TD SYNNEX Corporation (NYSE:SNX) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on TD SYNNEX, with eight buy ratings and two holds. The average 12-month price target is $305.75, above the reported share price of $259.58.
• Third-quarter results and fourth-quarter guidance exceeded expectations: adjusted EPS reached $5.68 versus $4.70 expected, while revenue rose 37.7% year over year to $21.56 billion. Management cited continued strength in data-center and AI demand.
• Strong growth is creating cash-flow concerns. AI-related expansion reportedly consumed roughly $1 billion in free cash flow during the quarter, driven by higher inventory and working-capital needs, tempering investor response despite the earnings and outlook beats.

TD SYNNEX Corporation (NYSE:SNX - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the ten brokerages that are currently covering the stock, Marketbeat reports. Two investment analysts have rated the stock with a hold recommendation and eight have assigned a buy recommendation to the company. The average 1 year price objective among analysts that have issued ratings on the stock in the last year is $305.75.

SNX has been the topic of a number of recent analyst reports. Zacks Research lowered shares of TD SYNNEX from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 25th. Royal Bank Of Canada set a $340.00 target price on TD SYNNEX in a research note on Friday, June 26th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of TD SYNNEX in a research report on Monday, September 14th. Barclays boosted their price target on TD SYNNEX from $278.00 to $287.00 and gave the stock an "equal weight" rating in a research note on Tuesday, September 8th. Finally, UBS Group increased their price target on TD SYNNEX from $310.00 to $352.00 and gave the company a "buy" rating in a report on Friday, June 26th.

Trending Headlines about TD SYNNEX

Here are the key news stories impacting TD SYNNEX this week:

• Positive Sentiment: Q3 results significantly exceeded expectations. TD SYNNEX reported adjusted EPS of $5.68 versus the $4.70 consensus estimate, while revenue rose 37.7% year over year to $21.56 billion, well above expectations of $18.91 billion. TD SYNNEX Q3 earnings report
• Positive Sentiment: Management issued an optimistic Q4 outlook. EPS guidance of $5.65-$6.15 and revenue guidance of $21.8-$22.6 billion both topped consensus estimates of $4.80 and $19.4 billion, respectively. TD SYNNEX data center demand article
• Positive Sentiment: Data-center and AI demand remains strong. The company said demand is not weakening, with its Hyve Solutions business benefiting from AI infrastructure growth. TD SYNNEX also continues expanding its enterprise AI ecosystem, including its Anthropic reseller authorization for Amazon Bedrock.
• Positive Sentiment: Shareholder returns remain supported by the dividend. The company declared a quarterly dividend of $0.48 per share, or $1.92 annualized, representing a yield of approximately 0.7%. The dividend is payable October 30 to shareholders of record October 16.
• Neutral Sentiment: Growth is increasingly concentrated in higher-risk areas. Distribution remains the primary earnings contributor, while Hyve’s AI-related expansion is producing impressive growth but also margin compression, higher inventory requirements and greater working-capital needs. TD Synnex AI growth and cash flow analysis
• Negative Sentiment: Free cash flow was the key concern. Rapid expansion consumed roughly $1 billion of free cash flow during the quarter, raising concerns about inventory growth, working-capital discipline and whether strong AI revenue growth will translate into shareholder cash returns. This cash-flow issue outweighed the earnings and guidance beats for many investors, prompting a rating downgrade and a selloff. TD Synnex earnings and cash flow article

Insider Buying and Selling

In related news, Director Richard Hume sold 5,000 shares of TD SYNNEX stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $262.21, for a total value of $1,311,050.00. Following the completion of the sale, the director owned 13,537 shares in the company, valued at approximately $3,549,536.77. The trade was a 26.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ann Vezina sold 1,273 shares of the company's stock in a transaction on Friday, July 31st. The shares were sold at an average price of $256.05, for a total transaction of $325,951.65. Following the completion of the sale, the director directly owned 5,828 shares in the company, valued at $1,492,259.40. This represents a 17.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 11,273 shares of company stock valued at $2,851,852 in the last three months. Corporate insiders own 0.70% of the company's stock.

Institutional Investors Weigh In On TD SYNNEX

A number of institutional investors have recently modified their holdings of SNX. BlackRock Inc. bought a new stake in TD SYNNEX in the second quarter valued at about $1,958,683,000. Geode Capital Management LLC grew its position in shares of TD SYNNEX by 6.9% in the 4th quarter. Geode Capital Management LLC now owns 1,532,784 shares of the business services provider's stock worth $230,315,000 after acquiring an additional 99,090 shares in the last quarter. Metropolis Capital Ltd increased its holdings in shares of TD SYNNEX by 9.5% in the 1st quarter. Metropolis Capital Ltd now owns 1,281,307 shares of the business services provider's stock valued at $216,169,000 after acquiring an additional 111,222 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of TD SYNNEX during the 2nd quarter valued at approximately $149,728,000. Finally, Norges Bank bought a new position in TD SYNNEX during the fourth quarter worth $148,559,000. Institutional investors and hedge funds own 84.00% of the company's stock.

TD SYNNEX Stock Performance

TD SYNNEX stock opened at $259.58 on Friday. The stock's 50 day moving average price is $256.95 and its 200 day moving average price is $237.22. The firm has a market capitalization of $20.76 billion, a PE ratio of 18.58, a price-to-earnings-growth ratio of 0.79 and a beta of 1.43. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.64 and a current ratio of 1.20. TD SYNNEX has a one year low of $142.22 and a one year high of $298.77.

TD SYNNEX (NYSE:SNX - Get Free Report) last issued its quarterly earnings data on Thursday, September 24th. The business services provider reported $5.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.70 by $0.98. The company had revenue of $21.56 billion during the quarter, compared to the consensus estimate of $18.91 billion. TD SYNNEX had a net margin of 1.63% and a return on equity of 15.37%. TD SYNNEX's revenue for the quarter was up 37.7% on a year-over-year basis. During the same quarter last year, the company earned $3.58 earnings per share. TD SYNNEX has set its Q4 2026 guidance at 5.650-6.150 EPS. As a group, sell-side analysts expect that TD SYNNEX will post 18.16 EPS for the current fiscal year.

TD SYNNEX Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Friday, October 16th will be paid a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Friday, October 16th. TD SYNNEX's dividend payout ratio is 13.74%.

About TD SYNNEX

TD SYNNEX Corporation NYSE: SNX is a global technology distributor and solutions aggregator that connects technology manufacturers with resellers, systems integrators, managed service providers and other business partners. The company helps its partners design, procure, configure and deliver technology solutions to organizations across a range of industries.

Its portfolio includes personal computing devices, peripherals, networking equipment, data-center infrastructure, cybersecurity products, software and cloud services.

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