Zacks Investment Research upgraded shares of SYNNEX (NYSE:SNX) from a hold rating to a strong-buy rating in a research report sent to investors on Monday, Zacks.com reports. They currently have $153.00 price objective on the business services provider’s stock.
According to Zacks, “SYNNEX reported strong fourth-quarter fiscal 2019 results, wherein both top and bottom line exceeded estimates and improved on a year-over-year basis. The company is benefiting from growth in both Technology Solutions and Concentrix business. Solid demand for its portfolio of products and services is a tailwind. Moreover, acquisitions and partnerships are helping it expand its product portfolio. The company’s buyout of Covergys is likely to be a key consistent driver. The company announced its intention to split Technology Solutions and Concentrix segment into two publicly traded entities. Management believes that this strategic action would help add shareholder value and enhance the company's competitive edge. The transaction is expected to be completed in the second half of 2020.”
Several other equities analysts have also recently commented on SNX. Citigroup boosted their target price on SYNNEX from $140.00 to $175.00 and gave the stock a buy rating in a research report on Monday. Stifel Nicolaus boosted their target price on SYNNEX from $140.00 to $150.00 and gave the stock a buy rating in a research report on Friday, January 10th. Loop Capital restated a buy rating and set a $175.00 target price on shares of SYNNEX in a research report on Friday, January 10th. TheStreet upgraded SYNNEX from a c+ rating to a b- rating in a research report on Friday, September 27th. Finally, Raymond James boosted their target price on SYNNEX from $140.00 to $165.00 and gave the stock a strong-buy rating in a research report on Friday, January 10th. They noted that the move was a valuation call. One equities research analyst has rated the stock with a sell rating, five have given a buy rating and two have issued a strong buy rating to the stock. The stock presently has an average rating of Buy and an average target price of $155.43.
SYNNEX stock opened at $150.13 on Monday. SYNNEX has a 52 week low of $78.55 and a 52 week high of $151.29. The business has a 50-day simple moving average of $129.69 and a 200 day simple moving average of $109.20. The company has a quick ratio of 1.06, a current ratio of 1.62 and a debt-to-equity ratio of 0.72. The stock has a market cap of $7.58 billion, a price-to-earnings ratio of 11.32, a PEG ratio of 0.88 and a beta of 1.03.
SYNNEX (NYSE:SNX) last posted its earnings results on Thursday, January 9th. The business services provider reported $4.26 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $3.61 by $0.65. SYNNEX had a return on equity of 18.84% and a net margin of 2.11%. The business had revenue of $6.58 billion during the quarter, compared to analysts’ expectations of $5.99 billion. During the same period in the previous year, the business earned $3.65 earnings per share. The firm’s revenue was up 18.7% on a year-over-year basis. On average, research analysts anticipate that SYNNEX will post 14.01 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 31st. Stockholders of record on Friday, January 24th will be issued a $0.40 dividend. This is a boost from SYNNEX’s previous quarterly dividend of $0.38. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.07%. The ex-dividend date is Thursday, January 23rd. SYNNEX’s dividend payout ratio is presently 11.31%.
In other news, SVP Simon Leung sold 1,000 shares of the company’s stock in a transaction dated Thursday, October 31st. The stock was sold at an average price of $117.77, for a total value of $117,770.00. Following the completion of the transaction, the senior vice president now directly owns 17,528 shares in the company, valued at approximately $2,064,272.56. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Thomas S. Wurster sold 2,000 shares of the company’s stock in a transaction dated Monday, November 4th. The stock was sold at an average price of $120.83, for a total value of $241,660.00. Insiders sold a total of 14,980 shares of company stock valued at $1,855,355 over the last quarter. Company insiders own 3.20% of the company’s stock.
Several institutional investors and hedge funds have recently bought and sold shares of SNX. First Trust Advisors LP boosted its holdings in shares of SYNNEX by 599.0% in the 3rd quarter. First Trust Advisors LP now owns 367,785 shares of the business services provider’s stock worth $41,523,000 after purchasing an additional 315,172 shares in the last quarter. Paloma Partners Management Co purchased a new stake in SYNNEX during the 2nd quarter valued at about $12,566,000. Jane Street Group LLC boosted its holdings in SYNNEX by 4,928.7% during the 2nd quarter. Jane Street Group LLC now owns 108,468 shares of the business services provider’s stock valued at $10,673,000 after acquiring an additional 106,311 shares during the period. Hennessy Advisors Inc. purchased a new stake in SYNNEX during the 4th quarter valued at about $12,932,000. Finally, Nuveen Asset Management LLC boosted its holdings in SYNNEX by 23.4% during the 2nd quarter. Nuveen Asset Management LLC now owns 463,550 shares of the business services provider’s stock valued at $45,614,000 after acquiring an additional 88,012 shares during the period. Hedge funds and other institutional investors own 75.53% of the company’s stock.
SYNNEX Company Profile
SYNNEX Corporation provides business process services in the Americas, Asia-Pacific, Europe and Africa. It operates in two segments, Technology Solutions and Concentrix. The Technology Solutions segment distributes peripherals; information technology systems, including data center servers and storage solutions; system components; software; networking, communications, and security equipment; consumer electronics; and complementary products.
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