STAMFORD, CT—Jonathan S. Mothner, the Executive Vice President, Chief Risk and Legal Officer at Synchrony Financial (NYSE:SYF), recently executed a series of stock transactions, according to a recent SEC filing. On November 15, Mothner sold a total of 34,163 shares of Synchrony Financial common stock, realizing approximately $2.22 million, with shares priced at $64.99 each.
In addition to the sales, Mothner also exercised options to acquire 16,163 shares at a price of $30.41 per share, amounting to a total value of $491,516. This transaction was part of a pre-established Rule 10b5-1 trading plan adopted in July 2024.
These activities reflect Mothner's ongoing management of his equity holdings in Synchrony Financial, aligning with the company's strategic financial practices. The transactions were conducted under direct ownership, as noted in the SEC filing.
In other recent news, Synchrony Financial has reported significant developments. The company has released its monthly charge-off and delinquency statistics, key indicators of its credit portfolio's health, to the Securities and Exchange Commission. This commitment to transparency provides investors with vital insights into the company's financial health. Synchrony Financial has also declared a quarterly cash dividend for its common and preferred stockholders, with dividends payable on November 15, 2024. The company's common stock dividend is $0.25 per share, while the Series A and Series B Preferred Stock dividends are approximately $14.06 and $20.63 per share, respectively.
In addition to these updates, Synchrony Financial has reported robust third-quarter earnings, with net earnings of $789 million, exceeding consensus estimates. Following these strong results, the company revised its full-year 2024 earnings per share (EPS) guidance upwards to a range of $8.45-$8.55. Analysts from Baird, RBC (TSX:RY) Capital, Wells Fargo (NYSE:WFC), and JPMorgan (NYSE:JPM) have all responded by increasing their price targets for the company. Despite these positive developments, Synchrony Financial anticipates a low single-digit decline in purchase volume for Q4.
The company is also navigating uncertainties related to the Consumer Financial Protection Bureau's late fee rule litigation. As Synchrony Financial continues to adapt strategies based on portfolio performance and market conditions, these recent developments provide investors with a snapshot of the company's performance and future expectations as stated by the company and various analyst firms.
InvestingPro Insights
The recent stock transactions by Jonathan S. Mothner at Synchrony Financial (NYSE:SYF) occur against a backdrop of strong financial performance for the company. According to InvestingPro data, Synchrony's market capitalization stands at $24.77 billion, with a P/E ratio of 8.27, indicating a potentially undervalued stock relative to earnings.
InvestingPro Tips highlight that Synchrony has been trading at a low P/E ratio relative to its near-term earnings growth, which could explain the executive's decision to exercise options and realize gains. The company's strong financial position is further underscored by its revenue growth of 16.99% over the last twelve months, reaching $9.007 billion.
Investors may find Synchrony's dividend history appealing, as InvestingPro Tips reveal that the company has raised its dividend for 3 consecutive years and maintained payments for 9 years. With a current dividend yield of 1.56%, this demonstrates a commitment to shareholder returns.
The stock's performance has been particularly impressive, with a one-year price total return of 119.16% and a year-to-date return of 71.47%. This aligns with the InvestingPro Tip noting Synchrony's high return over the last year and strong returns over shorter periods.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips on Synchrony Financial, providing a comprehensive view of the company's financial health and market position.
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