Synaptics (NASDAQ:SYNA) Shares Gap Up on Analyst Upgrade

Synaptics Incorporated (NASDAQ:SYNA) shares gapped up prior to trading on Friday after Rosenblatt Securities raised their price target on the stock from $115.00 to $123.00. The stock had previously closed at $106.15, but opened at $121.70. Rosenblatt Securities currently has a neutral rating on the stock. Synaptics shares last traded at $121.1280, with a volume of 2,441,505 shares trading hands.

A number of other brokerages have also issued reports on SYNA. Wells Fargo & Company set a $123.00 target price on Synaptics in a research report on Friday. Barclays reissued an “equal weight” rating and set a $135.00 price target (up from $110.00) on shares of Synaptics in a research report on Friday, June 26th. Zacks Research upgraded shares of Synaptics from a “hold” rating to a “strong-buy” rating in a research note on Monday, August 17th. Mizuho upped their price target on shares of Synaptics from $128.00 to $170.00 and gave the company an “outperform” rating in a report on Wednesday, July 1st. Finally, Needham & Company LLC downgraded shares of Synaptics from a “buy” rating to a “hold” rating in a research note on Friday, June 26th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Synaptics has an average rating of “Hold” and a consensus price target of $123.09.

Insider Transactions at Synaptics

In related news, insider Vikram Gupta sold 4,277 shares of the firm’s stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $103.65, for a total transaction of $443,311.05. Following the transaction, the insider directly owned 103,468 shares in the company, valued at $10,724,458.20. This trade represents a 3.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Esther Song sold 437 shares of Synaptics stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $103.68, for a total transaction of $45,308.16. Following the completion of the transaction, the insider directly owned 14,683 shares of the company’s stock, valued at approximately $1,522,333.44. This represents a 2.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 15,951 shares of company stock worth $1,612,862. 0.70% of the stock is currently owned by corporate insiders.

Trending Headlines about Synaptics

Here are the key news stories impacting Synaptics this week:

• Positive Sentiment: The all-cash offer provides Synaptics investors with greater deal certainty and eliminates the stock-market risk associated with receiving ON Semiconductor shares. The $123 consideration is also above Synaptics’ supplied $106.15 opening price. ON Semiconductor to Buy Synaptics for Cash, Not Stock, in Downsized Deal
• Positive Sentiment: The amended agreement helped remove uncertainty around the transaction and prompted a strong after-hours and premarket response in SYNA. Reports describe the revised deal as a renegotiated, downsized acquisition while retaining the $123-per-share cash price. On Semi Is Getting Synaptics at a Knock Down Price and Both Stocks Are Soaring
• Positive Sentiment: The transaction is also viewed favorably for ON Semiconductor, with Needham maintaining a Buy rating and stating that the all-cash Synaptics deal could increase ON’s earnings per share by about 11.6%. That supports the strategic rationale for completing the acquisition. ON Semiconductor Buy Rating Reaffirmed as All-Cash Synaptics Deal Boosts EPS
• Neutral Sentiment: Because the stock is trading near the $123 offer value, further upside may depend primarily on deal completion rather than Synaptics’ standalone operating performance. Investors should monitor shareholder, regulatory and closing risks. Why Are ON Semiconductor and Synaptics Stocks Surging in Premarket?

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Tidal Investments LLC acquired a new stake in Synaptics during the second quarter worth about $711,000. Engineers Gate Manager LP boosted its stake in Synaptics by 65.8% in the second quarter. Engineers Gate Manager LP now owns 24,078 shares of the software maker’s stock valued at $2,991,000 after acquiring an additional 9,553 shares during the period. Corient Private Wealth LP acquired a new position in Synaptics in the second quarter valued at approximately $239,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Synaptics during the second quarter valued at approximately $593,000. Finally, Syon Capital LLC bought a new position in shares of Synaptics during the second quarter valued at approximately $231,000. 99.43% of the stock is owned by institutional investors and hedge funds.

Synaptics Price Performance

The company has a current ratio of 1.12, a quick ratio of 0.90 and a debt-to-equity ratio of 0.43. The business has a 50-day moving average price of $100.78 and a two-hundred day moving average price of $106.47. The firm has a market capitalization of $4.80 billion, a price-to-earnings ratio of -9.55 and a beta of 1.96.

Synaptics (NASDAQ:SYNA) last announced its earnings results on Thursday, August 6th. The software maker reported $1.23 earnings per share for the quarter, beating the consensus estimate of $1.21 by $0.02. Synaptics had a positive return on equity of 4.37% and a negative net margin of 41.00%.The firm had revenue of $308.00 million for the quarter, compared to the consensus estimate of $305.32 million. During the same quarter in the previous year, the business earned $1.01 EPS. The firm’s revenue for the quarter was up 8.9% on a year-over-year basis. As a group, research analysts forecast that Synaptics Incorporated will post 1.98 EPS for the current year.

About Synaptics

Synaptics Incorporated (NASDAQ: SYNA) is a fabless semiconductor company that develops technologies enabling people to interact with digital devices. Its products combine sensing, processing, connectivity and artificial intelligence capabilities for consumer electronics, automotive systems and Internet of Things applications.

The company’s portfolio includes touch and display controllers, touchpads, fingerprint sensors, audio and voice-processing solutions, wireless connectivity products, and video and vision processors.