Texas Retirement System Reduces Stake in Synchrony Financial

News Summary

The Teacher Retirement System of Texas has significantly reduced its investment in Synchrony Financial by 53.3%, holding now only 0.07% of shares. This move coincides with various strategic shifts in investments from other firms, sparking curiosity about the future of Synchrony amidst fluctuating market conditions. With a mixed bag of analyst ratings and a recent EPS that has surpassed expectations, investors are keen to interpret what this means for Synchrony’s next moves.

Texas

The Teacher Retirement System of Texas has significantly reduced its investment in Synchrony Financial, decreasing its stake by 53.3% during the first quarter of 2023. After selling 312,768 shares, the retirement system now owns 274,542 shares, which represents approximately 0.07% of Synchrony Financial. This current stake is valued at $14,534,000 based on recent market data.

In addition to the Teacher Retirement System’s actions, several other institutional investors have shown varying levels of commitment to Synchrony Financial. TCTC Holdings LLC entered the market with a new stake valued at about $27,000 in the fourth quarter of 2022. In contrast, CVA Family Office LLC made significant increases, raising its stake 355.9% during the first quarter and owning 693 shares worth $37,000 after acquiring an additional 541 shares.

Furthermore, Accredited Wealth Management LLC established a new position in Synchrony with investments approximating $38,000 in the fourth quarter. Meanwhile, Rothschild Investment LLC increased its stake by 55.6% during the first quarter. This investment now totals 862 shares valued at $46,000 after purchasing an additional 308 shares. Notably, Golden State Wealth Management LLC escalated its holdings dramatically, increasing by 503.7% during the quarter and now owning 972 shares valued at $51,000 after acquiring 811 shares.

Market Performance and Financial Highlights

Synchrony Financial’s stock experienced a gains of $0.78 on its last trading day, closing at $70.25. A total of 2,265,856 shares were traded that day, falling short of the average volume of 3,875,644 shares. The company boasts a market capitalization of $26.74 billion and has recorded a PE ratio of 9.64 with a P/E/G ratio of 0.73.

In recent financial disclosures, Synchrony Financial reported an earnings per share (EPS) of $1.89 for the quarter ending April 22nd, surpassing the consensus estimate of $1.63. However, revenue for the same quarter was reported at $3.72 billion, which was below the estimated $3.80 billion. The company also showcased a return on equity of 19.68% and a net margin of 13.00%.

Dividend Information and Future Projections

Recently, Synchrony Financial announced an increased quarterly dividend of $0.30, up from $0.25, leading to an annualized dividend yield of 1.71%. The payout ratio is reported at 16.46%, with an ex-dividend date set for May 5th.

Looking ahead, analysts predict that Synchrony Financial could achieve an EPS of 7.67 for the current fiscal year. However, forecasts regarding the stock price have been mixed, with JPMorgan Chase & Co. reducing its price target for Synchrony from $76.00 to $50.00, retaining an “overweight” rating. Conversely, firm Goldman Sachs has raised its target price to $78.00, labeling Synchrony with a “buy” rating. Consensus sentiment amongst analysts suggests a moderate buy rating, with an average target price of $65.78.

Insider Activity and Shareholder Insights

Despite the large institutional ownership, standing at 96.48%, only a scant 0.32% of Synchrony Financial’s stock is owned by company insiders. Recent sales by insiders include Curtis Howse offloading 11,380 shares and Jonathan S. Mothner selling 40,639 shares, indicating active management dynamics. This sheds light on the underlying shareholder activity that affects the stock’s performance.

Synchrony Financial operates primarily within the consumer financial services sector, offering a diverse range of credit and deposit products, reinforcing its stance in the market.

Deeper Dive: News & Info About This Topic

• MarketBeat: Texas Retirement System Reduces Stake in Synchrony Financial
• Wikipedia: Synchrony Financial
• MarketWatch: Synchrony Financial Overview
• Reuters: Synchrony Financial
• The Motley Fool: Synchrony Financial Stock Update
• Encyclopedia Britannica: Financial Market