Synaptics (NASDAQ:SYNA) Posts Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Synaptics reported adjusted EPS of $1.26, edging past the $1.25 consensus estimate, but quarterly revenue of $294 million fell short of analysts’ $315.56 million forecast.
• Shares fell $1.09 to $116.40 in Thursday trading. The company reported a negative net margin of 41% and return on equity of 4.37%.
• Analyst sentiment is mostly neutral: 11 analysts rate the stock Hold, versus two Buy and one Sell, with a consensus price target of $123.09.

Synaptics (NASDAQ:SYNA - Get Free Report) announced its earnings results on Thursday. The software maker reported $1.26 EPS for the quarter, beating analysts' consensus estimates of $1.25 by $0.01, FiscalAI reports. Synaptics had a negative net margin of 41.00% and a positive return on equity of 4.37%. The business had revenue of $294.00 million during the quarter, compared to analysts' expectations of $315.56 million.

Synaptics Price Performance

SYNA stock traded down $1.09 during trading on Thursday, reaching $116.40. 2,644,211 shares of the company were exchanged, compared to its average volume of 918,349. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.90 and a current ratio of 1.12. The stock's 50 day moving average price is $107.18 and its 200 day moving average price is $103.12. Synaptics has a 52-week low of $58.28 and a 52-week high of $149.11. The company has a market cap of $4.62 billion, a P/E ratio of -9.20 and a beta of 1.94.

Analysts Set New Price Targets

A number of research firms recently weighed in on SYNA. Susquehanna dropped their price objective on shares of Synaptics from $140.00 to $125.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 21st. Zacks Research cut shares of Synaptics from a "strong-buy" rating to a "hold" rating in a research note on Friday, October 9th. Craig Hallum set a $105.00 target price on shares of Synaptics in a research note on Friday, August 7th. Weiss Ratings downgraded shares of Synaptics from a "sell (d)" rating to a "sell (d-)" rating in a report on Tuesday, August 11th. Finally, Rosenblatt Securities raised their price objective on shares of Synaptics from $115.00 to $123.00 and gave the company a "neutral" rating in a research report on Friday, October 2nd. Two equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $123.09.

Insider Buying and Selling at Synaptics

In related news, insider Lisa Bodensteiner sold 334 shares of the firm's stock in a transaction that occurred on Friday, September 18th. The shares were sold at an average price of $92.63, for a total transaction of $30,938.42. Following the sale, the insider owned 77,518 shares in the company, valued at approximately $7,180,492.34. This trade represents a 0.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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. Also, insider Vikram Gupta sold 4,277 shares of the stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $94.49, for a total value of $404,133.73. Following the transaction, the insider owned 99,191 shares in the company, valued at $9,372,557.59. This trade represents a 4.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 15,591 shares of company stock valued at $1,571,750. Insiders own 0.70% of the company's stock.

Synaptics Company Profile

Synaptics Incorporated NASDAQ: SYNA is a fabless semiconductor company that develops technologies for human-machine interaction, connectivity and edge computing. Its solutions are designed to help people interact with electronic devices and enable connected products to process data closer to where it is generated.

The company's product portfolio includes touch and gesture controllers, touchpads, touchscreen and display technologies, fingerprint sensors, wireless connectivity solutions, video and audio products, and system-on-chip platforms.

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