Richard T. Hume, a director at TD Synnex Corp (NYSE:SNX), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Hume sold a total of 20,000 shares of common stock on November 4, 2024, amounting to approximately $2.33 million. The shares were sold at prices ranging from $115.89 to $117.17 per share.
These transactions were conducted under a pre-established Rule 10b5-1 trading plan, which Hume adopted on June 28, 2024. Following these sales, Hume retains ownership of 151,080 shares. The sales reflect a strategic move within the boundaries of the trading plan, providing Hume with liquidity while maintaining a substantial stake in the company.
In other recent news, TD Synnex demonstrated strong fiscal performance in its third quarter, with gross billings rising by 9% year-over-year to $20.3 billion. The firm's non-GAAP diluted earnings per share (EPS) were $2.86, slightly surpassing expectations. For the fourth fiscal quarter, TD Synnex anticipates gross billings to range between $20.5 billion and $21.5 billion, with a projected non-GAAP diluted EPS of $2.80 to $3.30.
In addition, TD Synnex recently adopted significant amendments to its corporate bylaws and hinted at a proposal to alter its certificate of incorporation. Loop Capital and Goldman Sachs maintained a Buy rating on TD Synnex, acknowledging the company's robust demand in the IT market and positive growth trends.
These recent developments highlight TD Synnex's strategic growth plans and its focus on enhancing value across multiple technology categories, including cloud, hyperscale infrastructure, and Hyve solutions. Despite some year-over-year decline in gross margin, the company remains optimistic about the IT market recovery, especially in Europe and the Asia-Pacific region, and anticipates increased IT spending in the fourth quarter.
InvestingPro Insights
To provide additional context to Richard T. Hume's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for TD Synnex Corp (NYSE:SNX).
As of the latest data, TD Synnex has a market capitalization of $10.06 billion, positioning it as a prominent player in the Electronic Equipment, Instruments & Components industry. The company's P/E ratio stands at 15.18, which is relatively modest compared to some tech sector peers.
One notable InvestingPro Tip highlights that management has been aggressively buying back shares. This share repurchase activity, coupled with Hume's pre-planned sale, suggests a balanced approach to capital allocation and insider transactions. Additionally, TD Synnex boasts a high shareholder yield, which aligns with the company's shareholder-friendly policies.
On the dividend front, TD Synnex has raised its dividend for 4 consecutive years and has maintained dividend payments for 11 consecutive years. The current dividend yield is 1.38%, with a impressive dividend growth rate of 14.29% over the last twelve months. This consistent dividend policy may provide some reassurance to investors in light of the insider sale.
It's worth noting that TD Synnex's revenue for the last twelve months as of Q3 2024 was $57.02 billion, although there was a slight revenue decline of 4.01% during this period. Despite this, the company remains profitable, with analysts predicting continued profitability for the current year.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for TD Synnex, providing a deeper understanding of the company's financial health and market position.
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