Synchrony Financial (SYF): High Insider Buying Hits The Tape

At Synchrony Financial (NYSE:SYF), the ratio of insider selling to insider buying over a quarter is running at 0.45. Could this be a sign something is cheering insiders? SYF recorded 11 sales count on the open market in the last three months. They sold nearly 107,914 shares while purchases amounted to 239,966 shares that period. Looking even further back to 12 months, corporate insiders offloaded 588,620 shares when buyers snapped up 492,275 shares. The 12-month’s totals signify about a 1.2-to-1 sell/buy ratio.

Melito David P parted with a total of 3.93 thousand shares of Synchrony Financial (SYF) at average share price of $30. This insider trade in the company took place on 01/31/2019. The total for the sales was set at $118.02 thousand. After this transaction, the account balance stood at 29.49 thousand shares. The stock lost -1.03 percent since that insider sale. On 01/28/2019, Richie Laurel, Director, purchased 0.5 thousand shares at a price per share of $30.2. This added 15.1 thousand shares to the insider’s fortune and the stock saw a -1.69 percent retreat in value since the news became public. This transaction left 14.91 thousand shares in the Director account.

On 01/24/2019, Melito David P performed a sale transaction worth $96.12 thousand. This sale at $30 each has eliminated 3.2 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -1.03 percent decrease since the transaction was reported. The insider now is left with 33.42 thousand shares remaining in the account. Naylor Jeffrey G, who performs the Director job, bought 5 thousand shares for $147.85 thousand. The acquisition occurred on 07/30/2018 was priced at $29.57 per share. The share price soared 0.41 percent since the reporting date. Naylor Jeffrey G now left with a stake of 48 thousand SYF stock worth $1.43 million after the insider buying.

The 12-month median price target for Synchrony Financial (SYF) assigned by the analysts stands at $35.5, which represents a return potential of 19.57 percent when compared to the closing price of the stock of $29.69 on Friday, February 01. The lowest price target for the stock is $30 — slightly more than 1.04 percent from SYF’s current share price. The stock will probably climb 16.1 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $52price as 12-month high target. This represents a whopping 75.14 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 72 on daily chart, which may remain a cause for concern. If the price breaks below $29.34 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $29.96 mark may result into a pull-back move towards $30.22 level. The stock is currently hovering around the first support level of $29.52. Below this, the next support is placed in the zone of $29.34. 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 7.78 times earnings reported for the past 12 months. The industry SYF operates in has an average P/E of 16.84. 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 1.19 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.02. 0 percent is the gross profit margin for Synchrony Financial and operating margin sits at 56 percent. Along with this, the net profit margin is 12.7 percent.

On 1st of February, Synchrony Financial (NYSE:SYF) shares ended lower after a volatile session. The shares dropped -0.35 points or -1.17 percent at $29.69 with a light trade volume of 6.321 million shares. After opening the session at $29.84, the shares went as high as $30.05 and as low as $29.61, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $21.4 billion and now has 719.21 million shares outstanding. Synchrony Financial (SYF) stock has gained 22.33 percent of market value in 21 trading days.

SYF stock has a trailing 3-year beta of 1.2, 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 $3.74 a share in the trailing twelve months. The stock’s value has surged 26.56 percent year to date (YTD) against a decline of -25.18 percent in 12 month’s time. The company’s shares still trade -25.56 percent away from its 1-year high of $39.88 and 36.35 percent up from 52-week low of $21.77. 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.