Yahoo Finance Trade Alert: The Director Of Synchrony Financial (NYSE:SYF), P. Parker, Has Just Spent US$233k Buying A Few More Shares
Investors who take an interest in Synchrony Financial (NYSE:SYF) should definitely note that the Director, P. Parker, recently paid US$23.32 per share to buy US$233k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
Check out our latest analysis for Synchrony Financial
The Last 12 Months Of Insider Transactions At Synchrony Financial
The Independent Director Fernando Aguirre made the biggest insider purchase in the last 12 months. That single transaction was for US$253k worth of shares at a price of US$16.55 each. We do like to see buying, but this purchase was made at well below the current price of US$22.13. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Synchrony Financial insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$19.05. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Synchrony Financial is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.2% of Synchrony Financial shares, worth about US$30m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Synchrony Financial Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Synchrony Financial shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 2 warning signs for Synchrony Financial and we suggest you have a look.
But note: Synchrony Financial may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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