Synchrony Financial (SYF)

Synchrony Financial's stock experienced several events in the past six months. In Q4 2024, the company reported adjusted EPS of $1.91, with net interest income improving by 2.7% year-over-year. Analysts at Barclays upgraded SYF, COF, and DFS, citing a stable consumer environment. Synchrony acquired Ally's point-of-sale financing business. In Q1 2025, net earnings were $757 million, or $1.89 per diluted share. An equity buyback plan was announced, with 8,566,757 shares repurchased for $500 million. The company announced a quarterly dividend increase to $0.30 per share. Synchrony partnered with Sploot Veterinary Care to finance veterinary services. In Q2 2025, EPS was $2.50, exceeding analyst estimates, with net earnings surging 50% year-over-year, and the company revised its full fiscal year 2025 revenue guidance downward.

Synchrony Financial experiences demand seasonality in its products and services, with fluctuations generally most evident between the fourth quarter and the first quarter of the following year. There is typically a seasonal increase in delinquency rates during the third and fourth quarters. Promotional offers also suggest that demand for certain products may be influenced by holidays and specific retail periods.

Synchrony Financial, based in Stamford, Connecticut, offers credit products and financing solutions through partnerships with retailers, merchants, manufacturers, and healthcare providers. Its products include private-label credit cards, co-branded credit cards, installment loans, promotional financing, and loyalty programs. Through Synchrony Bank, it provides FDIC-insured consumer savings products. Synchrony serves various industries, including digital, health, retail, and auto, with key partnerships including Amazon, Lowe's, and Walmart. The company also offers healthcare payments and financing solutions under the CareCredit brand.

Synchrony Financial's headquarters are in Stamford, Connecticut, and it primarily operates in the U.S. and Canada. It maintains innovation stations in Stamford, Connecticut; Chicago, Illinois; Kettering, Ohio; and Hyderabad, India, and has a global employee presence.

Synchrony Financial has maintained a positive brand reputation, being named a top "Best Companies to Work For" for the seventh consecutive year. The company has donated over $70 million to non-profit organizations since 2014, with employees contributing 120,000 volunteer hours through 2023. However, a class-action lawsuit was filed in May 2024, alleging that CareCredit's interest rates violate state usury laws, which could negatively impact the company's brand reputation.

Synchrony Financial's ownership is a mix of institutional, retail, and individual investors. Approximately 60.56% of the company's stock is owned by Institutional Investors, 0.44% by Insiders, and 39.00% by Public Companies and Individual Investors. Major institutional owners include Vanguard Group Inc, Capital World Investors, and BlackRock, Inc., with Vanguard owning the most shares.