Synaptics (NASDAQ:SYNA) Board of Directors Initiates Share Buyback Program

Key Points

• Synaptics' board has approved a $150 million stock buyback program, allowing the company to repurchase up to 6.5% of its shares. This indicates confidence from the board in the stock's current valuation.
• The company reported a 12.3% increase in quarterly revenue year-over-year, reaching $266.60 million, with earnings per share of $0.90, surpassing estimates.
• Analysts have a consensus rating of "Buy" on Synaptics' stock, with a price target averaging $93.75, following a new "buy" rating from Needham & Company.

Synaptics (NASDAQ:SYNA - Get Free Report) announced that its board has approved a stock buyback plan on Thursday, August 7th, RTT News reports. The company plans to buyback $150.00 million in shares. This buyback authorization permits the software maker to purchase up to 6.5% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board believes its stock is undervalued.

Synaptics Stock Performance

SYNA stock traded down $0.40 during trading on Thursday, reaching $59.70. The company had a trading volume of 729,183 shares, compared to its average volume of 372,583. The company has a market cap of $2.30 billion, a price-to-earnings ratio of 14.46 and a beta of 1.61. Synaptics has a twelve month low of $41.80 and a twelve month high of $89.81. The company has a debt-to-equity ratio of 0.60, a quick ratio of 2.34 and a current ratio of 2.88. The firm has a 50-day simple moving average of $64.85 and a 200-day simple moving average of $64.18.

Synaptics (NASDAQ:SYNA - Get Free Report) last posted its quarterly earnings data on Thursday, May 8th. The software maker reported $0.90 EPS for the quarter, topping the consensus estimate of $0.85 by $0.05. Synaptics had a net margin of 15.90% and a return on equity of 3.16%. The business had revenue of $266.60 million during the quarter, compared to the consensus estimate of $265.03 million. During the same period in the previous year, the firm posted $0.53 earnings per share. The business's revenue for the quarter was up 12.3% compared to the same quarter last year. As a group, sell-side analysts expect that Synaptics will post 0.96 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Separately, Needham & Company LLC initiated coverage on shares of Synaptics in a research report on Friday, May 9th. They issued a "buy" rating and a $80.00 price objective on the stock. One investment analyst has rated the stock with a hold rating, six have given a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat, Synaptics has a consensus rating of "Buy" and an average price target of $93.75.

Synaptics Company Profile

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.

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