Synthomer (LON:SYNT) Shares Down 20.1% - Here's What Happened

Key Points

• Synthomer's stock price fell by 20.1% on Tuesday, trading as low as GBX 62 ($0.82) before recovering slightly to GBX 63 ($0.84).
• Analysts have lowered their price targets, with Deutsche Bank dropping it from GBX 140 ($1.86) to GBX 115 ($1.53) and Jefferies setting a target of GBX 100 ($1.33).
• Despite the downturn, insiders have been buying shares, with Lily Liu purchasing 20,000 shares at GBX 64 ($0.85) each on August 5th.

Synthomer plc (LON:SYNT - Get Free Report) dropped 20.1% during mid-day trading 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 traded hands during 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).

Wall Street Analysts Forecast Growth

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

Synthomer Price Performance

The firm has a market cap of £102.60 million, a price-to-earnings ratio of -1.25, a P/E/G ratio of -0.17 and a beta of 1.79. The company has a current ratio of 1.90, a quick ratio of 0.97 and a debt-to-equity ratio of 78.27. The stock's fifty day moving average price is GBX 99.81 and its 200-day moving average price is GBX 109.72.

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

Insider Activity

In other Synthomer news, insider Janet E. Ashdown acquired 19,920 shares of the stock in a transaction dated Thursday, July 3rd. The stock was acquired at an average price of GBX 99 ($1.33) per share, with a total value of £19,720.80 ($26,520.71). Also, insider Jonathan Silver acquired 59,229 shares of the stock in a transaction dated Wednesday, August 6th. The shares were bought at an average cost of GBX 65 ($0.87) per share, with a total value of £38,498.85 ($51,773.60). In the last three months, insiders have purchased 99,149 shares of company stock valued at $7,101,965. Company insiders own 28.00% of the company's stock.

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.