Alberto Casellas, an executive at Synchrony Financial (NYSE:SYF), a $22.6 billion financial services company currently trading at an attractive P/E ratio of 6.6x, recently executed a series of stock transactions, including a significant sale. According to InvestingPro analysis, the company’s stock appears undervalued based on its Fair Value estimate. On March 3, Casellas sold 58,026 shares of common stock at a price of $60.01 per share, amounting to a total of approximately $3.48 million. This transaction was part of a pre-established 10b5-1 trading plan.
Additionally, Casellas acquired 8,964 shares of common stock on March 3 through a stock option exercise at a price of $29.33 per share and another 6,632 shares at $30.41 per share, totaling $464,593. Earlier, on March 1, he acquired 20,302 shares of restricted stock at a price of $60.68 per share, valued at approximately $1.23 million. The company also withheld 14,932 shares to cover tax obligations, valued at $906,073. Casellas currently holds 56,462 shares of Synchrony Financial directly.
In other recent news, Synchrony Financial reported its fourth-quarter earnings for 2024, revealing an earnings per share (EPS) of $1.91, which slightly exceeded analyst expectations of $1.89. However, the company’s revenue fell short of forecasts, coming in at $3.8 billion compared to the anticipated $3.84 billion. Despite the earnings beat, this revenue miss may have influenced investor sentiment. Additionally, Synchrony Financial released its monthly credit statistics, showing a consistent delinquency rate of 4.70% and a net charge-off rate of 6.20%, both of which surpassed typical seasonal trends.
Goldman Sachs (NYSE:GS) maintained its Buy rating on Synchrony Financial, citing the company’s solid performance metrics and setting a price target of $82.00. The firm noted improvements in credit quality metrics, particularly in delinquencies and net charge-offs, aligning with expectations for first-quarter losses to outperform historical patterns. Furthermore, Synchrony Financial introduced new products, including Synchrony Pay Later, and added 5 million new accounts in the fourth quarter of 2024. These developments reflect the company’s ongoing efforts to enhance its market presence and financial health.
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