Synaptics (NASDAQ:SYNA) to Repurchase $150.00 million in Outstanding Shares

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 of Directors has approved a stock repurchase program on Thursday, August 7th, RTT News reports. The company plans to buyback $150.00 million in outstanding shares. This buyback authorization authorizes the software maker to repurchase up to 6.5% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board believes its stock is undervalued.

Synaptics Stock Up 1.4%

Shares of NASDAQ SYNA traded up $0.91 during midday trading on Monday, reaching $64.43. The company's stock had a trading volume of 141,592 shares, compared to its average volume of 535,685. The stock has a 50 day simple moving average of $64.95 and a 200-day simple moving average of $63.74. The company has a current ratio of 2.78, a quick ratio of 2.26 and a debt-to-equity ratio of 0.60. The stock has a market capitalization of $2.48 billion, a price-to-earnings ratio of -53.23 and a beta of 1.61. Synaptics has a fifty-two week low of $41.80 and a fifty-two week high of $89.81.

Synaptics (NASDAQ:SYNA - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The software maker reported $1.01 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 during the quarter, compared to analysts' expectations of $280.12 million. During the same period in the prior year, the firm posted $0.64 earnings per share. The business's quarterly revenue was up 14.3% compared to the same quarter last year. Equities research analysts predict that Synaptics will post 0.96 earnings per share for the current year.

Analyst Upgrades and Downgrades

SYNA has been the subject of several research analyst reports. Wall Street Zen upgraded shares of Synaptics from a "hold" rating to a "buy" rating in a report on Saturday. Needham & Company LLC initiated coverage on shares of Synaptics in a research note on Friday, May 9th. They issued a "buy" rating and a $80.00 target price for the company. One research analyst has rated the stock with a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus target price of $94.00.

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.