The stock of Synchrony Financial (NYSE: SYF) has decreased by -3.18 when compared to last closing price of 43.12. Despite this, the company has experienced a 0.48% gain in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-03-27 that Synchrony’s (SYF) product innovations, streamlining initiatives, partnerships and rising purchase volumes poise it well for growth.
Is It Worth Investing in Synchrony Financial (NYSE: SYF) Right Now?
Synchrony Financial (NYSE: SYF) has a higher price-to-earnings ratio of 8.06x compared to its average ratio. SYF has 36-month beta value of 1.61. Analysts have mixed views on the stock, with 10 analysts rating it as a “buy,” 5 as “overweight,” 6 as “hold,” and 0 as “sell.”
The public float for SYF is 403.80M, and currently, short sellers hold a 2.90% ratio of that float. The average trading volume of SYF on April 02, 2024 was 4.49M shares.
SYF’s Market Performance
SYF stock saw an increase of 0.48% in the past week, with a monthly gain of 1.09% and a quarterly increase of 8.81%. The volatility ratio for the week is 2.02%, and the volatility levels for the last 30 days are 2.29% for Synchrony Financial (SYF). The simple moving average for the last 20 days is -0.77% for SYF stock, with a simple moving average of 20.10% for the last 200 days.
Analysts’ Opinion of SYF
Many brokerage firms have already submitted their reports for SYF stocks, with Morgan Stanley repeating the rating for SYF by listing it as a “Underweight.” The predicted price for SYF in the upcoming period, according to Morgan Stanley is $30 based on the research report published on February 08, 2024 of the current year 2024.
Deutsche Bank, on the other hand, stated in their research note that they expect to see SYF reach a price target of $56. The rating they have provided for SYF stocks is “Buy” according to the report published on January 10th, 2024.
BMO Capital Markets gave a rating of “Market Perform” to SYF, setting the target price at $40 in the report published on January 10th of the current year.
SYF Trading at 3.63% from the 50-Day Moving Average
After a stumble in the market that brought SYF to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -4.76% of loss for the given period.
Volatility was left at 2.29%, however, over the last 30 days, the volatility rate increased by 2.02%, as shares surge +1.71% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +16.72% upper at present.
During the last 5 trading sessions, SYF rose by +0.48%, which changed the moving average for the period of 200-days by +22.29% in comparison to the 20-day moving average, which settled at $42.11. In addition, Synchrony Financial saw 9.32% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SYF starting from Schaller Bart, who sale 61,781 shares at the price of $42.82 back on Mar 15 ’24. After this action, Schaller Bart now owns 50,757 shares of Synchrony Financial, valued at $2,645,462 using the latest closing price.
Howse Curtis, the of Synchrony Financial, sale 6,179 shares at $42.82 during a trade that took place back on Mar 15 ’24, which means that Howse Curtis is holding 152,604 shares at $264,585 based on the most recent closing price.
Stock Fundamentals for SYF
Current profitability levels for the company are sitting at:
- 0.26 for the present operating margin
- 0.8 for the gross margin
The net margin for Synchrony Financial stands at 0.14. The total capital return value is set at 0.04. Equity return is now at value 16.72, with 2.02 for asset returns.
Based on Synchrony Financial (SYF), the company’s capital structure generated 0.59 points at debt to capital in total, while cash flow to debt ratio is standing at 0.43. The debt to equity ratio resting at 1.45. The interest coverage ratio of the stock is 1.16.
Currently, EBITDA for the company is 3.36 billion with net debt to EBITDA at 0.37. When we switch over and look at the enterprise to sales, we see a ratio of 1.14.
Conclusion
To put it simply, Synchrony Financial (SYF) has had a better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
