This article was originally published on TipRanks.com.
Connecticut-based Synchrony Financial’s (SYF) Board of Directors has approved to increase the company’s share buyback plan by $1 billion.
The announcement was made after the market closed on Wednesday. Thereafter, shares of Synchrony gained 1.7% in the extended trading session.
The company offers consumer financing and consumer banking products across industries like digital, retail, home, auto, travel, health and pet.
Previous Stock Repurchase Program
As of September 30, the company had $1.2 billion remaining under its earlier announced stock repurchase program. This takes the total amount available for share repurchases to $2.2 billion for the period ending June 30, 2022.
Investment in Skipify
Meanwhile, Synchrony has made a strategic investment in San Francisco-based digital payments company Skipify.
Synchrony also plans to partner with Skipify to commercialize the latter’s capabilities across its financial ecosystem and merchant network.
The company said, “Synchrony’s partnership with Skipify will bring one-tap checkout across emails, ads, and texts, in addition to websites. Synchrony’s merchant partners will be able to embed the enhanced checkout solution offering consumers the ability to complete their purchase with one of their Synchrony-issued credit cards in one tap and automatically apply any applicable card rewards and discounts.”
“Merchants using Skipify’s solutions have seen a 30% increase in sales conversions,” Synchrony added.
Overall, the stock has a Strong Buy consensus rating based on 6 Buys and 2 Holds. The average Synchrony Financial stock forecast of $58.38 implies 25% upside potential. Shares have gained 41.8% over the past year.
According to TipRanks’ Risk Factors tool, Synchrony is at risk mainly from two factors: Finance & Corporate and Legal & Regulatory, which account for 65% and 29%, respectively, of the total 34 risks identified for the stock.
Under the Finance & Corporate risk category, the company has 22 risks, and under the Legal & Regulatory category, there are 10 risks. The details of these risks can be found on the TipRanks website.
Lowe’s 2022 Guidance Misses Estimates; Shares Up 2%
Apple Shelves Controversial CSAM Scanning Feature – Report
Nucor’s Q4 Earnings Guidance Disappoints; Shares Drop