Synaptics (NASDAQ:SYNA) Upgraded at Zacks Research

Key Points

• Synaptics has been upgraded from a "strong sell" to a "hold" rating by analysts at Zacks Research, indicating a shift in market sentiment towards the company.
• Institutional investors currently own 99.43% of Synaptics' stock, with multiple hedge funds recently increasing their stakes.
• The company has initiated a $150 million stock repurchase plan, suggesting that its board believes the stock is undervalued.

Zacks Research upgraded shares of Synaptics (NASDAQ:SYNA - Free Report) from a strong sell rating to a hold rating in a research report report published on Monday,Zacks.com reports.

A number of other equities analysts have also commented on the company. Wall Street Zen lowered Synaptics from a "buy" rating to a "hold" rating in a report on Friday, August 22nd. Barclays initiated coverage on Synaptics in a research note on Monday, August 18th. They set an "overweight" rating and a $78.00 price objective for the company. Finally, Deutsche Bank Aktiengesellschaft initiated coverage on Synaptics in a research note on Thursday, September 11th. They set a "buy" rating and a $85.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Synaptics currently has a consensus rating of "Moderate Buy" and an average price target of $90.43.

Synaptics Stock Down 3.4%

Shares of Synaptics stock traded down $2.53 on Monday, hitting $71.82. The company had a trading volume of 972,844 shares, compared to its average volume of 349,829. The stock has a market capitalization of $2.78 billion, a price-to-earnings ratio of -59.35 and a beta of 1.63. Synaptics has a 1 year low of $41.80 and a 1 year high of $89.81. The stock has a 50 day moving average of $67.72 and a 200-day moving average of $63.00. The company has a debt-to-equity ratio of 0.60, a quick ratio of 2.26 and a current ratio of 2.78.

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 analysts' consensus estimates of $1.00 by $0.01. The company had revenue of $282.80 million during the quarter, compared to the consensus estimate of $280.12 million. Synaptics had a positive return on equity of 4.32% and a negative net margin of 4.45%.Synaptics's revenue was up 14.3% on a year-over-year basis. During the same period last year, the business posted $0.64 earnings per share. Synaptics has set its Q1 2026 guidance at 1.490-1.690 EPS. As a group, sell-side analysts forecast that Synaptics will post 0.96 earnings per share for the current year.

Synaptics announced that its board has approved a stock repurchase program on Thursday, August 7th that authorizes the company to repurchase $150.00 million in shares. This repurchase authorization authorizes the software maker to repurchase up to 6.5% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Johnson Investment Counsel Inc. bought a new position in Synaptics in the 1st quarter worth $216,000. SG Americas Securities LLC bought a new stake in Synaptics in the first quarter worth about $320,000. Nuveen Asset Management LLC lifted its stake in Synaptics by 4.3% in the fourth quarter. Nuveen Asset Management LLC now owns 115,441 shares of the software maker's stock worth $8,810,000 after purchasing an additional 4,760 shares during the last quarter. Glenview Trust co raised its stake in shares of Synaptics by 13.6% during the first quarter. Glenview Trust co now owns 31,455 shares of the software maker's stock valued at $2,004,000 after acquiring an additional 3,775 shares in the last quarter. Finally, Federated Hermes Inc. raised its stake in shares of Synaptics by 7.7% during the first quarter. Federated Hermes Inc. now owns 21,413 shares of the software maker's stock valued at $1,364,000 after acquiring an additional 1,527 shares in the last quarter. 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.