at $14.4 billion against revenue of $16.07 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Analysts expected SYF to announce $1.43 per share in earnings in its latest quarter, but it posted $2.12, representing a 48.30% surprise. SYF stock balance sheet for the quarter ending June 29 shows that, with total debt at $13.46 billion. Shareholders hold equity totaling $569.7 million

Technical Picture

Let’s look briefly at Synchrony Financial (SYF) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 11 October was 51.60% to suggest the stock is trending Neutral, with historical volatility in this time period at 25.09%.

The stock’s 5-day moving average is $49.63, reflecting a -0.95% or -$0.47 change from its current price. SYF is currently trading +4.21% above its 20-day SMA, +8.58% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by +6.05% and +46.30% respectively.

Stochastic %K and %D was 35.01% and 45.59% and the average true range (ATR) pointed at 1.36. The RSI (14) points at 51.83%, while the 14-day stochastic is at 27.52% with the period’s ATR at 1.39. The stock’s 9-day MACD Oscillator is pointing at -0.07 and -0.42 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Synchrony Financial (NYSE: SYF), Seaport Global Securities launched coverage with a Buy rating. Analysts offering their rating for SYF stock have a consensus rating for the stock as Overweight. Currently, 1 brokerage advisors rate SYF as a “sell,”, while 3 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 0 rates the stock as overweight while 17 have offered a “buy” rating.

What is SYF’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $49.00 and a high of $67.00, with their median price target at $58.00. Looking at these predictions, the average price target given by analysts is for Synchrony Financial (SYF) stock is $58.00.

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