Zacks Investment Research upgraded shares of SYNNEX (NYSE:SNX) from a hold rating to a strong-buy rating in a research report report published on Monday morning, Zacks.com reports. The brokerage currently has $153.00 target price 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.”
A number of other research firms have also weighed in on SNX. TheStreet raised SYNNEX from a c+ rating to a b- rating in a research report on Friday, September 27th. Citigroup raised their price objective on SYNNEX from $140.00 to $175.00 and gave the company a buy rating in a research report on Monday. ValuEngine lowered SYNNEX from a sell rating to a strong sell rating in a research report on Wednesday, October 2nd. Loop Capital reaffirmed a buy rating and set a $175.00 price objective on shares of SYNNEX in a research report on Friday, January 10th. Finally, Barrington Research raised their price objective on SYNNEX from $118.00 to $150.00 and gave the company an outperform rating in a research report on Friday, January 10th. They noted that the move was a valuation call. One research analyst has rated the stock with a sell rating, five have issued a buy rating and two have issued a strong buy rating to the company. The stock currently has a consensus rating of Buy and a consensus price target of $155.43.
Shares of NYSE:SNX opened at $150.13 on Monday. SYNNEX has a 52-week low of $78.55 and a 52-week high of $151.29. The firm has a market capitalization of $7.58 billion, a P/E ratio of 11.32, a P/E/G ratio of 0.88 and a beta of 1.03. The stock has a 50 day moving average price of $129.69 and a 200-day moving average price of $109.20. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.06 and a current ratio of 1.62.
SYNNEX (NYSE:SNX) last announced its earnings results on Thursday, January 9th. The business services provider reported $4.26 earnings per share (EPS) for the quarter, topping the 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 firm had revenue of $6.58 billion during the quarter, compared to analyst estimates of $5.99 billion. During the same quarter in the prior year, the company earned $3.65 EPS. The business’s revenue was up 18.7% compared to the same quarter last year. On average, equities analysts forecast that SYNNEX will post 14.01 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 31st. Investors of record on Friday, January 24th will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 1.07%. The ex-dividend date of this dividend is Thursday, January 23rd. This is a positive change from SYNNEX’s previous quarterly dividend of $0.38. SYNNEX’s dividend payout ratio (DPR) is 11.31%.
In other SYNNEX news, Director Thomas S. Wurster sold 2,000 shares of the stock in a transaction on Monday, November 4th. The stock was sold at an average price of $120.83, for a total transaction of $241,660.00. Also, SVP Simon Leung sold 1,000 shares of the stock in a transaction on Thursday, October 31st. The shares were sold at an average price of $117.77, for a total value of $117,770.00. Following the sale, the senior vice president now owns 17,528 shares in the company, valued at $2,064,272.56. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 14,980 shares of company stock valued at $1,855,355. 3.20% of the stock is owned by corporate insiders.
A number of institutional investors and hedge funds have recently modified their holdings of the business. Nuveen Asset Management LLC boosted its stake 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 purchasing an additional 88,012 shares during the last quarter. First Trust Advisors LP boosted its stake in SYNNEX by 599.0% during the 3rd quarter. First Trust Advisors LP now owns 367,785 shares of the business services provider’s stock valued at $41,523,000 after purchasing an additional 315,172 shares during the last quarter. Copeland Capital Management LLC boosted its stake in SYNNEX by 4.7% during the 3rd quarter. Copeland Capital Management LLC now owns 348,452 shares of the business services provider’s stock valued at $39,340,000 after purchasing an additional 15,509 shares during the last quarter. Invesco Ltd. boosted its stake in SYNNEX by 112.0% during the 2nd quarter. Invesco Ltd. now owns 130,051 shares of the business services provider’s stock valued at $12,797,000 after purchasing an additional 68,714 shares during the last quarter. Finally, Paloma Partners Management Co purchased a new stake in SYNNEX during the 2nd quarter valued at $12,566,000. Institutional investors and hedge funds 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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