Share Repurchase Program Approved by Synchrony Financial (NYSE:SYF)

Synchrony Financial (NYSE:SYF) announced that its Board of Directors has authorized a share buyback program on Wednesday, April 24th, RTT News reports. The company plans to buyback $1.00 billion in outstanding shares. This buyback authorization allows the financial services provider to reacquire up to 5.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its shares are undervalued.

Synchrony Financial Price Performance

Shares of NYSE:SYF traded down $0.36 during trading on Thursday, reaching $44.66. 4,711,195 shares of the company’s stock traded hands, compared to its average volume of 4,524,034. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 1.21. Synchrony Financial has a fifty-two week low of $26.59 and a fifty-two week high of $45.33. The company has a 50-day simple moving average of $41.56 and a 200-day simple moving average of $36.76. The firm has a market cap of $18.17 billion, a PE ratio of 8.62, a P/E/G ratio of 1.06 and a beta of 1.61.

Synchrony Financial (NYSE:SYF) last announced its earnings results on Wednesday, April 24th. The financial services provider reported $1.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.37 by ($0.19). The company had revenue of $5.57 billion during the quarter, compared to analyst estimates of $4.44 billion. Synchrony Financial had a net margin of 10.68% and a return on equity of 17.37%. During the same quarter last year, the business earned $1.35 EPS. As a group, analysts predict that Synchrony Financial will post 5.57 earnings per share for the current year.

Synchrony Financial Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 15th. Investors of record on Monday, May 6th will be issued a $0.25 dividend. The ex-dividend date is Friday, May 3rd. This represents a $1.00 annualized dividend and a dividend yield of 2.24%. Synchrony Financial’s dividend payout ratio is presently 19.31%.

Wall Street Analyst Weigh In

A number of research firms recently commented on SYF. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Synchrony Financial in a research note on Wednesday, January 10th. They issued a “buy” rating and a $56.00 target price for the company. Morgan Stanley restated an “underweight” rating and issued a $30.00 target price on shares of Synchrony Financial in a research note on Thursday, February 8th. Oppenheimer reiterated a “market perform” rating on shares of Synchrony Financial in a research note on Wednesday, March 6th. Bank of America raised their price objective on Synchrony Financial from $43.00 to $44.00 and gave the stock a “neutral” rating in a research note on Thursday. Finally, Stephens upped their target price on Synchrony Financial from $40.00 to $46.00 and gave the company an “equal weight” rating in a research report on Wednesday, January 24th. One equities research analyst has rated the stock with a sell rating, eleven have assigned a hold rating and eight have assigned a buy rating to the stock. According to data from MarketBeat.com, Synchrony Financial has an average rating of “Hold” and a consensus target price of $42.72.

Insiders Place Their Bets

In other Synchrony Financial news, insider Brian D. Doubles sold 134,696 shares of Synchrony Financial stock in a transaction dated Tuesday, March 5th. The shares were sold at an average price of $41.26, for a total transaction of $5,557,556.96. Following the transaction, the insider now directly owns 660,353 shares of the company’s stock, valued at $27,246,164.78. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, insider Brian D. Doubles sold 134,696 shares of the company’s stock in a transaction that occurred on Tuesday, March 5th. The shares were sold at an average price of $41.26, for a total value of $5,557,556.96. Following the transaction, the insider now directly owns 660,353 shares in the company, valued at approximately $27,246,164.78. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Curtis Howse sold 6,179 shares of the firm’s stock in a transaction dated Friday, March 15th. The shares were sold at an average price of $42.82, for a total value of $264,584.78. Following the transaction, the insider now owns 152,604 shares of the company’s stock, valued at $6,534,503.28. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 148,158 shares of company stock valued at $6,106,106. Insiders own 0.65% of the company’s stock.

About Synchrony Financial

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.