Synaptics (NASDAQ:SYNA) Upgraded to "Hold" 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 note issued to investors on Monday,Zacks.com reports.

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

Synaptics Price Performance

Shares of SYNA stock traded down $2.53 during trading hours on Monday, hitting $71.82. 972,844 shares of the company's stock were exchanged, compared to its average volume of 349,829. The company has a quick ratio of 2.26, a current ratio of 2.78 and a debt-to-equity ratio of 0.60. The firm has a market cap of $2.78 billion, a P/E ratio of -59.35 and a beta of 1.63. The firm has a 50 day moving average of $67.72 and a two-hundred day moving average of $63.00. Synaptics has a fifty-two week low of $41.80 and a fifty-two week high of $89.81.

Synaptics (NASDAQ:SYNA - Get Free Report) last announced its earnings results 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. The business 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%.The business's quarterly revenue was up 14.3% on a year-over-year basis. During the same period in the prior year, the company posted $0.64 EPS. Synaptics has set its Q1 2026 guidance at 1.490-1.690 EPS. Sell-side analysts forecast that Synaptics will post 0.96 EPS for the current year.

Synaptics announced that its board has authorized a share buyback program on Thursday, August 7th that permits the company to buyback $150.00 million in shares. This buyback authorization permits the software maker to purchase up to 6.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On Synaptics

A number of large investors have recently added to or reduced their stakes in the stock. Johnson Investment Counsel Inc. lifted its stake in shares of Synaptics by 6.1% during the 2nd quarter. Johnson Investment Counsel Inc. now owns 3,601 shares of the software maker's stock valued at $233,000 after buying an additional 206 shares in the last quarter. California State Teachers Retirement System grew its stake in Synaptics by 0.6% in the 2nd quarter. California State Teachers Retirement System now owns 36,853 shares of the software maker's stock worth $2,389,000 after acquiring an additional 209 shares in the last quarter. Nisa Investment Advisors LLC boosted its stake in shares of Synaptics by 50.3% during the second quarter. Nisa Investment Advisors LLC now owns 708 shares of the software maker's stock valued at $46,000 after purchasing an additional 237 shares in the last quarter. PNC Financial Services Group Inc. lifted its position in Synaptics by 32.5% during the first quarter. PNC Financial Services Group Inc. now owns 1,016 shares of the software maker's stock valued at $65,000 after acquiring an additional 249 shares during the last quarter. Finally, Parallel Advisors LLC lifted its position in Synaptics by 151.1% during the first quarter. Parallel Advisors LLC now owns 447 shares of the software maker's stock valued at $28,000 after acquiring an additional 269 shares during the last quarter. Institutional investors own 99.43% of the company's stock.

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.