Barclays Initiates Coverage on Synaptics (NASDAQ:SYNA)

Key Points

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Equities researchers at Barclays assumed coverage on shares of Synaptics (NASDAQ:SYNA - Get Free Report) in a research note issued on Monday, MarketBeat reports. The brokerage set an "overweight" rating and a $78.00 price target on the software maker's stock. Barclays's target price would indicate a potential upside of 9.17% from the company's current price.

Several other analysts have also recently weighed in on SYNA. Needham & Company LLC started coverage on shares of Synaptics in a research note on Friday, May 9th. They issued a "buy" rating and a $80.00 price objective for the company. Wall Street Zen upgraded shares of Synaptics from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. 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 given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $91.33.

Synaptics Stock Performance

Synaptics stock traded up $5.13 during midday trading on Monday, hitting $71.45. The company's stock had a trading volume of 678,028 shares, compared to its average volume of 534,178. Synaptics has a 1-year low of $41.80 and a 1-year high of $89.81. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.78 and a quick ratio of 2.26. The company has a 50-day moving average price of $65.93 and a two-hundred day moving average price of $62.79. The company has a market cap of $2.76 billion, a price-to-earnings ratio of -59.05 and a beta of 1.61.

Synaptics (NASDAQ:SYNA - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The software maker reported $1.01 earnings per share for the quarter, topping the consensus estimate 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 business had revenue of $282.80 million during the quarter, compared to analysts' expectations of $280.12 million. During the same quarter in the previous year, the company earned $0.64 EPS. The business's revenue was up 14.3% on a year-over-year basis. Synaptics has set its Q1 2026 guidance at 1.490-1.690 EPS. As a group, sell-side analysts predict that Synaptics will post 0.96 earnings per share for the current year.

Synaptics declared that its Board of Directors has approved a stock repurchase plan on Thursday, August 7th that permits the company to repurchase $150.00 million in shares. This repurchase authorization permits the software maker to purchase up to 6.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On Synaptics

Hedge funds and other institutional investors have recently made changes to their positions in the company. Johnson Investment Counsel Inc. acquired a new position in shares of Synaptics in the 1st quarter valued at approximately $216,000. Bank of Montreal Can grew its holdings in shares of Synaptics by 19.3% during the 4th quarter. Bank of Montreal Can now owns 5,161 shares of the software maker's stock valued at $394,000 after purchasing an additional 834 shares during the last quarter. SG Americas Securities LLC bought a new stake in shares of Synaptics during the 1st quarter valued at approximately $320,000. Raymond James Financial Inc. bought a new stake in shares of Synaptics during the 4th quarter valued at approximately $371,000. Finally, Nuveen Asset Management LLC grew its holdings in shares of Synaptics by 4.3% during the 4th quarter. Nuveen Asset Management LLC now owns 115,441 shares of the software maker's stock valued at $8,810,000 after purchasing an additional 4,760 shares during the last quarter. 99.43% of the stock is currently owned by institutional investors and hedge funds.

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.