Curtis Howse, Executive Vice President and CEO of Home & Auto at Synchrony Financial (NYSE:SYF), recently sold 21,934 shares of the company's common stock. The shares were sold at a price of $55.13 each, resulting in a total transaction value of approximately $1.2 million. Following this sale, Howse holds 99,743 shares of Synchrony Financial. The transaction was conducted under a Rule 10b5-1 trading plan adopted in November 2023.
In other recent news, Synchrony Financial declared a quarterly cash dividend of $0.25 per share on its common stock, along with dividends on preferred stock. This comes as the company reported robust third-quarter earnings with net earnings of $789 million, surpassing consensus estimates. Synchrony Financial also revised its full-year 2024 earnings per share (EPS) guidance upwards to a range of $8.45-$8.55.
In response to these strong results, Baird, RBC Capital, Wells Fargo (NYSE:WFC), and JPMorgan all increased their price targets for Synchrony Financial. The company's solid performance was attributed to proactive payment protection controls and a decline in year-over-year delinquency growth.
Additionally, the company added 4.7 million new accounts and generated $45 billion in purchase volume. Despite these achievements, Synchrony Financial anticipates a low single-digit decline in purchase volume for Q4. These recent developments provide investors with a snapshot of Synchrony Financial's recent performance and future expectations as stated by the company and various analyst firms.
InvestingPro Insights
While Curtis Howse's recent stock sale might raise eyebrows, a closer look at Synchrony Financial's (NYSE:SYF) performance and market position reveals a more nuanced picture. According to InvestingPro data, Synchrony's stock has shown remarkable strength, with a 96.86% price total return over the past year and a 28.82% return in the last three months. The company is currently trading near its 52-week high, with its price at 99.04% of the peak.
Financially, Synchrony appears to be on solid footing. The company boasts a low P/E ratio of 7.33, suggesting it may be undervalued relative to its earnings. This is further supported by an InvestingPro Tip indicating that Synchrony is trading at a low earnings multiple. Additionally, the company has maintained dividend payments for 9 consecutive years, demonstrating a commitment to shareholder returns.
Management's confidence in the company's prospects is evident from two key InvestingPro Tips: the aggressive share buyback program and the fact that 12 analysts have revised their earnings upwards for the upcoming period. These factors, combined with Synchrony's strong profitability over the last twelve months, paint a picture of a company with robust fundamentals despite the insider sale.
For investors seeking more comprehensive insights, InvestingPro offers 13 additional tips for Synchrony Financial, providing a deeper understanding of the company's financial health and market position.
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