TD SYNNEX Corp (NYSE:SNX), a leading distributor of IT products and services, has reported recent stock transactions by its Chief Financial Officer, Witt Marshall. According to the latest filings, Marshall sold a significant portion of his holdings in the company.
The transactions, which occurred on October 9, 2024, included the sale of 5,653 shares of TD SYNNEX common stock, resulting in a total value of over $680,000. The sales were executed at varying prices, with the weighted average sales price for the first set of transactions being $120.84, ranging from $120.72 to $120.98. The subsequent sales had a weighted average price of $121.30, ranging from $121.00 to $121.93, and the final batch of shares was sold at an average of $122.25, with individual prices between $122.06 and $122.36.
In addition to these sales, Marshall also acquired 1,510 shares through the exercise of stock options, with each share priced at $45.64, totaling $68,916. The options exercised are part of a compensation package, which typically vests over a set period.
The transactions were conducted under a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to sell stock at predetermined times to avoid accusations of trading on nonpublic information. This plan had been adopted by Marshall on May 8, 2024.
After these transactions, Marshall's direct holdings in TD SYNNEX common stock have changed, reflecting both the acquisition and disposal of shares. These movements are part of the regular financial activities of corporate executives, who often use stock options as part of their compensation and may sell shares for personal financial management reasons.
Investors and analysts often monitor insider trading activities for insights into the company's performance and management's confidence in the business. However, such transactions do not necessarily indicate the company's operational outlook and may be driven by individual financial strategies or portfolio diversification efforts.
In other recent news, TD Synnex has reported a 9% year-over-year increase in gross billings to $20.3 billion for its third quarter, with non-GAAP diluted earnings per share (EPS) of $2.86, slightly surpassing expectations. The company's growth has been driven by its Strategic Technologies sector, which includes cloud computing, AI, and security. Despite the positive growth, TD Synnex's gross margin has seen some year-over-year decline, attributed to increased investments in Hyve's capabilities, particularly in next-generation AI servers.
The company recently adopted significant amendments to its corporate bylaws, adjusting the voting threshold required for the board and shareholders to adopt, amend, or repeal bylaws. Loop Capital and Goldman Sachs (NYSE:GS) both maintained a Buy rating on TD Synnex, reflecting confidence in the company's market position and its ability to capitalize on the current IT spending environment.
These recent developments underscore TD Synnex's strategic growth plans and its focus on enhancing value across multiple technology categories. TD Synnex expects Q4 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. Goldman Sachs projects an 8% increase in revenue growth for TD Synnex in fiscal 2025, driven by the anticipated recovery in PC sales and networking growth.
InvestingPro Insights
TD SYNNEX Corp's recent insider activity occurs against a backdrop of solid financial performance and strategic management decisions. According to InvestingPro data, the company boasts a market capitalization of $10.19 billion and a P/E ratio of 15.34, suggesting a reasonable valuation relative to earnings.
InvestingPro Tips highlight that management has been aggressively buying back shares, indicating confidence in the company's future prospects. This aligns with the company's shareholder-friendly policies, as evidenced by its high shareholder yield and a track record of raising dividends for four consecutive years.
The company's revenue for the last twelve months stands at $57.02 billion, with a recent quarterly revenue growth of 5.19%. While this growth is positive, it's worth noting that the company suffers from weak gross profit margins, which could be a focus area for improvement.
Despite some analysts revising earnings downwards for the upcoming period, TD SYNNEX remains profitable, with InvestingPro Tips indicating that analysts predict continued profitability this year. The company's strong return over the last five years and high return over the last decade further underscore its long-term performance.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for TD SYNNEX, providing a deeper dive into the company's financial health and market position.
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