Synchrony Financial Shares Drop 1.44% Despite Upgraded Earnings Estimate Ranks 492nd in $240M Trading Volume

Synchrony Financial (SYF) closed 1.44% lower on August 7, 2025, with a trading volume of $240 million, ranking 492nd among stocks by daily volume. The decline occurred despite Zacks Research upgrading its FY2025 earnings per share (EPS) estimate to $8.15 from $7.57, reflecting improved expectations for the financial services provider. The firm also announced a quarterly dividend of $0.30 per share, yielding 1.7% annually, with a consistent payout ratio of 14.56%.

Institutional investors increased their holdings in Synchrony during Q1 2025. Vanguard Group, Invesco Ltd., and Northern Trust Corp. added 0.6% to 26.7% to their positions, collectively boosting institutional ownership to 96.48%. This contrasts with insider activity, where executives sold over 61,000 shares in the past 90 days, including a 21.7% reduction in Jonathan S. Mothner’s stake. The insider sales totaled $3.82 million in value, raising questions about confidence in short-term performance.

The company’s recent quarterly results showed a 14.43% net margin and 21.34% return on equity, with $3.65 billion in revenue (down 1.8% year-over-year). Despite missing revenue estimates by $50 million, the $2.50 EPS exceeded forecasts by $0.78, indicating operational resilience. Analysts have varied price targets, ranging from $56 to $80, with a consensus “Moderate Buy” rating and a $74.05 average target.

A strategy of purchasing the top 500 stocks by daily trading volume and holding for one day returned 166.71% from 2022 to 2025, outperforming the benchmark by 137.53%. This highlights liquidity concentration’s role in short-term performance, particularly in volatile markets, though investors must weigh risks against potential gains.