Synthomer (LON:SYNT) Stock Price Down 20.1% - Time to Sell?

Key Points

• Synthomer plc's shares fell sharply by 20.1% during mid-day trading, reaching a low of GBX 62 ($0.82) and resulting in an unusual trading volume increase of 730% compared to its average.
• Analysts have downgraded their price targets for Synthomer, with Deutsche Bank lowering their estimate from GBX 140 ($1.86) to GBX 115 ($1.53), while Jefferies maintains a target of GBX 100 ($1.33).
• Insider trading activity includes purchases by insiders, with notable acquisitions of 20,000 shares at GBX 64 and 19,920 shares at GBX 99, indicating confidence from company insiders despite the stock's performance.

Shares of Synthomer plc (LON:SYNT - Get Free Report) dropped 20.1% on Tuesday . The stock traded as low as GBX 62 ($0.83) and last traded at GBX 63 ($0.85). Approximately 6,089,601 shares were traded during mid-day trading, an increase of 730% from the average daily volume of 733,974 shares. The stock had previously closed at GBX 78.80 ($1.06).

Analysts Set New Price Targets

A number of research firms recently commented on SYNT. Deutsche Bank Aktiengesellschaft decreased their target price on shares of Synthomer from GBX 140 ($1.88) to GBX 115 ($1.55) and set a "hold" rating for the company in a research report on Wednesday, July 30th. Berenberg Bank lowered their price objective on Synthomer from GBX 120 ($1.61) to GBX 80 ($1.08) and set a "hold" rating for the company in a research report on Wednesday. Finally, Jefferies Financial Group restated a "hold" rating and set a GBX 100 ($1.34) target price on shares of Synthomer in a research note on Tuesday.

Synthomer Price Performance

The firm has a market cap of £102.60 million, a PE ratio of -1.25, a price-to-earnings-growth ratio of -0.17 and a beta of 1.79. The company has a quick ratio of 0.97, a current ratio of 1.90 and a debt-to-equity ratio of 78.27. The stock has a 50 day moving average price of GBX 99.81 and a two-hundred day moving average price of GBX 109.72.

Synthomer (LON:SYNT - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported GBX (5.40) (($0.07)) earnings per share for the quarter. Synthomer had a negative return on equity of 7.52% and a negative net margin of 4.40%. As a group, equities analysts expect that Synthomer plc will post 12.962963 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Jonathan Silver bought 59,229 shares of the firm's stock in a transaction that occurred on Wednesday, August 6th. The stock was purchased at an average price of GBX 65 ($0.87) per share, with a total value of £38,498.85 ($51,773.60). Also, insider Lily Liu bought 20,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 5th. The shares were purchased at an average cost of GBX 64 ($0.86) per share, with a total value of £12,800 ($17,213.56). Insiders bought 99,149 shares of company stock valued at $7,101,965 over the last quarter. 28.00% of the stock is currently owned by company insiders.

Synthomer Company Profile

Synthomer plc is a leading supplier of high-performance, highly specialised polymers and ingredients that play vital roles in key sectors such as coatings, construction, adhesives, and health and protection – growing markets for customers who serve billions of end users worldwide. Headquartered in London, UK and listed on the LSE since 1971, we employ c.3,900 employees across our five innovation centres of excellence and 29 manufacturing sites across Europe, North America, Middle East and Asia.