BTIG Research has recently reduced Synchrony Financial (SYF) stock to Neutral rating, as announced on September 16, 2024, according to Finviz. Earlier, on August 9, 2024, BofA Securities had raised the stock from a Neutral to Buy, setting a price target of $54. Compass Point also initiated Buy rating with a price target of $56. Additionally, Robert W. Baird initiated Outperform rating on June 28, 2024, with a target price of $56. BTIG Research analysts, in their report published on June 7, 2024, also initiated Buy rating and set a price target of $60 for Synchrony Financial’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Synchrony Financial (SYF) Stock Trading Recap
On Wednesday, Synchrony Financial (SYF) stock saw a modest uptick, ending the day at $56.31 which represents a slight increase of $0.56 or 1.00% from the prior close of $55.75. The stock opened at $56.13 and touched a low of $55.95 during the day, reaching a high of $57.37. The volume of shares traded was 4.23 million exceeding the average volume of 3.35 million.
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SYF Stock Performance and Moving Averages
In recent trading, Synchrony Financial (SYF) stock price has shown some volatility, fluctuating 2.38% over the last five trades and 14.89% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 28.09%, and it has gained 15.96% in the previous three months. Currently, SYF is trading at 3.96%, 10.75%, and 24.25% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, SYF, a Financial sector stock, is trading -1.67% below its 52-week high but remains 103.43% above its 52-week low. The Average True Range (ATR) (14 days) of 1.42 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Synchrony Financial’s Profitability and Valuation Ratios
Synchrony Financial’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 24.05% and a profit margin of 15.08%, with a gross margin of 28.09%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Synchrony Financial’s market capitalization stands at $21.92 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 7.35, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 8.94. Additionally, the Price-to-Sales Ratio is 1.07, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.49, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.67% of Synchrony Financial (SYF)’s shares, while financial institutions hold 101.94%.
Notable insider trades include Wenzel Brian J. Sr., See remarks at Synchrony Financial (SYF), who sold 74698 shares on Aug 19 ’24, at $46.73 each, totaling $3.49 million. On May 02 ’24, Howse Curtis, See remarks, sold 31562 shares for $45 each, amounting to $1.42 million. Additionally, on Mar 15 ’24, Howse Curtis sold 6179 shares at $42.82 each, generating $0.26 million.
