Synaptics executive sells over $149k in company stock

Synaptics Inc (NASDAQ:SYNA) has reported a recent transaction involving a high-level executive's sale of company stock. Gupta Vikram, Senior Vice President & General Manager, IoT/Processors and Chief Product Officer at Synaptics, sold 1,870 shares of common stock at a price of $80.00 per share. The total value of the stock sold amounts to approximately $149,600.

This transaction was executed on August 23, 2024, and was conducted under a pre-arranged 10b5-1 Trading Plan, which allows company insiders to set up a trading plan for selling stocks they own. Vikram now holds 46,797 shares following the transaction.

Investors often monitor insider sales as they provide insights into an executive's perspective on the company's current valuation. However, it's important to note that trades under a 10b5-1 plan are scheduled in advance to avoid any accusations of insider trading, and thus may not always reflect the executive's discretionary trading behavior.

Synaptics, known for its work in the field of human interface solutions, including touch, display, and biometrics technologies for a wide range of electronic devices, is a leader in the semiconductor industry. The company's stock performance is closely watched by investors interested in the tech sector.

For those tracking Synaptics' insider transactions, the details of the sale can provide a piece of the puzzle when it comes to evaluating the company's stock and future prospects.

In other recent news, Synaptics Incorporated has been the focus of several financial firms' analyses. Despite a shift in the timeline for reaching its $1 billion wireless Internet of Things (IoT) revenue target, Synaptics is expected to see double-digit year-over-year growth in this segment, according to KeyBanc. The company is also focusing on new design wins in high-performance Wi-Fi technologies to boost its wireless revenues.

Synaptics reported 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. For the first quarter of 2025, Synaptics anticipates revenues to be around $255 million.

In terms of mergers and acquisitions, Synaptics' management indicated the company remains open to strategic opportunities. KeyBanc, JPMorgan, TD Cowen, and Needham have all recently weighed in on Synaptics' performance. While JPMorgan retained an Overweight rating, KeyBanc, TD Cowen, and Needham all lowered their price targets for Synaptics but maintained their positive ratings on the stock.

The company's core Internet of Things (IoT) business is seeing robust design activity, with several design wins each valued at over $20 million. These wins are expected to complement the cyclical demand recovery. Furthermore, the pipeline for the AI edge platform, Astra, is growing, driven by applications in home automation, security cameras, and video conferencing, where Synaptics is outpacing competitors due to its early market entry.

InvestingPro Insights

Synaptics Inc (NASDAQ:SYNA) has recently been the subject of discussion after a notable insider transaction. To provide investors with a deeper understanding of the company's financial health and market position, several key metrics and InvestingPro Tips can offer additional context.

InvestingPro Data indicates that Synaptics has a market capitalization of $3.19 billion, with a P/E ratio of 25.19, which adjusts to 21.97 when considering the last twelve months as of Q4 2024. This suggests a valuation that is potentially appealing to investors looking for growth opportunities, as the company trades at a low P/E ratio relative to its near-term earnings growth potential. Additionally, the PEG ratio, which measures the price of a stock to its earnings growth rate, stands at an attractive 0.35, hinting at a possibly undervalued stock given its growth trajectory.

Despite a decrease in revenue by 29.2% over the last twelve months as of Q4 2024, there was a quarterly revenue growth of 8.84% in Q4 2024, indicating a recent uptick in sales. This could be a sign of recovery or growth potential which investors may want to consider.

InvestingPro Tips for Synaptics include analyst sentiment that is leaning positive, with 5 analysts having revised their earnings upwards for the upcoming period. This optimism is bolstered by the fact that analysts predict the company will be profitable this year. Another factor to consider is that Synaptics operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, which provides financial flexibility and could be a reassuring sign for investors concerned about the company's ability to manage its finances in the short term.

For those interested in further insights and tips, InvestingPro offers additional information on Synaptics, including more detailed financial metrics and analyst forecasts. There are currently 8 additional InvestingPro Tips available at https://www.investing.com/pro/SYNA for investors who are looking to make an informed decision on the company's stock.

Considering the recent insider sale and the provided financial data, investors may want to weigh these insights as they assess Synaptics' potential for growth and stability in the dynamic tech sector.

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