Synthomer (LON:SYNT) Shares Down 18% - Here's Why

Key Points

• Synthomer plc's stock price fell sharply, down 18% to GBX 64.65 ($0.86), with trading volume significantly higher than average at approximately 5.5 million shares.
• Analysts revised their price targets, with Deutsche Bank lowering theirs from GBX 140 ($1.86) to GBX 115 ($1.53) while maintaining a "hold" rating.
• Insiders have been buying shares, with notable purchases occurring at an average price of GBX 64 ($0.85), indicating potential confidence in the company's future.

Shares of Synthomer plc (LON:SYNT - Get Free Report) traded down 18% on Tuesday . The company traded as low as GBX 62 ($0.83) and last traded at GBX 64.65 ($0.87). 5,529,990 shares were traded during mid-day trading, an increase of 657% from the average session volume of 730,243 shares. The stock had previously closed at GBX 78.80 ($1.06).

Analyst Ratings Changes

A number of research analysts recently weighed in on the stock. Jefferies Financial Group reissued a "hold" rating and issued a GBX 100 ($1.34) target price on shares of Synthomer in a report on Tuesday. Deutsche Bank Aktiengesellschaft dropped their price objective 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 note on Wednesday, July 30th. Finally, Berenberg Bank dropped their price objective on shares of Synthomer from GBX 120 ($1.61) to GBX 80 ($1.08) and set a "hold" rating for the company in a research note on Wednesday.

Synthomer Price Performance

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 firm's 50 day simple moving average is GBX 98.97 and its 200 day simple moving average is GBX 109.05. The company has a market capitalization 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.

Synthomer (LON:SYNT - Get Free Report) last released its 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, research analysts anticipate that Synthomer plc will post 12.962963 EPS for the current fiscal year.

Insider Transactions at Synthomer

In other Synthomer news, insider Janet E. Ashdown bought 19,920 shares of the firm's stock in a transaction dated Thursday, July 3rd. The stock was acquired at an average cost of GBX 99 ($1.33) per share, for a total transaction of £19,720.80 ($26,524.28). Also, insider Jonathan Silver bought 59,229 shares of the firm's stock in a transaction dated Wednesday, August 6th. The shares were acquired at an average price of GBX 65 ($0.87) per share, with a total value of £38,498.85 ($51,780.56). Over the last ninety days, insiders acquired 99,149 shares of company stock worth $7,101,965. 28.00% of the stock is currently owned by insiders.

About Synthomer

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.