Synchrony Financial (NYSE: SYF)’s stock price has soared by 0.07 in relation to previous closing price of 44.67. Nevertheless, the company has seen a gain of 6.05% in its stock price over the last five trading days. Seeking Alpha reported 2024-04-26 that Synchrony Financial stock has performed well in the face of growing worries about consumer spending. While lower-income consumers are doing less big-ticket spending, SYF continues to grow loan balances and interest income. Delinquencies are showing signs of peaking, and the Company is making growth moves through acquisitions and partnerships.
Is It Worth Investing in Synchrony Financial (NYSE: SYF) Right Now?
The price-to-earnings ratio for Synchrony Financial (NYSE: SYF) is 6.41x, which is above its average ratio. Moreover, the 36-month beta value for SYF is 1.59. Analysts have varying opinions 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 2.94% of that float. On April 30, 2024, SYF’s average trading volume was 4.41M shares.
SYF’s Market Performance
The stock of Synchrony Financial (SYF) has seen a 6.05% increase in the past week, with a 3.66% rise in the past month, and a 13.97% gain in the past quarter. The volatility ratio for the week is 3.06%, and the volatility levels for the past 30 days are at 2.66% for SYF. The simple moving average for the last 20 days is 6.91% for SYF’s stock, with a simple moving average of 25.61% for the last 200 days.
Analysts’ Opinion of SYF
Many brokerage firms have already submitted their reports for SYF stocks, with Wolfe Research repeating the rating for SYF by listing it as a “Outperform.” The predicted price for SYF in the upcoming period, according to Wolfe Research is $50 based on the research report published on April 04, 2024 of the current year 2024.
Morgan Stanley, on the other hand, stated in their research note that they expect to see SYF reach a price target of $30. The rating they have provided for SYF stocks is “Underweight” according to the report published on February 08th, 2024.
Deutsche Bank gave a rating of “Buy” to SYF, setting the target price at $56 in the report published on January 10th of the current year.
SYF Trading at 7.45% 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 -1.67% of loss for the given period.
Volatility was left at 2.66%, however, over the last 30 days, the volatility rate increased by 3.06%, as shares surge +7.07% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +12.17% upper at present.
During the last 5 trading sessions, SYF rose by +6.05%, which changed the moving average for the period of 200-days by +25.32% in comparison to the 20-day moving average, which settled at $41.96. In addition, Synchrony Financial saw 17.05% 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:
- 0.37 for the present operating margin
- 0.8 for the gross margin
The net margin for Synchrony Financial stands at 0.16. The total capital return value is set at 0.06. Equity return is now at value 20.58, with 2.56 for asset returns.
Based on Synchrony Financial (SYF), the company’s capital structure generated 0.55 points at debt to capital in total, while cash flow to debt ratio is standing at 0.47. The debt to equity ratio resting at 1.24. The interest coverage ratio of the stock is 1.62.
Currently, EBITDA for the company is 3.36 billion with net debt to EBITDA at -0.56. When we switch over and look at the enterprise to sales, we see a ratio of 0.78. The receivables turnover for the company is 0.2for trailing twelve months and the total asset turnover is 0.15.
Conclusion
To wrap up, the performance of Synchrony Financial (SYF) has been better in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
