San Jose, CA – Synaptics Inc (NASDAQ:SYNA), a leading company in the semiconductor industry, recently saw a significant stock transaction by one of its top executives. Senior Vice President & General Manager, IoT/Processors and Chief Product Officer, Vikram Gupta, sold 2,731 shares of company stock at a price of $80 per share, totaling $218,480.
The sale took place on September 27, 2024, and was executed under a 10b5-1 Trading Plan, which was established earlier in the year on March 14. This plan allows company insiders to set up a predetermined schedule for selling stocks to avoid any accusations of insider trading. Following this transaction, Gupta still owns a substantial amount of Synaptics stock, with 43,245 shares remaining in his possession, which includes 187 shares acquired under the Issuer's Employee Stock Purchase Plan on September 15, 2024.
Synaptics Inc, incorporated in Delaware and headquartered in San Jose, California, operates within the semiconductors and related devices sector. The company is known for its human interface solutions that enable people to interact more effectively with a wide variety of mobile computing, communications, entertainment, and other electronic devices.
Investors and the market keep a close watch on insider transactions as they can provide insights into an executive’s view of the company's future prospects. Transactions like these are publicly reported to ensure transparency and maintain investor confidence.
The details of the transaction were made available through a Form 4 filing with the Securities and Exchange Commission. Synaptics Inc's shares are publicly traded, and interested parties can monitor such transactions for any potential investment considerations.
In other recent news, Synaptics Incorporated has experienced a series of adjustments from various financial firms. KeyBanc reiterated an Overweight rating on Synaptics' stock, maintaining a $100 price target, despite a shift in the timeline for reaching its $1 billion wireless Internet of Things (IoT) revenue target. The firm projects long-term wireless IoT revenues could contribute approximately $8 to $10 in earnings per share.
Similarly, JPMorgan retained an Overweight rating on Synaptics shares, citing confidence in the company's ability to sustain a recovery trajectory. The company anticipates quarter-over-quarter growth through the end of the year.
However, several financial firms, including KeyBanc, TD Cowen, and Needham, have lowered their price targets for Synaptics but maintained their positive ratings on the stock. Despite these adjustments, the firms express optimism about Synaptics' long-term growth prospects, particularly driven by the IoT sector.
In terms of earnings and revenue, Synaptics reported a strong financial performance in the fourth quarter of fiscal year 2024, with revenues reaching $247.4 million, marking a 9% increase year-over-year and a 4% sequential rise. The company's non-GAAP net income for the quarter stood at $25.6 million, reflecting a 22% increase from the previous quarter and a 31% YoY growth.
These are among the recent developments surrounding Synaptics Incorporated.
InvestingPro Insights
To provide additional context to the recent insider transaction at Synaptics Inc (NASDAQ:SYNA), let's examine some key financial metrics and expert insights from InvestingPro.
As of the latest data, Synaptics has a market capitalization of $3.09 billion. The company's P/E ratio stands at 24.04, which is relatively low compared to its near-term earnings growth potential, according to InvestingPro Tips. This could suggest that the stock might be undervalued at current levels.
Despite the recent stock sale by Senior VP Vikram Gupta, there are positive indicators for the company. InvestingPro Tips highlight that five analysts have revised their earnings upwards for the upcoming period, potentially signaling confidence in Synaptics' future performance. Additionally, the company operates with a moderate level of debt and has liquid assets exceeding short-term obligations, which speaks to its financial stability.
It's worth noting that Synaptics' revenue for the last twelve months as of Q4 2024 was $959.4 million, with a gross profit margin of 45.84%. However, the company experienced a revenue decline of 29.2% over the same period, which investors should consider alongside the insider transaction.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips for Synaptics, providing a more comprehensive view of the company's financial health and market position.
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