Thanks to a 8.87 sell/buy ratio, Synchrony Financial (NYSE:SYF) insider selling over the last three months picked up more than buying did. When insiders sell more shares of their company stock, it’s generally for one reason only: With inside knowledge of their company’s prospects, they expect the stock price to decline soon. SYF recorded 16 sales on the open market in the last three months. They sold nearly 350,987 shares while purchases amounted to 39,566 shares that period. Looking even further back to 12 months, corporate insiders offloaded 488,667 shares when buyers snapped up 264,119 shares. The 12-month’s totals signify about a 1.85-to-1 sell/buy ratio.
Naylor Jeffrey G gathered a total of 5 thousand shares of Synchrony Financial (SYF) at average share price of $29.57. This insider trade in the company took place on 07/30/2018. The total for the purchase was set at $147.85 thousand. After this transaction, the Director account balance stood at 48 thousand shares. The stock grew 6.05 percent since that insider purchase. On 07/30/2018, Guthrie Roy A, Director, purchased 10 thousand shares at a price per share of $29.53. This added 295.3 thousand shares to the insider’s fortune and the stock saw a 6.2 percent rally in value since the news became public. This transaction left 36 thousand shares in the Director account.
On 07/30/2018, Director Graylin Will W performed a purchase transaction worth $295.1 thousand. This purchase at $29.51 each has added 10 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 6.27 percent increase since the transaction was reported. The insider now is left with 70.71 thousand shares remaining in the account. Melito David P sold 2.09 thousand shares for $74.55 thousand. The disposal occurred on 05/21/2018 was priced at $35.6 per share. The share price plunged -11.91 percent since the reporting date. Melito David P now left with a stake of 42.27 thousand SYF stock worth $1.25 million after the insider selling.
The 12-month median price target for Synchrony Financial (SYF) assigned by the analysts stands at $36, which represents a return potential of 22.16 percent when compared to the closing price of the stock of $29.47 on Monday, October 22. The lowest price target for the stock is $28.5 — slightly more than -3.29 percent from SYF’s current share price. The stock will probably climb 30.06 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $50 as a high price target. This represents a whopping 69.66 percent increase from where shares are trading today.
On momentum oscillators front, ‘RSI’ has touched 39.01 on daily chart, which may remain a cause for comfort. If the price breaks below $27.99 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $30.89 mark may result into a pull-back move towards $32.31 level. The stock is currently hovering around the first support level of $28.73. Below this, the next support is placed in the zone of $27.99. Till the time, the SYF stock trades above this level, bulls have nothing to fear.
Shares of Synchrony Financial (SYF) are trading at a P/E ratio of 9.96 times earnings reported for the past 12 months. The industry SYF operates in has an average P/E of 13.72. Its P/E ratio went as low as 10.69X and as high as 14.74 over the 5-year span. Further, it is sporting a 1.31 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.44. 0 percent is the gross profit margin for Synchrony Financial and operating margin sits at 58.5 percent. Along with this, the net profit margin is 12.3 percent.
On 22nd of October, Synchrony Financial (NYSE:SYF) shares ended lower after a volatile session. The shares dropped -1.89 points or -6.03 percent at $29.47 with a heavy trade volume of 8.822 million shares. After opening the session at $31.51, the shares went as high as $31.57 and as low as $29.41, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $22.2 billion and now has 752.2 million shares outstanding. Synchrony Financial (SYF) stock has lost -11.95 percent of market value in 21 trading days.
In last reported earnings results, SYF earned $0.91 per share, better than the $0.8, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $3.74B, worse than the $3.83B analysts expected. Earnings are estimated to increase by -3.2 percent this year, 31.06 percent next year and continue to increase by 22.7 percent annually for the next 5 years. Analysts are forecasting revenue to climb 12 percent to $4.39B in the next fiscal quarter, while earnings are seen soaring by nearly 25.71 percent to $0.88 per share. History has shown that shares in Synchrony Financial have gone up on 11 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings.
SYF stock has a trailing 3-year beta of 1.03, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.15 a share in the trailing twelve months. The stock’s value has fallen -23.67 percent year to date (YTD) against a decline of -10.81 percent in 12 month’s time. The company’s shares still trade -27.4 percent away from its 1-year high of $40.59 and 2.9 percent up from 52-week low of $28.64. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.