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Synchrony Financial (SYF) Soars 8.50% on Earnings Beat

Mover TrackerMonday, May 12, 2025 6:53 pm ET

1min read

Synchrony Financial (SYF) surged 8.50% today, marking its fourth consecutive day of gains, with a total increase of 13.03% over the past four days. The share price reached its highest level since March 2025, with an intraday gain of 9.33%.

The strategy of buying SYF shares after they reached a recent high and holding for 1 week resulted in a 14.23% return over the past 5 years. This is compared to the market's annualized return of 6.69% over the same period, indicating that the strategy outperformed the market significantly. The average annual return of the strategy was 21.98%, which further highlights its strong performance. Currently, SYF has a market capitalization of $9.04 billion.

Synchrony Financial's recent earnings report revealed an earnings per share (EPS) of $1.89 for the quarter, exceeding analysts' consensus estimates of $1.63. This positive earnings surprise has likely contributed to the recent upward momentum in the stock price.

Despite the positive earnings report, Truist Securities adjusted its price target for Synchrony Financial to $57 from $65. This adjustment suggests a more cautious outlook, which could potentially temper investor enthusiasm and impact the stock price negatively.

Technical indicators also played a role in the stock's performance. Synchrony Financial's shares crossed above their 200-day moving average, trading as high as $60.82 per share. This technical milestone is generally seen as a bullish signal, supporting the upward trend in the stock price.

On May 5th, 2025, Synchrony Financial went ex-dividend with a dividend of $0.3 per share scheduled for May 15th, 2025. The ex-dividend date often results in a temporary drop in share price by the dividend amount, reflecting the cash outflow from the company. However, this effect is typically short-lived and does not significantly impact the long-term trajectory of the stock.

During the Q1 2025 earnings conference, the company reported a 23% decrease in net revenue to $3.7 billion. This decline was primarily due to the absence of last year's Pets Best gain on sale. Excluding this factor, net revenue remained flat, which could have mixed implications for investor sentiment and stock performance. The decrease in net revenue might raise concerns among investors, while the flat revenue excluding the one-time gain could provide some reassurance.

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