Synaptics (NASDAQ:SYNA) Stock Price Down 8.7% - Here's Why

Key Points

• Synaptics shares fell 8.7% to about $88.83 in mid-day trading, with volume roughly 57% below the average session level.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and an average price target of $123.91, despite some target increases and one recent downgrade to “Hold.”
• The company slightly exceeded quarterly earnings and revenue expectations, with revenue up 8.9% year over year, but it reported a negative net margin of 41%. Insiders have also sold about $1.62 million worth of shares over the past three months.

Synaptics Incorporated (NASDAQ:SYNA - Get Free Report) shares dropped 8.7% during mid-day trading on Wednesday . The company traded as low as $89.91 and last traded at $88.8340. 371,247 shares traded hands during trading, a decline of 57% from the average session volume of 865,932 shares. The stock had previously closed at $97.32.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. Mizuho increased their price target on shares of Synaptics from $128.00 to $170.00 and gave the company an "outperform" rating in a research report on Wednesday, July 1st. Craig Hallum set a $105.00 price objective on Synaptics in a research report on Friday, August 7th. Northland Securities lowered Synaptics from a "strong-buy" rating to a "hold" rating in a research note on Friday, June 26th. Barclays reiterated an "equal weight" rating and set a $135.00 target price (up from $110.00) on shares of Synaptics in a report on Friday, June 26th. Finally, Susquehanna dropped their price target on Synaptics from $140.00 to $125.00 and set a "neutral" rating for the company in a research report on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Synaptics has an average rating of "Hold" and a consensus price target of $123.91.

Synaptics Stock Performance

The company has a market capitalization of $3.49 billion, a PE ratio of -7.02 and a beta of 1.94. The stock's fifty day simple moving average is $106.21 and its 200-day simple moving average is $104.69. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.90 and a current ratio of 1.12.

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

Insider Buying and Selling at Synaptics

In other Synaptics news, insider Esther Song sold 437 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $103.68, for a total transaction of $45,308.16. Following the transaction, the insider owned 14,683 shares of the company's stock, valued at $1,522,333.44. This represents a 2.89% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. 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 firm's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $103.65, for a total value of $443,311.05. Following the sale, the insider owned 103,468 shares in the company, valued at $10,724,458.20. This trade represents a 3.97% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 15,867 shares of company stock worth $1,624,996. Insiders own 0.50% of the company's stock.

Institutional Trading of Synaptics

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. ABS Investment Management LLC acquired a new position in Synaptics in the second quarter valued at $310,575,000. CoreCap Advisors LLC purchased a new position in shares of Synaptics in the 2nd quarter worth about $25,000. Allworth Financial LP purchased a new position in shares of Synaptics in the 2nd quarter worth about $33,000. Global Retirement Partners LLC acquired a new position in shares of Synaptics in the 2nd quarter valued at about $61,000. Finally, State of Wyoming acquired a new position in shares of Synaptics in the 2nd quarter valued at about $65,000. Hedge funds and other institutional investors own 99.43% of the company's stock.

About Synaptics

Synaptics Incorporated NASDAQ: SYNA is a fabless semiconductor company that develops technologies for human-machine interaction, connectivity and edge computing. Its solutions are used in consumer electronics, automotive systems, enterprise equipment and other connected devices.

The company's products include touchpads, touchscreens, fingerprint sensors, display and video interface technologies, and related human-interface solutions. Synaptics also develops wireless connectivity products, including technologies supporting Wi-Fi, Bluetooth and other connected-device applications, as well as semiconductor platforms designed to enable edge artificial intelligence and the Internet of Things.

Founded in 1986 and headquartered in Santa Clara, California, Synaptics serves customers and original equipment manufacturers globally.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.