Wall Street Zen Upgrades Synaptics (NASDAQ:SYNA) to Buy

Key Points

• Synaptics has received an upgrade from a "hold" to a "buy" rating by Wall Street Zen, reflecting positive sentiment from analysts towards the stock.
• The company reported a quarterly earnings per share of $1.01, exceeding expectations and demonstrating a year-over-year revenue increase of 14.3%.
• Synaptics has initiated a share buyback program authorizing $150 million in repurchases, indicating that the board believes the shares are undervalued.

Synaptics (NASDAQ:SYNA - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday.

Separately, Needham & Company LLC started coverage on Synaptics in a research note on Friday, May 9th. They issued a "buy" rating and a $80.00 price objective on the stock. One equities research analyst has rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, Synaptics presently has an average rating of "Buy" and an average target price of $94.00.

Synaptics Trading Up 5.8%

NASDAQ:SYNA traded up $3.74 during midday trading on Friday, hitting $67.86. The stock had a trading volume of 399,016 shares, compared to its average volume of 538,958. Synaptics has a one year low of $41.80 and a one year high of $89.81. The company has a market capitalization of $2.62 billion, a price-to-earnings ratio of -56.08 and a beta of 1.61. The stock has a 50-day moving average of $65.05 and a 200 day moving average of $63.61. The company has a quick ratio of 2.26, a current ratio of 2.78 and a debt-to-equity ratio of 0.60.

Synaptics (NASDAQ:SYNA - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The software maker reported $1.01 earnings per share (EPS) for the quarter, topping 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 company had revenue of $282.80 million for the quarter, compared to analysts' expectations of $280.12 million. During the same quarter in the prior year, the firm earned $0.64 earnings per share. Synaptics's revenue was up 14.3% compared to the same quarter last year. As a group, sell-side analysts forecast that Synaptics will post 0.96 EPS for the current year.

Synaptics announced that its Board of Directors has initiated a stock repurchase plan on Thursday, August 7th that authorizes the company to buyback $150.00 million in outstanding shares. This buyback authorization authorizes the software maker to reacquire up to 6.5% of its shares through open market purchases. Shares buyback plans are often a sign that the company's management believes its shares are undervalued.

Institutional Trading of Synaptics

Several hedge funds and other institutional investors have recently bought and sold shares of SYNA. Migdal Insurance & Financial Holdings Ltd. bought a new stake in Synaptics during the 1st quarter valued at $25,000. Parallel Advisors LLC boosted its position in shares of Synaptics by 151.1% in the 1st quarter. Parallel Advisors LLC now owns 447 shares of the software maker's stock worth $28,000 after purchasing an additional 269 shares in the last quarter. Quarry LP boosted its position in shares of Synaptics by 220.0% in the 1st quarter. Quarry LP now owns 528 shares of the software maker's stock worth $34,000 after purchasing an additional 363 shares in the last quarter. Banque Cantonale Vaudoise acquired a new stake in shares of Synaptics in the 1st quarter worth $35,000. Finally, Menard Financial Group LLC acquired a new stake in shares of Synaptics in the 4th quarter worth $37,000. Institutional investors own 99.43% of the company's stock.

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.