Gulf International Bank UK Ltd Decreases Holdings in Synchrony Financial by 33.8%

Gulf International Bank UK Ltd, an industry-leading financial institution, has decreased its holdings in Synchrony Financial (NYSE:SYF) by 33.8% during the first quarter of the year. The bank’s recent Securities and Exchange Commission (SEC) 13F filing revealed that they owned 59,712 shares of Synchrony Financial stock after selling an additional 30,499 shares during the period. It was noted that Gulf International Bank UK Ltd’s holdings in Synchrony Financial were worth $1,736,000 by the end of the most recent quarter.

Synchrony Financial announced its quarterly earnings data on Wednesday, April 19th. During this time, it was reported that the financial services provider had earned a $1.35 EPS for the quarter which fell short of the consensus estimate of $1.37 by ($0.02). Other findings showed that Synchrony Financial garnered revenue of $4.79 billion throughout this period compared to previous consensus estimates of $4.02 billion. The business had a return on equity of 21.68% and a net margin of 14.93%, with similar data highlighting that during this same period last year, Synchrony Financial had posted earnings per share (EPS) of $1.73.

Multiple equities research analysts have since commented on these recent occurrences involving Synchrony Financial and Gulf International Bank UK Ltd as well as revealing various perspectives on such matters surrounding both entities. Oppenheimer upgraded shares of Synchrony Financial from a “market perform” rating to an “outperform” status with their set price objective for the company being at $35 throughout extensive research efforts conducted on Friday, March 17th.

However, BMO Capital Markets decreased their price objective on shares of Synchrony Financial from $53 to $51 while also setting an “outperform” rating for the company during rigorous research proceedings on Thursday, April 20th. Bank of America also recently increased their price objective on shares of Synchrony Financial from $37 to $38 during detailed research efforts conducted on Monday, June 12th.

Wells Fargo & Company, on the other hand, decreased their price objective for Synchrony Financial from $37 to $31 as part of a written report released on Friday, March 31st in which an “equal weight” rating was set for the company. Lastly, Morgan Stanley likewise decreased its price objective for shares of Synchrony Financial from $31 to $26 with an underweight rating scheduled for business proceedings that transpired Wednesday, April 5th.

Despite recent events, Synchrony Financial declared that its Board of Directors had approved a stock buyback plan back on Tuesday April 25th last year. This plan would give Synchrony Financial the ability to repurchase shares amounting up to $1 billion. Overall, this repurchase program is deemed as significant because it permits the financial services provider to repurchase up to 8% of its shares through open market purchases – an action that could indicate the board’s belief in undervalued stocks regarding previously mentioned research based parameters.

Institutional investors and hedge funds increase stake in Synchrony Financial

Synchrony Financial, the financial services provider, has seen changes in its investment positions from institutional investors and hedge funds recently. Envestnet Asset Management Inc. has increased its holdings in shares of Synchrony Financial by 6.9% during Q4, bringing its ownership to 211,497 shares of the company’s stock valued at $6.95 million after acquiring an additional 13,571 shares. Furthermore, Tcwp LLC has acquired a new stake in the company’s shares worth approximately $224,000 during the same period. Brinker Capital Investments LLC had also raised its holdings by 9.3%, now holding 44,060 shares worth $1.45 million after acquiring an additional 3,747 shares during the last quarter.

Janney Montgomery Scott LLC took action to invest in Synchrony Financial with a new stake worth around $241,000; meanwhile Aviva PLC took a bigger leap raising its holdings in the company by 63.5% over Q4 last year and now holds 157,284 shares worth almost $14 million after acquiring an additional 61,089 shares.

As might be expected given these recent investments actions from institutional investors and hedge funds, it is reported that such entities now own a massive 92.50% of Synchrony Financial’s whole outstanding stock body.

Synchrony Financial opened trading on Monday at $32.70 with a market cap of $14.01 billion while showing robust price diversity with a PE ratio of 5.76 alongside steady growth apparent through a price-to-earnings-growth ratio of 1.51 and interest levels indicated by Beta score of over one-and-a-half times.

It is noteworthy that Synchrony announced considerably comfortable quarterly cash dividends more recently as per latest reports which were paid out on Friday May 12th to investors who have ownership rights in company stock as on Tuesday May 2nd; worth $0.23 per stock share issued this quarter. This figure represents an annualized dividend of $0.92 in addition to a yield of 2.81% while taking note of the ex-dividend date as Monday, May 1st with Synchrony Financial’s dividend payout ratio (DPR) reportedly being around 16.20% as at present.