Synovus Financial (NYSE:SNV) Shares Gap Down - Should You Sell?

Key Points

• Synovus Financial's shares gapped down significantly, opening at $49.29 after closing at $56.72, and currently trade at $48.81 with high trading volume.
• Several analysts have adjusted their price targets for Synovus Financial, with an average rating of "Moderate Buy" and a consensus price target of $60.44.
• The company reported $1.48 EPS for the last quarter, exceeding expectations, and announced a quarterly dividend of $0.39.
• Institutional ownership is high, with about 83.85% of the stock held by institutional investors and hedge funds, indicating strong investor confidence.

Synovus Financial Corp. (NYSE:SNV - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $56.72, but opened at $49.29. Synovus Financial shares last traded at $48.81, with a volume of 1,945,655 shares.

Analyst Ratings Changes

Several research firms have recently commented on SNV. Morgan Stanley lifted their price target on Synovus Financial from $58.00 to $61.00 and gave the stock an "equal weight" rating in a report on Friday, July 18th. Wells Fargo & Company reissued an "equal weight" rating and set a $58.00 price objective (down from $62.00) on shares of Synovus Financial in a research report on Friday. Jefferies Financial Group began coverage on Synovus Financial in a research report on Wednesday, May 21st. They set a "hold" rating and a $55.00 price objective for the company. Truist Financial raised their price objective on Synovus Financial from $56.00 to $60.00 and gave the stock a "buy" rating in a research report on Friday, July 11th. Finally, JPMorgan Chase & Co. raised their price objective on Synovus Financial from $50.00 to $60.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 1st. Seven investment analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company. According to MarketBeat.com, Synovus Financial presently has an average rating of "Moderate Buy" and a consensus target price of $60.44.

Synovus Financial Stock Performance

The company has a market capitalization of $6.90 billion, a price-to-earnings ratio of 9.51, a P/E/G ratio of 0.99 and a beta of 1.19. 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 firm has a 50-day simple moving average of $50.96 and a two-hundred day simple moving average of $49.39.

Synovus Financial (NYSE:SNV - Get Free Report) last released its earnings results on Wednesday, July 16th. The bank reported $1.48 earnings per share for the quarter, beating the consensus estimate of $1.25 by $0.23. The company had revenue of $592.08 million during the quarter, compared to the consensus estimate of $584.89 million. Synovus Financial had a return on equity of 16.20% and a net margin of 21.52%. During the same period in the previous year, the company posted $1.16 EPS. On average, sell-side analysts anticipate that Synovus Financial Corp. will post 4.89 EPS for the current fiscal year.

Synovus Financial Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, July 1st. Shareholders of record on Thursday, June 19th were given a $0.39 dividend. This represents a $1.56 annualized dividend and a yield of 3.14%. The ex-dividend date was Wednesday, June 18th. Synovus Financial's dividend payout ratio is currently 29.94%.

Hedge Funds Weigh In On Synovus Financial

A number of institutional investors and hedge funds have recently made changes to their positions in SNV. AQR Capital Management LLC grew its position in shares of Synovus Financial by 168.2% during the first quarter. AQR Capital Management LLC now owns 2,857,222 shares of the bank's stock worth $130,546,000 after buying an additional 1,791,973 shares in the last quarter. Norges Bank acquired a new position in shares of Synovus Financial during the fourth quarter worth about $77,209,000. Invesco Ltd. grew its position in shares of Synovus Financial by 201.0% during the first quarter. Invesco Ltd. now owns 820,782 shares of the bank's stock worth $38,363,000 after buying an additional 548,092 shares in the last quarter. FMR LLC grew its position in shares of Synovus Financial by 3.6% during the fourth quarter. FMR LLC now owns 12,041,625 shares of the bank's stock worth $616,892,000 after buying an additional 415,201 shares in the last quarter. Finally, Prudential Financial Inc. grew its position in shares of Synovus Financial by 349.4% during the fourth quarter. Prudential Financial Inc. now owns 529,147 shares of the bank's stock worth $27,108,000 after buying an additional 411,411 shares in 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.

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