SoFi CEO Anthony Noto joins ‘Squawk on the Street’ to discuss the company’s recent quarterly earnings results and the subsequent stock reaction. He also provides insights on credit quality, SoFi’s growth strategy, and the competitive landscape in the financial services industry.
Synchrony Financial (SYF) has witnessed a significant recovery in market sentiment, with its stock price surging nearly 65% since October 2023. Despite a recent downgrade to a regular ‘Buy’ rating, the stock has still returned 18.6% in the past quarter, outperforming the Financial sector average. The company’s loan receivables continue to grow, with delinquencies showing signs of peaking. Synchrony has also made strategic moves, including the sale of its Pets Best pet insurance business and the acquisition of Ally Financial’s point-of-sale lending portfolio. The company’s valuation remains attractive, with a non-GAAP P/E of 7.5 and a P/B of 1.14. While risks remain, including higher charge-offs and reduced late fee income, Synchrony’s strong growth and improving credit quality position it well for future success.
Peapack-Gladstone Financial Corp. (NASDAQ: PGC) shares experienced a significant decline of 7.8% during Wednesday’s trading session. This substantial drop followed a downgrade from Piper Sandler, which changed its rating on the regional bank to Neutral from Overweight. The downgrade was prompted by worse-than-expected first-quarter results and concerns about the company’s overall financial outlook.
