Synaptics (NASDAQ:SYNA) Trading Down 8.7% – Should You Sell?

Synaptics Incorporated (NASDAQ:SYNA) traded down 8.7% during trading on Wednesday . The stock traded as low as $89.91 and last traded at $88.8340. 371,247 shares changed hands during mid-day trading, a decline of 57% from the average daily volume of 865,932 shares. The stock had previously closed at $97.32.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Northland Securities downgraded shares of Synaptics from a “strong-buy” rating to a “hold” rating in a research note on Friday, June 26th. Needham & Company LLC downgraded shares of Synaptics from a “buy” rating to a “hold” rating in a research note on Friday, June 26th. Craig Hallum set a $105.00 target price on shares of Synaptics in a report on Friday, August 7th. Rosenblatt Securities decreased their price target on shares of Synaptics from $160.00 to $115.00 and set a “neutral” rating for the company in a research report on Friday, August 7th. Finally, Mizuho increased their price target on Synaptics from $128.00 to $170.00 and gave the company an “outperform” rating in a report on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Synaptics presently has an average rating of “Hold” and a consensus target price of $123.91.

Synaptics Stock Down 8.2%

The stock has a market capitalization of $3.49 billion, a price-to-earnings ratio of -7.02 and a beta of 1.94. The firm has a 50-day moving average of $106.21 and a 200 day moving average of $104.69. The company has a current ratio of 1.12, a quick ratio of 0.90 and a debt-to-equity ratio of 0.43.

Synaptics (NASDAQ:SYNA) last issued its quarterly earnings data on Thursday, August 6th. The software maker reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.21 by $0.02. The company had revenue of $308.00 million during the quarter, compared to the consensus estimate of $305.32 million. Synaptics had a negative net margin of 41.00% and a positive return on equity of 4.37%. Synaptics’s revenue for the quarter was up 8.9% on a year-over-year basis. During the same quarter last year, the company earned $1.01 earnings per share. On average, sell-side analysts anticipate that Synaptics Incorporated will post 1.98 earnings per share for the current year.

Insider Activity

In other Synaptics news, insider Vikram Gupta sold 4,277 shares of the company’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $103.65, for a total value of $443,311.05. Following the completion of the transaction, the insider directly owned 103,468 shares of the company’s stock, valued at $10,724,458.20. This represents a 3.97% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 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 the firm’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $103.68, for a total value of $45,308.16. Following the sale, the insider owned 14,683 shares of the company’s stock, valued at approximately $1,522,333.44. This trade represents a 2.89% decrease in their position. The SEC filing for this sale provides additional information. 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. Over the last three months, insiders sold 15,867 shares of company stock worth $1,624,996. 0.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SYNA. ABS Investment Management LLC bought a new stake in shares of Synaptics in the 2nd quarter worth about $310,575,000. CoreCap Advisors LLC bought a new position in shares of Synaptics during the second quarter worth about $25,000. Allworth Financial LP bought a new position in shares of Synaptics during the second quarter worth about $33,000. Global Retirement Partners LLC acquired a new position in Synaptics in the second quarter worth about $61,000. Finally, State of Wyoming acquired a new position in Synaptics in the second quarter worth about $65,000. 99.43% of the stock is owned by institutional investors and hedge funds.

About Synaptics

Synaptics Incorporated (NASDAQ: SYNA) is a fabless semiconductor company that develops technologies for human-machine interaction, connectivity and edge computing. Its solutions are used in consumer electronics, automotive systems, enterprise equipment and other connected devices.

The company’s products include touchpads, touchscreens, fingerprint sensors, display and video interface technologies, and related human-interface solutions. Synaptics also develops wireless connectivity products, including technologies supporting Wi-Fi, Bluetooth and other connected-device applications, as well as semiconductor platforms designed to enable edge artificial intelligence and the Internet of Things.

Founded in 1986 and headquartered in Santa Clara, California, Synaptics serves customers and original equipment manufacturers globally.