Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Synchrony Financial (SYF) A Good Stock To Buy?

As one would reasonably expect, key money managers have been driving this bullishness. Highbridge Capital Management assembled the largest position in Synchrony Financial (NYSE:SYF). Highbridge Capital Management had $31.3 million invested in the company at the end of the quarter. Robert Henry Lynch’s Aristeia Capital also made a $7.8 million investment in the stock during the quarter. The other funds with brand new SYF positions are Jim Simons’s Renaissance Technologies, George Hall’s Clinton Group, and Matthew Tewksbury’s Stevens Capital Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Synchrony Financial (NYSE:SYF) but similarly valued. These stocks are American Airlines Group Inc (NASDAQ:AAL), IntercontinentalExchange Inc (NYSE:ICE), PG&E Corporation (NYSE:PCG), and Exelon Corporation (NYSE:EXC). All of these stocks’ market caps are closest to SYF’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AAL 77 1824096 -8
ICE 38 2017380 -5
PCG 20 547876 -2
EXC 40 954812 10

As you can see these stocks had an average of 43.75 hedge funds with bullish positions and the average amount invested in these stocks was $1.34 billion, significantly higher than the $292 million figure in SYF’s case. American Airlines Group Inc (NASDAQ:AAL) is the most popular stock in this table. On the other hand PG&E Corporation (NYSE:PCG) is the least popular one with only 20 bullish hedge fund positions. Synchrony Financial (NYSE:SYF) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard AAL might be a better candidate to consider for a long bet.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...