Morgan Stanley slashes price target on Synchrony Financial [SYF] – find out why.

Synchrony Financial [NYSE: SYF] closed the trading session at $34.39 on 12/05/22. The day’s price range saw the stock hit a low of $34.32, while the highest price level was $35.03. The company report on November 29, 2022 that Synchrony to Participate in the Goldman Sachs 2022 US Financial Services Conference.


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Synchrony (NYSE: SYF) President and Chief Executive Officer, Brian D. Doubles and Executive Vice President and Chief Financial Officer, Brian J. Wenzel,  will participate in a fireside chat at the Goldman Sachs 2022 US Financial Services Conference on Tuesday, December 6, 2022 at 8:00 a.m. (Eastern Time).

A live webcast and replay will be made available on the Synchrony Investor Relations website at www.investors.synchronyfinancial.com.

The stocks have a year to date performance of -25.87 percent and weekly performance of -5.57 percent. The stock has been moved at -3.91 percent over the last six months. The stock has performed 1.09 percent around the most recent 30 days and changed 10.94 percent over the most recent 3-months.

If compared to the average trading volume of 5.32M shares, SYF reached to a volume of 5798575 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Synchrony Financial [SYF]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SYF shares is $39.11 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SYF stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for Synchrony Financial shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on December 01, 2022. While these analysts kept the previous recommendation, UBS raised their target price to Neutral. The new note on the price target was released on November 21, 2022, representing the official price target for Synchrony Financial stock. Previously, the target price had yet another drop from $45 to $32, while Wells Fargo kept a Equal Weight rating on SYF stock.

The Average True Range (ATR) for Synchrony Financial is set at 1.30, with the Price to Sales ratio for SYF stock in the period of the last 12 months amounting to 0.96. The Price to Book ratio for the last quarter was 1.31, with the Price to Cash per share for the same quarter was set at 26.08. Price to Free Cash Flow for SYF in the course of the last twelve months was 2.46.

SYF stock trade performance evaluation

Synchrony Financial [SYF] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.57. With this latest performance, SYF shares gained by 1.09% in over the last four-week period, additionally sinking by -3.91% over the last 6 months – not to mention a drop of -24.05% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SYF stock in for the last two-week period is set at 44.10, with the RSI for the last a single of trading hit 37.42, and the three-weeks RSI is set at 47.51 for Synchrony Financial [SYF]. The present Moving Average for the last 50 days of trading for this stock 33.90, while it was recorded at 36.10 for the last single week of trading, and 34.34 for the last 200 days.

Synchrony Financial [SYF]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Synchrony Financial [SYF] shares currently have an operating margin of +53.18 and a Gross Margin at +91.94. Synchrony Financial’s Net Margin is presently recorded at +37.61.

Return on Equity for this stock inclined to 32.03, with Return on Assets sitting at 4.40.

Earnings per share (EPS) analysis for Synchrony Financial [SYF] stock

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SYF. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Synchrony Financial go to -8.80%.

Synchrony Financial [SYF]: Insider Ownership positions

There are presently around $15,161 million, or 99.58% of SYF stock, in the hands of institutional investors. The top three institutional holders of SYF stocks are: VANGUARD GROUP INC with ownership of 61,365,694, which is approximately -2.3% of the company’s market cap and around 0.40% of the total institutional ownership; CAPITAL WORLD INVESTORS, holding 45,090,752 shares of the stock with an approximate value of $1.55 billion in SYF stocks shares; and BLACKROCK INC., currently with $1.45 billion in SYF stock with ownership of nearly -3.028% of the company’s market capitalization.

Positions in Synchrony Financial stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 277 institutional holders increased their position in Synchrony Financial [NYSE:SYF] by around 20,013,901 shares. Additionally, 348 investors decreased positions by around 39,797,561 shares, while 92 investors held positions by with 381,030,981 shares. The mentioned changes placed institutional holdings at 440,842,443 shares, according to the latest SEC report filing. SYF stock had 52 new institutional investments in for a total of 3,383,561 shares, while 76 institutional investors sold positions of 7,239,374 shares during the same period.

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