Synaptics Inc (NASDAQ:SYNA) executive Vikram Gupta has sold a total of 259 shares of the company's common stock, according to a recent SEC filing. The shares were sold at a price of $90.0 each, amounting to a total transaction value of over $23,000.
The transaction occurred on June 20, 2024, and was executed pursuant to a 10b5-1 Trading Plan that was established on March 14, 2024. Following the sale, Gupta still holds 30,835 shares of Synaptics Inc. The details of the transaction indicate that the shares were disposed of in a direct ownership form.
Vikram Gupta serves as the Senior Vice President & General Manager, IoT/Processors and is also the Chief Product Officer at Synaptics. The company, headquartered in San Jose, California, is a leader in the semiconductor industry, specializing in human interface solutions that enable a richer interaction between humans and devices.
Investors often monitor insider transactions such as these for insights into the company's performance and the confidence level of senior executives in the firm's prospects. The sale of shares by Gupta represents a noteworthy event for stakeholders and potential investors of Synaptics Inc.
The filing was signed by NeeChu Mei, as attorney-in-fact, on June 20, the same day as the reported transaction.
In other recent news, Synaptics Incorporated has seen significant developments. The company recently announced the appointment of Ken Rizvi as Senior Vice President and Chief Financial Officer, effective from July 15, 2024. Rizvi's appointment is part of Synaptics' strategy to expand its presence in the Internet of Things (IoT) connectivity and processor solutions market. With over two decades of experience in the semiconductor industry, Rizvi is expected to oversee Synaptics' global finance operations.
In financial news, Synaptics reported mixed results for the third quarter of the fiscal year 2024. The company reported a revenue of $237.3 million, a year-over-year decrease of 27%. Despite this decline, Synaptics forecasts double-digit sequential revenue growth in its Core IoT business for the following quarter. The company's revenue expectations range from $230 million to $260 million, with projected gross margins between 44.5% and 46.5% on a GAAP basis, and 52.5% to 54.5% on a non-GAAP basis.
These are the latest developments for Synaptics, a company recognized for integrating advanced connectivity and AI-enhanced technologies across various platforms. The company continues to focus on innovation, particularly with its Astra platform, and remains optimistic about future growth in the Core IoT business.
InvestingPro Insights
In light of recent insider transactions at Synaptics Inc (NASDAQ:SYNA), investors may find it valuable to consider additional financial metrics and analyst insights to gauge the company's current standing and future outlook. According to InvestingPro data, Synaptics holds a market capitalization of $3.53 billion and is trading at a negative P/E ratio of -32.95, reflecting market skepticism about its earnings potential. The company's revenue saw a significant decline of -41.45% over the last twelve months as of Q3 2024, which aligns with analysts' anticipation of a sales decline in the current year.
Despite these challenges, Synaptics' liquid assets outpace its short-term obligations, suggesting a solid liquidity position. Moreover, the company operates with a moderate level of debt, which may provide some financial flexibility. Still, it's worth noting that Synaptics has not been profitable over the last twelve months, and its stock has experienced a substantial decline of -25.61% over the last six months.
Two key InvestingPro Tips for Synaptics are particularly relevant in the context of the recent insider sale. Firstly, 8 analysts have revised their earnings downwards for the upcoming period, which might explain some of the cautious sentiment surrounding the stock. Secondly, the company is expected to return to profitability this year, which could signal a potential turnaround for investors to consider.
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