Synovus Financial (NYSE:SNV) Issues Quarterly Earnings Results

Key Points

• Synovus Financial reported a quarterly earnings per share (EPS) of $1.46, exceeding the consensus estimate of $1.35 by $0.11.
• Despite the strong earnings performance, shares of Synovus Financial fell by 1.9% to $46.91 following the announcement.
• The bank declared a quarterly dividend of $0.39 per share, reflecting a 3.3% dividend yield with a payout ratio of approximately 30%.

Synovus Financial (NYSE:SNV - Get Free Report) released its quarterly earnings results on Wednesday. The bank reported $1.46 EPS for the quarter, topping the consensus estimate of $1.36 by $0.10, Zacks reports. The company had revenue of $612.79 million for the quarter, compared to analyst estimates of $604.59 million. Synovus Financial had a return on equity of 16.20% and a net margin of 21.52%.The firm's revenue was up 9.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.23 earnings per share.

Synovus Financial Stock Down 1.9%

SNV opened at $46.91 on Thursday. The business's fifty day moving average is $49.70 and its two-hundred day moving average is $48.43. The company has a debt-to-equity ratio of 0.77, a quick ratio of 0.92 and a current ratio of 0.92. The company has a market cap of $6.51 billion, a price-to-earnings ratio of 9.00, a PEG ratio of 0.86 and a beta of 1.21. Synovus Financial has a one year low of $35.94 and a one year high of $61.06.

Synovus Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 1st. Shareholders of record on Thursday, September 18th were given a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date was Thursday, September 18th. Synovus Financial's payout ratio is presently 29.94%.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the company. Truist Financial dropped their target price on Synovus Financial from $58.00 to $56.00 and set a "buy" rating on the stock in a report on Wednesday, September 24th. DA Davidson boosted their target price on Synovus Financial from $60.00 to $63.00 and gave the company a "buy" rating in a report on Friday, July 18th. Stephens dropped their target price on Synovus Financial from $60.00 to $54.00 and set an "equal weight" rating on the stock in a report on Tuesday, July 29th. Morgan Stanley boosted their target price on Synovus Financial from $58.00 to $61.00 and gave the company an "equal weight" rating in a report on Friday, July 18th. Finally, Wells Fargo & Company reissued an "equal weight" rating and issued a $58.00 target price (down previously from $62.00) on shares of Synovus Financial in a report on Friday, July 25th. Nine research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $58.50.

Insider Transactions at Synovus Financial

In other news, CFO Andrew J. Jr. Gregory bought 2,000 shares of the firm's stock in a transaction on Tuesday, July 29th. The shares were bought at an average cost of $48.90 per share, for a total transaction of $97,800.00. Following the completion of the transaction, the chief financial officer owned 58,220 shares in the company, valued at $2,846,958. This trade represents a 3.56% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Diana M. Murphy purchased 1,000 shares of the business's stock in a transaction dated Tuesday, July 29th. The stock was bought at an average cost of $48.80 per share, with a total value of $48,800.00. Following the completion of the acquisition, the director owned 40,171 shares of the company's stock, valued at approximately $1,960,344.80. The trade was a 2.55% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have purchased a total of 8,040 shares of company stock valued at $392,916 in the last three months. 1.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On Synovus Financial

A number of institutional investors have recently made changes to their positions in the stock. AQR Capital Management LLC raised its holdings in shares of Synovus Financial by 7.1% in the second quarter. AQR Capital Management LLC now owns 3,059,102 shares of the bank's stock worth $158,309,000 after acquiring an additional 201,880 shares during the last quarter. Invesco Ltd. raised its holdings in shares of Synovus Financial by 6.0% in the second quarter. Invesco Ltd. now owns 870,081 shares of the bank's stock worth $45,027,000 after acquiring an additional 49,299 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Synovus Financial by 78.2% in the first quarter. Goldman Sachs Group Inc. now owns 523,479 shares of the bank's stock worth $24,467,000 after acquiring an additional 229,730 shares during the last quarter. Sei Investments Co. raised its holdings in shares of Synovus Financial by 168.6% in the second quarter. Sei Investments Co. now owns 201,883 shares of the bank's stock worth $10,447,000 after acquiring an additional 126,724 shares during the last quarter. Finally, Quantinno Capital Management LP increased its stake in Synovus Financial by 44.1% in the second quarter. Quantinno Capital Management LP now owns 175,530 shares of the bank's stock valued at $9,084,000 after purchasing an additional 53,748 shares during the last quarter. 83.85% of the stock is owned by institutional investors and hedge funds.

About Synovus Financial

Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides commercial and consumer banking products and services. It operates through four segments: Community Banking, Wholesale Banking, Consumer Banking, and Financial Management Services. The company's commercial banking services include treasury and asset management, capital market, and institutional trust services, as well as commercial, financial, and real estate lending services.