Synaptics (NASDAQ:SYNA) Stock Rating Lowered by Wells Fargo & Company

Key Points

• Wells Fargo downgraded Synaptics from “strong buy” to “hold,” joining several analysts who have recently reduced their ratings. The stock has a consensus “hold” rating and a $123.09 price target.
• Synaptics shares were up 14.1%, opening at $121.10, while the company reported quarterly EPS of $1.23 and revenue of $308 million, both slightly above analyst expectations.
• The company’s proposed all-cash acquisition by onsemi, reportedly valued at $5.7 billion or $123 per share, has provided shareholders with a premium and greater value certainty, supporting buying interest.

Synaptics (NASDAQ:SYNA - Get Free Report) was downgraded by Wells Fargo & Company from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Friday, Zacks reports.

A number of other equities analysts have also recently commented on the stock. Zacks Research upgraded shares of Synaptics from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 17th. Deutsche Bank Aktiengesellschaft lowered shares of Synaptics from a "buy" rating to a "hold" rating and set a $125.00 price target for the company. in a research report on Monday, June 29th. Barclays reaffirmed an "equal weight" rating and set a $135.00 price objective (up from $110.00) on shares of Synaptics in a research note on Friday, June 26th. TD Cowen lowered Synaptics from a "buy" rating to a "hold" rating in a research note on Friday, June 26th. Finally, Needham & Company LLC cut Synaptics from a "buy" rating to a "hold" rating in a report on Friday, June 26th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $123.09.

Synaptics Stock Up 14.1%

Shares of NASDAQ SYNA opened at $121.10 on Friday. Synaptics has a one year low of $58.28 and a one year high of $149.11. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.12 and a quick ratio of 0.90. The firm's 50 day simple moving average is $100.95 and its two-hundred day simple moving average is $106.57. The stock has a market capitalization of $4.81 billion, a P/E ratio of -9.57 and a beta of 1.96.

Synaptics (NASDAQ:SYNA - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The software maker reported $1.23 EPS for the quarter, topping the consensus estimate of $1.21 by $0.02. Synaptics had a negative net margin of 41.00% and a positive return on equity of 4.37%. The firm had revenue of $308.00 million for the quarter, compared to the consensus estimate of $305.32 million. During the same period last year, the firm posted $1.01 earnings per share. The business's revenue was up 8.9% compared to the same quarter last year. As a group, analysts expect that Synaptics will post 1.98 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Vikram Gupta sold 4,277 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $94.49, for a total transaction of $404,133.73. Following the completion of the sale, the insider directly owned 99,191 shares in the company, valued at approximately $9,372,557.59. This represents a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Lisa Bodensteiner sold 334 shares of the firm's stock in a transaction dated Friday, September 18th. The stock was sold at an average price of $92.63, for a total value of $30,938.42. Following the completion of the sale, the insider directly owned 77,518 shares in the company, valued at $7,180,492.34. The trade was a 0.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 15,951 shares of company stock valued at $1,612,862 in the last quarter. Insiders own 0.70% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Tidal Investments LLC purchased a new position in Synaptics during the 2nd quarter valued at $711,000. Engineers Gate Manager LP lifted its position in shares of Synaptics by 65.8% in the 2nd quarter. Engineers Gate Manager LP now owns 24,078 shares of the software maker's stock worth $2,991,000 after purchasing an additional 9,553 shares during the period. Corient Private Wealth LP purchased a new stake in shares of Synaptics in the 2nd quarter worth about $239,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Synaptics during the 2nd quarter valued at about $593,000. Finally, Syon Capital LLC bought a new stake in shares of Synaptics during the 2nd quarter valued at about $231,000. Institutional investors own 99.43% of the company's stock.

Synaptics News Summary

Here are the key news stories impacting Synaptics this week:

• Positive Sentiment: The all-cash structure provides Synaptics shareholders with greater value certainty and eliminates the dilution risk associated with receiving onsemi stock. The revised agreement followed an unsolicited competing proposal for Synaptics. onsemi And Synaptics Revise Merger Agreement To $5.7 Billion
• Positive Sentiment: Bank of America said the revised transaction could provide a larger earnings benefit than initially expected because the cash structure removes share dilution. Analysts also cited about $200 million in targeted synergies and potential expansion into a roughly $30 billion total addressable market. ON Semiconductor's revised Synaptics deal improves earnings outlook, says BofA
• Positive Sentiment: The takeover offer gives Synaptics investors a premium and a clearer exit value, driving strong buying interest and unusually heavy trading volume. Rosenblatt Securities raised its price target to $123, matching the cash offer. Synaptics Stock Rises After onsemi Revises Deal to $123 Per Share

About Synaptics

Synaptics Incorporated NASDAQ: SYNA is a fabless semiconductor company that develops technologies enabling people to interact with digital devices. Its products combine sensing, processing, connectivity and artificial intelligence capabilities for consumer electronics, automotive systems and Internet of Things applications.

The company's portfolio includes touch and display controllers, touchpads, fingerprint sensors, audio and voice-processing solutions, wireless connectivity products, and video and vision processors.

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