Synaptics (NASDAQ:SYNA) Stock Rating Lowered by Wall Street Zen

Key Points

• Synaptics has been downgraded by Wall Street Zen from a "buy" rating to a "hold" rating, amid mixed ratings from other analysts regarding the stock's outlook.
• The company reported earnings of $1.01 per share in its latest quarter, slightly above analyst expectations, with a revenue increase of 14.3% year-over-year.
• Synaptics has initiated a $150 million stock buyback program, indicating the Board's belief that the stock is currently undervalued.

Synaptics (NASDAQ:SYNA - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Friday.

A number of other equities analysts also recently commented on SYNA. Needham & Company LLC initiated coverage on shares of Synaptics in a research note on Friday, May 9th. They set a "buy" rating and a $80.00 target price on the stock. Barclays assumed coverage on shares of Synaptics in a research note on Monday, August 18th. They set an "overweight" rating and a $78.00 target price on the stock. Finally, Zacks Research downgraded shares of Synaptics from a "hold" rating to a "strong sell" rating in a research note on Friday, August 15th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $91.33.

Synaptics Trading Up 0.8%

SYNA stock traded up $0.57 during trading on Friday, reaching $71.37. 273,561 shares of the stock were exchanged, compared to its average volume of 523,540. 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 business has a 50 day moving average price of $66.52 and a 200-day moving average price of $62.91. Synaptics has a 1 year low of $41.80 and a 1 year high of $89.81. The firm has a market capitalization of $2.76 billion, a price-to-earnings ratio of -58.98 and a beta of 1.61.

Synaptics (NASDAQ:SYNA - Get Free Report) last issued its earnings results on Thursday, August 7th. The software maker reported $1.01 EPS for the quarter, topping analysts' consensus estimates of $1.00 by $0.01. Synaptics had a negative net margin of 4.45% and a positive return on equity of 4.32%. The company had revenue of $282.80 million for the quarter, compared to the consensus estimate of $280.12 million. During the same period in the previous year, the firm earned $0.64 earnings per share. Synaptics's quarterly revenue was up 14.3% compared to the same quarter last year. Synaptics has set its Q1 2026 guidance at 1.490-1.690 EPS. On average, research analysts predict that Synaptics will post 0.96 earnings per share for the current year.

Synaptics announced that its Board of Directors has authorized a stock repurchase program on Thursday, August 7th that allows the company to buyback $150.00 million in outstanding shares. This buyback authorization allows the software maker to purchase up to 6.5% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its shares are undervalued.

Institutional Investors Weigh In On Synaptics

Large investors have recently added to or reduced their stakes in the business. Invesco Ltd. grew its holdings in Synaptics by 0.9% during the 4th quarter. Invesco Ltd. now owns 82,249 shares of the software maker's stock worth $6,277,000 after acquiring an additional 697 shares in the last quarter. Raymond James Financial Inc. acquired a new position in Synaptics during the 4th quarter worth approximately $371,000. First Trust Advisors LP acquired a new position in Synaptics during the 4th quarter worth approximately $2,416,000. Dimensional Fund Advisors LP grew its holdings in Synaptics by 8.0% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,008,390 shares of the software maker's stock worth $76,960,000 after acquiring an additional 74,433 shares in the last quarter. Finally, MetLife Investment Management LLC grew its holdings in Synaptics by 8.4% during the 4th quarter. MetLife Investment Management LLC now owns 45,663 shares of the software maker's stock worth $3,485,000 after acquiring an additional 3,527 shares in the last quarter. 99.43% of the stock is owned by hedge funds and other institutional investors.

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.