Analysts Set Synaptics Incorporated (NASDAQ:SYNA) Target Price at $94.00

Key Points

• Synaptics Incorporated has received an average rating of "Buy" from seven analysts covering the stock, with an average target price of $94.00 over the next year.
• The company recently reported earnings of $1.01 per share, exceeding analysts' estimates of $1.00, while revenue climbed 14.3% year-over-year to $282.80 million.
• Synaptics announced a $150 million share buyback plan, indicating confidence from the board in the valuation of the company’s shares.

Synaptics Incorporated (NASDAQ:SYNA - Get Free Report) has earned a consensus rating of "Buy" from the seven analysts that are currently covering the company, Marketbeat reports. One analyst has rated the stock with a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $94.00.

SYNA has been the subject of several analyst reports. Wall Street Zen upgraded Synaptics from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Needham & Company LLC started coverage on shares of Synaptics in a research report on Friday, May 9th. They set a "buy" rating and a $80.00 price target on the stock.

Institutional Investors Weigh In On Synaptics

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Toronto Dominion Bank bought a new stake in shares of Synaptics in the 4th quarter worth $152,895,000. Ameriprise Financial Inc. grew its position in Synaptics by 22.5% during the first quarter. Ameriprise Financial Inc. now owns 6,098,453 shares of the software maker's stock valued at $388,587,000 after acquiring an additional 1,118,559 shares during the last quarter. Segall Bryant & Hamill LLC bought a new position in Synaptics during the first quarter valued at approximately $31,801,000. Norges Bank purchased a new stake in Synaptics in the second quarter worth $25,876,000. Finally, AQR Capital Management LLC lifted its position in Synaptics by 186.2% during the second quarter. AQR Capital Management LLC now owns 443,441 shares of the software maker's stock valued at $28,744,000 after buying an additional 288,523 shares during the period. 99.43% of the stock is owned by institutional investors.

Synaptics Stock Performance

Shares of SYNA traded down $1.23 during midday trading on Friday, reaching $66.80. 409,814 shares of the stock were exchanged, compared to its average volume of 481,933. The company has a market capitalization of $2.57 billion, a price-to-earnings ratio of -55.21 and a beta of 1.61. Synaptics has a twelve month low of $41.80 and a twelve month high of $89.81. The business's 50-day moving average price is $65.49 and its 200 day moving average price is $63.16. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.78 and a quick ratio of 2.26.

Synaptics (NASDAQ:SYNA - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The software maker reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.00 by $0.01. Synaptics had a positive return on equity of 4.32% and a negative net margin of 4.45%. The firm had revenue of $282.80 million for the quarter, compared to analysts' expectations of $280.12 million. During the same quarter in the previous year, the firm posted $0.64 EPS. The firm's revenue for the quarter was up 14.3% on a year-over-year basis. On average, sell-side analysts expect that Synaptics will post 0.96 EPS for the current fiscal year.

Synaptics announced that its board has initiated a share repurchase program on Thursday, August 7th that authorizes the company to buyback $150.00 million in shares. This buyback authorization authorizes the software maker to reacquire up to 6.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board believes its stock is undervalued.

About Synaptics

Synaptics Incorporated develops, markets, and sells semiconductor products worldwide. The company offers AudioSmart for voice and audio processing; ConnectSmart for high-speed video/audio/data connectivity; DisplayLink for transmitting compressed video frames across low bandwidth connections; VideoSmart that enables set-top boxes, over-the-top, streaming devices, soundbars, surveillance cameras, and smart displays; and ImagingSmart solutions.