Synaptics (NASDAQ:SYNA) Sees Unusually-High Trading Volume - Still a Buy?

Key Points

• Synaptics shares saw unusually heavy trading volume on Friday, with 963,129 shares changing hands, up 16% from the prior session, and the stock last traded around $128.63.
• onsemi has agreed to buy Synaptics in an all-stock deal valued at about $7 billion, which has lifted the stock but also triggered a mixed analyst response and shareholder fairness investigations.
• Analyst sentiment is cautious overall: the consensus rating remains “Hold” with an average price target of $128.27, while some firms have downgraded the stock or trimmed targets after the takeover announcement.

Synaptics Incorporated (NASDAQ:SYNA - Get Free Report) shares saw strong trading volume on Friday . 963,129 shares traded hands during trading, an increase of 16% from the previous session's volume of 830,761 shares.The stock last traded at $128.6320 and had previously closed at $125.62.

Synaptics News Summary

Here are the key news stories impacting Synaptics this week:

• Positive Sentiment: Synaptics shares rose on the announcement that onsemi will acquire the company in an all-stock transaction valued at about $7 billion, signaling strong strategic demand for its technology. Reuters: Onsemi to buy Synaptics in $7 billion all-stock deal
• Positive Sentiment: Analysts noted the deal could boost Synaptics’ role in AI and edge applications, and some price targets were reiterated despite the takeover news. Benzinga: Analysts revise forecasts on Synaptics after better-than-expected Q3 results
• Neutral Sentiment: Rosenblatt reaffirmed a neutral rating but lowered its price target to $160 from $180, reflecting a more cautious valuation view after the deal. Benzinga: Rosenblatt reaffirmed neutral rating on Synaptics
• Neutral Sentiment: Needham downgraded Synaptics from buy to hold, suggesting some analysts see limited near-term upside once acquisition terms are factored in. Benzinga: Needham downgrades Synaptics to hold
• Negative Sentiment: Law firms have launched shareholder investigations into whether Synaptics is getting a fair price in the transaction, adding potential legal overhang. PR Newswire: Shareholder alert regarding Synaptics transaction

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. Susquehanna cut shares of Synaptics from a "positive" rating to a "neutral" rating and raised their price objective for the company from $125.00 to $140.00 in a research note on Friday. Northland Securities set a $123.00 price target on Synaptics in a research report on Friday, May 8th. JPMorgan Chase & Co. lifted their price objective on Synaptics from $100.00 to $115.00 and gave the company an "overweight" rating in a report on Friday, May 8th. Wells Fargo & Company increased their target price on Synaptics from $120.00 to $155.00 and gave the stock an "overweight" rating in a research note on Tuesday, June 9th. Finally, Craig Hallum reaffirmed a "hold" rating and issued a $145.00 price target on shares of Synaptics in a research note on Friday. Six research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $128.27.

Synaptics Stock Down 0.8%

The stock's fifty day moving average price is $121.09 and its 200-day moving average price is $94.13. The company has a quick ratio of 2.39, a current ratio of 3.04 and a debt-to-equity ratio of 0.62. The company has a market capitalization of $4.82 billion, a price-to-earnings ratio of -100.43, a P/E/G ratio of 4.17 and a beta of 1.98.

Synaptics (NASDAQ:SYNA - Get Free Report) last announced its earnings results on Thursday, May 7th. The software maker reported $1.09 EPS for the quarter, topping the consensus estimate of $1.01 by $0.08. Synaptics had a negative net margin of 4.10% and a positive return on equity of 4.32%. The business had revenue of $294.20 million during the quarter, compared to analysts' expectations of $290.51 million. During the same quarter in the prior year, the company posted $0.90 earnings per share. The firm's revenue was up 10.4% on a year-over-year basis. Synaptics has set its Q4 2026 guidance at 1.050-1.350 EPS. On average, sell-side analysts predict that Synaptics Incorporated will post 1.3 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Synaptics news, insider Esther Song sold 8,833 shares of the business's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $141.17, for a total transaction of $1,246,954.61. Following the transaction, the insider owned 12,421 shares of the company's stock, valued at $1,753,472.57. The trade was a 41.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Lisa Bodensteiner sold 334 shares of the company's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $138.28, for a total value of $46,185.52. Following the sale, the insider owned 61,989 shares in the company, valued at approximately $8,571,838.92. This represents a 0.54% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Over the last quarter, insiders have sold 16,183 shares of company stock worth $1,978,694. Corporate insiders own 0.50% of the company's stock.

Institutional Trading of Synaptics

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. CIBC Private Wealth Group LLC lifted its position in shares of Synaptics by 119.5% in the fourth quarter. CIBC Private Wealth Group LLC now owns 349 shares of the software maker's stock valued at $26,000 after buying an additional 190 shares during the last quarter. Leonteq Securities AG acquired a new stake in Synaptics during the 4th quarter valued at $43,000. Optiver Holding B.V. boosted its position in Synaptics by 40.2% during the third quarter. Optiver Holding B.V. now owns 593 shares of the software maker's stock worth $41,000 after purchasing an additional 170 shares during the period. Lazard Asset Management LLC bought a new position in Synaptics during the second quarter worth $54,000. Finally, Kemnay Advisory Services Inc. acquired a new position in shares of Synaptics in the fourth quarter valued at $70,000. 99.43% of the stock is owned by institutional investors.

Synaptics Company Profile

Synaptics Incorporated is a global developer and supplier of human interface solutions for computing, networking, communications, and entertainment devices. The company specializes in the design, development and integration of custom chips and software that enable intuitive, natural user interactions. Synaptics solutions support touch, display, audio and biometrics functions, facilitating seamless human-to-machine interfaces across a broad range of end markets.

Key product offerings include touch controllers for laptops and tablets, capacitive touchscreens and display drivers for mobile devices, fingerprint sensors and secure authentication modules, as well as advanced audio processing and voice enhancement technologies.

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