Synchrony Financial (SYF) 2020 Stock Forecast: Bullish Outlook with 36.05% Upside

Synchrony Financial (NYSE: SYF) is -28.96% lower on its value in year-to-date trading and has touched a low of $12.15 and a high of $38.18 in the current 52-week trading range. The SYF stock was last observed hovering at around $24.45 in the last trading session, with the day’s gains setting it 1.13% off its average median price target of $27.75 for the next 12 months. It is also 36.05% off the consensus price target high of $40.00 offered by 19 analysts, but current levels are -27.9% lower than the price target low of $20.00 for the same period.

Currently trading at $25.58, the stock is 6.64% and 9.69% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 5.55 million and changing 4.62% at the moment leaves the stock -2.81% off its SMA200. SYF registered -19.99% loss for a year compared to 6-month loss of -12.10%. The firm has a 50-day simple moving average (SMA 50) of $23.53 and a 200-day simple moving average (SMA200) of $22.12.

The stock witnessed a 7.57% gain in the last 1 month and extending the period to 3 months gives it a 25.58%, and is 6.85% up over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 3.89% over the week and 3.67% over the month.

Synchrony Financial (SYF) has around 16500 employees, a market worth around $14.95B and $17.80B in sales. Current P/E ratio is 7.85 and Fwd P/E is 9.36. Profit margin for the company is 11.80%. Distance from 52-week low is 110.53% and -33.00% from its 52-week high. The company has generated returns on investments over the last 12 months (33.50%).

Synchrony Financial (SYF) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Synchrony Financial (SYF) is a “Overweight”. 19 analysts offering their recommendations for the stock have an average rating of 1.90, where 5 rate it as a Hold and 1 think it is a “Overweight”. 13 of the analysts rate the stock as a “Buy”. 0 analysts have rated the stock as a Sell or Underperform.

Synchrony Financial is expected to release its quarterly report on 10/16/2020 and quarterly earnings per share for the current quarter are estimated at $0.37 with sales reaching $3.51B over the same period. The EPS is expected to grow by 48.90% this year, but quarterly earnings will post -13.70% year-over-year. Quarterly sales are estimated to shrink -19.90% in year-over-year returns.

Synchrony Financial (SYF) Top Institutional Holders

983 institutions hold shares in Synchrony Financial (SYF), with 2.14M shares held by insiders accounting for 0.37% while institutional investors hold 106.94% of the company’s shares. The shares outstanding are 583.70M, and float is at 581.26M with Short Float at 2.45%. Institutions hold 106.54% of the Float.

The top institutional shareholder in the company is Vanguard Group, Inc. (The) with over 65.75 million shares valued at $1.46 billion. The investor’s holdings represent 11.26% of the SYF Shares outstanding. As of Jun 29, 2020, the second largest holder is Capital World Investors with 43.02 million shares valued at $953.36 million to account for 7.37% of the shares outstanding. The other top investors are FMR, LLC which holds 41.55 million shares representing 7.12% and valued at over $920.68 million, while Blackrock Inc. holds 6.88% of the shares totaling 40.17 million with a market value of $890.17 million.

Synchrony Financial (SYF) Insider Activity

A total of 105 insider transactions have happened at Synchrony Financial (SYF) in the last six months, with sales accounting for 29 and purchases happening 76 times. The most recent transaction is an insider purchase by Parker P.W., the company’s Director. SEC filings show that Parker P.W. bought 10,000 shares of the company’s common stock on Jul 28 at a price of $23.32 per share for a total of $0.23 million. Following the purchase, the insider now owns 10000.0 shares.

Synchrony Financial disclosed in a document filed with the SEC on Jun 30 that Graylin Will W (Director) sold a total of 7,500 shares of the company’s common stock. The trade occurred on Jun 30 and was made at $21.77 per share for $0.16 million. Following the transaction, the insider now directly holds 51442.0 shares of the SYF stock.

Still, SEC filings show that on Jun 05, MELITO DAVID P disposed off 2,883 shares at an average price of $26.75 for $77120.0. The insider now directly holds 19,381 shares of Synchrony Financial (SYF).

Synchrony Financial (SYF): Who are the competitors?

The company’s main competitors (and peers) include Hertz Global Holdings Inc. (HTZ) that is trading -87.55% down over the past 12 months. FLEETCOR Technologies Inc. (FLT) is -16.09% down on the 1-year trading charts. Short interest in the company’s stock has fallen -5.82% from the last report on Jul 14, 2020 to stand at a total of 16.73 million short shares sold with a short interest ratio of 2.76.