In a recent move, a Synaptics Inc (NASDAQ:SYNA) executive has sold a portion of their company stock, signaling a transaction that investors may want to note. The transaction was carried out by Senior Vice President and General Manager, IoT/Processors and Chief Product Officer, Vikram Gupta.
On August 28, Gupta sold 1,008 shares of Synaptics common stock at a price of $80 per share, totaling $80,640. This sale was executed under a 10b5-1 Trading Plan, which was established on March 14, 2024. Such plans allow company insiders to set up a predetermined schedule for buying and selling stocks at a time when they are not in possession of material non-public information, providing a defense against claims of insider trading.
Following the sale, Gupta still owns 45,789 shares of Synaptics, indicating a continued investment in the company's future. Synaptics, known for its work in semiconductors and related devices, is incorporated in Delaware and has its headquarters in San Jose, California.
Investors often monitor insider sales as they can provide insights into an executive's perspective on the company's current valuation and future prospects. However, it is important to note that such transactions can be motivated by a variety of personal financial considerations and do not always signal a change in company fundamentals.
Synaptics Inc remains a key player in the semiconductor industry, and its stock performance is closely watched by market participants interested in the tech sector.
In other recent news, Synaptics Incorporated has experienced a series of adjustments to its stock price target by several financial firms, including KeyBanc, JPMorgan (NYSE:JPM), TD Cowen, and Needham, despite maintaining positive ratings. KeyBanc reiterated an Overweight rating, citing potential growth in the company's wireless Internet of Things (IoT) segment. This optimism is backed by Synaptics' focus on new design wins in high-performance Wi-Fi technologies and a return to a $200 million annual run rate.
Recent financial reports highlight Synaptics' strong performance in the fourth quarter of fiscal year 2024, with revenues reaching $247.4 million, marking a 9% increase year-over-year. 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.
On the mergers and acquisitions front, Synaptics' management indicated the company remains open to strategic opportunities. The company's core IoT business is seeing robust design activity, with several design wins each valued at over $20 million. Furthermore, the pipeline for the AI edge platform, Astra, is growing, driven by applications in home automation, security cameras, and video conferencing.
Analysts from various firms including KeyBanc, JPMorgan, and Needham have expressed optimism about Synaptics' long-term growth prospects, particularly driven by the IoT sector. Despite the adjustments in price targets, these recent developments underline the positive outlook for Synaptics' financial future.
InvestingPro Insights
As investors digest the news of Vikram Gupta's stock sale in Synaptics Inc (NASDAQ:SYNA), they might find value in the latest InvestingPro data and tips. According to InvestingPro, Synaptics is trading at a low P/E ratio relative to near-term earnings growth, with a current P/E ratio of 25.22 and an adjusted P/E ratio for the last twelve months as of Q4 2024 at 22.17. This could indicate that the stock is undervalued given its earnings prospects.
Moreover, the company's liquid assets exceed its short-term obligations, suggesting a solid financial footing that could reassure investors of its ability to meet immediate liabilities. This financial stability is reflected in the company's PEG ratio for the last twelve months as of Q4 2024, which stands at 0.35, pointing to potential undervaluation when factoring in growth.
While the company's revenue has seen a decline of 29.2% in the last twelve months as of Q4 2024, the quarterly revenue growth for Q4 2024 shows an uptick of 8.84%, indicating a possible turnaround or seasonal strength in sales. Investors may view this as a positive sign of recovery or growth potential.
For those seeking deeper insights, InvestingPro offers additional tips on Synaptics Inc, such as the company's moderate level of debt and its strong return over the last five years. There are 9 InvestingPro Tips in total for Synaptics, available for investors who are looking for more detailed analysis and guidance on the company's stock.
As the semiconductor industry continues to evolve, keeping an eye on these financial metrics and expert tips could provide investors with a more nuanced understanding of Synaptics' position in the market and its potential investment value.
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