TD SYNNEX (NYSE:SNX) Sets New 1-Year High - Still a Buy?

Key Points

• TD SYNNEX shares hit a new 52-week high, trading as high as $291.79 after closing previously at $283.26. The stock was up about 3.8% on the session.
• Analyst sentiment remains broadly positive, with several firms raising price targets, including RBC to $315 and UBS to $310. The stock currently has a Moderate Buy consensus and an average target price of $249.80.
• The company delivered a strong quarter, reporting $4.73 EPS versus $3.24 expected and revenue of $17.16 billion, up 18.1% year over year. TD SYNNEX also pays a quarterly dividend of $0.48, and institutional ownership remains high at 84%.

TD SYNNEX Corporation (NYSE:SNX - Get Free Report)'s stock price reached a new 52-week high during trading on Tuesday . The company traded as high as $291.79 and last traded at $292.2770, with a volume of 233513 shares. The stock had previously closed at $283.26.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on SNX. Royal Bank Of Canada boosted their price target on TD SYNNEX from $250.00 to $315.00 and gave the company an "outperform" rating in a report on Wednesday, June 10th. The Goldman Sachs Group raised their price objective on TD SYNNEX from $270.00 to $300.00 and gave the stock a "buy" rating in a research note on Thursday, June 11th. Barclays boosted their target price on shares of TD SYNNEX from $166.00 to $237.00 and gave the company an "equal weight" rating in a research note on Friday, May 29th. UBS Group raised their price target on shares of TD SYNNEX from $265.00 to $310.00 and gave the stock a "buy" rating in a research report on Tuesday, June 9th. Finally, Weiss Ratings downgraded shares of TD SYNNEX from a "buy (b+)" rating to a "buy (b)" rating in a research report on Wednesday, June 17th. Nine analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $249.80.

TD SYNNEX Stock Up 3.8%

The firm's 50 day simple moving average is $243.77 and its 200 day simple moving average is $188.92. The company has a market cap of $23.64 billion, a price-to-earnings ratio of 24.44, a price-to-earnings-growth ratio of 1.17 and a beta of 1.43. The company has a quick ratio of 0.71, a current ratio of 1.22 and a debt-to-equity ratio of 0.41.

TD SYNNEX (NYSE:SNX - Get Free Report) last issued its quarterly earnings data on Tuesday, March 31st. The business services provider reported $4.73 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.24 by $1.49. TD SYNNEX had a return on equity of 14.03% and a net margin of 1.52%.The business had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $15.59 billion. During the same period in the previous year, the firm posted $2.80 earnings per share. The business's revenue was up 18.1% on a year-over-year basis. Sell-side analysts anticipate that TD SYNNEX Corporation will post 15.88 EPS for the current fiscal year.

TD SYNNEX Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 29th. Stockholders of record on Wednesday, April 15th were paid a $0.48 dividend. The ex-dividend date of this dividend was Wednesday, April 15th. This represents a $1.92 annualized dividend and a dividend yield of 0.7%. TD SYNNEX's dividend payout ratio is presently 15.96%.

Insider Activity at TD SYNNEX

In related news, Director Richard T. Hume sold 5,000 shares of the company's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $280.38, for a total value of $1,401,900.00. Following the completion of the sale, the director owned 23,537 shares of the company's stock, valued at $6,599,304.06. This represents a 17.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David Gregory Jordan sold 3,225 shares of the company's stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $189.46, for a total transaction of $611,008.50. Following the completion of the sale, the chief financial officer directly owned 14,035 shares of the company's stock, valued at approximately $2,659,071.10. This represents a 18.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 21,250 shares of company stock worth $4,935,282 over the last ninety days. 0.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of SNX. Pacer Advisors Inc. grew its holdings in TD SYNNEX by 4,021.1% during the first quarter. Pacer Advisors Inc. now owns 366,652 shares of the business services provider's stock worth $61,858,000 after acquiring an additional 357,755 shares during the period. Parallel Advisors LLC boosted its position in shares of TD SYNNEX by 11.1% during the 1st quarter. Parallel Advisors LLC now owns 1,692 shares of the business services provider's stock valued at $285,000 after purchasing an additional 169 shares in the last quarter. NewEdge Advisors LLC raised its holdings in shares of TD SYNNEX by 1.2% in the 1st quarter. NewEdge Advisors LLC now owns 347,399 shares of the business services provider's stock worth $58,610,000 after purchasing an additional 4,108 shares in the last quarter. Essential Partners LLC lifted its stake in TD SYNNEX by 644.4% during the first quarter. Essential Partners LLC now owns 201 shares of the business services provider's stock valued at $34,000 after purchasing an additional 174 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its holdings in TD SYNNEX by 58.1% during the first quarter. EverSource Wealth Advisors LLC now owns 1,456 shares of the business services provider's stock worth $246,000 after buying an additional 535 shares in the last quarter. Institutional investors own 84.00% of the company's stock.

TD SYNNEX Company Profile

TD SYNNEX NYSE: SNX is a leading global distributor and solutions aggregator for the information technology industry. Formed in September 2021 through the merger of Tech Data and SYNNEX Corporation, the company provides a comprehensive range of products, services and solutions that span hardware, software, cloud, mobility, security and data center technologies. TD SYNNEX partners with vendors, resellers and system integrators to design, deploy and support IT infrastructures across diverse market segments, including commercial enterprises, public sector organizations and retail operations.

The company's core business activities include the distribution of technology products from manufacturers such as servers, storage, networking equipment and peripherals, as well as the resale and provisioning of software licenses and cloud-based solutions.

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