Synchrony Financial (SYF) Stock Gains on Dividend, Share Repurchases
NEW YORK (TheStreet) -- Shares of Synchrony Financial (SYF) - Get Report are up 5.15% to $27.36 in mid-morning trading on Friday after announcing a dividend and stock buyback program that topped analysts' expectations.
The private label credit-card issuer's board has approved a quarterly dividend of 13 cents per share. The dividend will be payable on August 25 to shareholders of record as of August 12.
Synchrony also announced a share repurchase program of up to $952 million for the fourth quarter ending June 30, 2017.
"Synchrony's capital plan is likely to be received positively given it is slightly better than some of the Street assumptions," Sanjay Sakhrani, a Keefe, Bruyette & Woods analyst who had forecast a 10-cent dividend, told Bloomberg. "This could be a positive catalyst."
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Synchrony Financial's strengths such as its revenue growth, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: SYF
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.