Synnex Corporation (NYSE:SNX) Earns “Buy” Rating from Stifel Nicolaus
Stifel Nicolaus reaffirmed their buy rating on shares of Synnex Corporation (NYSE:SNX) in a research note issued to investors on Thursday. The firm currently has a $132.00 target price on the business services provider’s stock.
SNX has been the topic of a number of other research reports. Zacks Investment Research downgraded Synnex Corporation from a buy rating to a hold rating in a report on Tuesday, May 30th. BidaskClub downgraded Synnex Corporation from a buy rating to a hold rating in a report on Tuesday, July 25th. Citigroup Inc. reiterated a neutral rating and set a $133.00 price target (up previously from $122.00) on shares of Synnex Corporation in a report on Sunday, June 25th. Finally, Raymond James Financial, Inc. upgraded Synnex Corporation from a market perform rating to a strong-buy rating and set a $122.00 price target on the stock in a report on Friday, May 19th. One analyst has rated the stock with a sell rating, four have assigned a hold rating, two have given a buy rating and one has issued a strong buy rating to the company. The stock presently has a consensus rating of Hold and a consensus target price of $126.67.
Synnex Corporation (SNX) opened at 118.24 on Thursday. The company’s 50-day moving average price is $120.39 and its 200 day moving average price is $115.66. The stock has a market capitalization of $4.72 billion, a P/E ratio of 16.97 and a beta of 1.04. Synnex Corporation has a 52-week low of $99.75 and a 52-week high of $131.35.
Synnex Corporation (NYSE:SNX) last issued its quarterly earnings results on Thursday, June 22nd. The business services provider reported $2.08 earnings per share for the quarter, beating analysts’ consensus estimates of $1.79 by $0.29. Synnex Corporation had a return on equity of 16.29% and a net margin of 1.86%. The business had revenue of $3.94 billion for the quarter, compared to the consensus estimate of $3.79 billion. During the same quarter in the previous year, the company posted $1.37 earnings per share. Synnex Corporation’s revenue for the quarter was up 16.5% compared to the same quarter last year. On average, equities research analysts anticipate that Synnex Corporation will post $8.41 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Friday, July 28th. Investors of record on Friday, July 14th were given a dividend of $0.25 per share. The ex-dividend date was Wednesday, July 12th. This represents a $1.00 dividend on an annualized basis and a yield of 0.85%. Synnex Corporation’s payout ratio is 14.35%.
Synnex Corporation announced that its board has initiated a share repurchase plan on Thursday, June 22nd that permits the company to buyback $300.00 million in shares. This buyback authorization permits the business services provider to reacquire up to 6.2% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s management believes its shares are undervalued.
In related news, insider Peter Larocque sold 4,265 shares of Synnex Corporation stock in a transaction on Wednesday, July 5th. The stock was sold at an average price of $119.08, for a total transaction of $507,876.20. Following the completion of the sale, the insider now owns 14,958 shares of the company’s stock, valued at $1,781,198.64. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, SVP Simon Leung sold 759 shares of Synnex Corporation stock in a transaction on Tuesday, August 1st. The shares were sold at an average price of $119.77, for a total value of $90,905.43. Following the sale, the senior vice president now directly owns 25,053 shares of the company’s stock, valued at approximately $3,000,597.81. The disclosure for this sale can be found here. In the last three months, insiders have sold 27,028 shares of company stock valued at $3,206,318. Insiders own 3.20% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. boosted its stake in Synnex Corporation by 9,152.6% in the first quarter. BlackRock Inc. now owns 3,655,501 shares of the business services provider’s stock worth $409,198,000 after buying an additional 3,615,993 shares during the last quarter. Kennedy Capital Management Inc. boosted its stake in Synnex Corporation by 74.4% in the first quarter. Kennedy Capital Management Inc. now owns 286,482 shares of the business services provider’s stock worth $32,069,000 after buying an additional 122,187 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in Synnex Corporation by 9.9% in the first quarter. Goldman Sachs Group Inc. now owns 1,161,347 shares of the business services provider’s stock worth $130,001,000 after buying an additional 104,932 shares during the last quarter. Vanguard Group Inc. boosted its stake in Synnex Corporation by 3.1% in the first quarter. Vanguard Group Inc. now owns 3,150,496 shares of the business services provider’s stock worth $352,667,000 after buying an additional 95,341 shares during the last quarter. Finally, IronBridge Capital Management LP purchased a new stake in Synnex Corporation during the first quarter worth about $5,734,000. 70.97% of the stock is owned by hedge funds and other institutional investors.
About Synnex Corporation
Synnex Corporation is a business process services company. The Company provides a range of distribution, logistics and integration services for the technology industry and providing outsourced services focused on customer engagement strategy. The Company operates in two segments: Technology Solutions and Concentrix.
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