Fintel reports that on April 4, 2024, Wolfe Research upgraded their outlook for Synchrony Financial (NYSE:SYF) from Underperform to Outperform.

Analyst Price Forecast Suggests 6.28% Upside

As of March 31, 2024, the average one-year price target for Synchrony Financial is 43.80. The forecasts range from a low of 30.30 to a high of $60.90. The average price target represents an increase of 6.28% from its latest reported closing price of 41.21.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Synchrony Financial is 17,107MM, an increase of 123.27%. The projected annual non-GAAP EPS is 5.63.

Synchrony Financial Declares $0.25 Dividend

On January 24, 2024 the company declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of February 5, 2024 received the payment on February 15, 2024. Previously, the company paid $0.25 per share.

At the current share price of $41.21 / share, the stock's dividend yield is 2.43%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.73%, the lowest has been 1.70%, and the highest has been 6.88%. The standard deviation of yields is 0.77 (n=234).

The current dividend yield is 0.39 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.18. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.14%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 1476 funds or institutions reporting positions in Synchrony Financial. This is an increase of 60 owner(s) or 4.24% in the last quarter. Average portfolio weight of all funds dedicated to SYF is 0.20%, an increase of 12.34%. Total shares owned by institutions increased in the last three months by 1.46% to 454,437K shares. The put/call ratio of SYF is 1.20, indicating a bearish outlook.

What are Other Shareholders Doing?

Capital World Investors holds 44,535K shares representing 10.95% ownership of the company. In it's prior filing, the firm reported owning 44,535K shares, representing a decrease of 0.00%. The firm increased its portfolio allocation in SYF by 12.16% over the last quarter.

ABALX - AMERICAN BALANCED FUND holds 22,145K shares representing 5.44% ownership of the company. No change in the last quarter.

Bank Of America holds 21,983K shares representing 5.40% ownership of the company. In it's prior filing, the firm reported owning 24,534K shares, representing a decrease of 11.60%. The firm decreased its portfolio allocation in SYF by 73.10% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 12,941K shares representing 3.18% ownership of the company. In it's prior filing, the firm reported owning 12,931K shares, representing an increase of 0.08%. The firm increased its portfolio allocation in SYF by 11.72% over the last quarter.

AMECX - INCOME FUND OF AMERICA holds 11,303K shares representing 2.78% ownership of the company. No change in the last quarter.

Synchrony Financial Background Information
(This description is provided by the company.)

Synchrony is a premier consumer financial services company. The Company delivers a wide range of specialized financing programs, as well as innovative consumer banking products, across key industries including digital, retail, home, auto, travel, health and pet. Synchrony enables its partners to grow sales and loyalty with consumers. It's one of the largest issuers of private label credit cards in the United States; it also offers co-branded products, installment loans and consumer financing products for small- and medium-sized businesses, as well as healthcare providers.