Zacks Investment Research Upgrades Synovus Financial Corp. (SNV) to Buy
Synovus Financial Corp. (NYSE:SNV) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Tuesday. The brokerage presently has a $36.00 price target on the stock. Zacks Investment Research’s price target would suggest a potential upside of 10.70% from the company’s previous close.
According to Zacks, “We remain encouraged by Synovus’ cost containment initiatives, which are expected to support bottom-line. Further, the company remains focused on inorganic growth opportunities backed by its strong capital position. In Aug 2016, Synovus inked deal to acquire Entaire Global Companies, Inc., with an aim to diversify its loan portfolio. Management expects the transaction to be immediately accretive to Synovus’ earnings per share, return on equity and return on assets. Also, the company is focused on disposing its distressed assets, thereby enhancing its balance sheet position. However, top-line pressure amid low interest rate environment and stringent regulations remain near-term headwinds.”
A number of other research analysts have also weighed in on SNV. JPMorgan Chase & Co. reissued a “hold” rating on shares of Synovus Financial Corp. in a report on Saturday, July 9th. Bank of America Corp. lowered shares of Synovus Financial Corp. from a “buy” rating to a “neutral” rating in a report on Wednesday, June 29th. Hovde Group raised their target price on shares of Synovus Financial Corp. from $34.00 to $35.50 and gave the company an “outperform” rating in a report on Friday, August 19th. Barclays PLC raised their price target on Synovus Financial Corp. from $29.00 to $31.00 and gave the stock an “underweight” rating in a research report on Wednesday, July 20th. Finally, Wells Fargo & Co. downgraded Synovus Financial Corp. from a “market perform” rating to an “underperform” rating in a research report on Tuesday, August 23rd. Three investment analysts have rated the stock with a sell rating, five have assigned a hold rating and three have given a buy rating to the company. The stock has an average rating of “Hold” and an average target price of $31.25.
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Synovus Financial Corp. (NYSE:SNV) traded down 0.323% during midday trading on Tuesday, reaching $32.415. 480,577 shares of the company’s stock were exchanged. Synovus Financial Corp. has a 12-month low of $25.48 and a 12-month high of $33.80. The company has a market cap of $3.98 billion, a price-to-earnings ratio of 19.180 and a beta of 1.89. The firm has a 50-day moving average price of $32.13 and a 200 day moving average price of $30.53.
Synovus Financial Corp. (NYSE:SNV) last posted its earnings results on Tuesday, July 19th. The company reported $0.49 earnings per share for the quarter, beating analysts’ consensus estimates of $0.47 by $0.02. Synovus Financial Corp. had a net margin of 18.39% and a return on equity of 8.42%. The firm earned $289.30 million during the quarter, compared to analyst estimates of $288.06 million. During the same period last year, the firm posted $0.40 earnings per share. On average, analysts expect that Synovus Financial Corp. will post $1.86 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Monday, October 3rd. Stockholders of record on Thursday, September 15th will be given a dividend of $0.12 per share. The ex-dividend date is Tuesday, September 13th. This represents a $0.48 annualized dividend and a dividend yield of 1.48%. Synovus Financial Corp.’s dividend payout ratio (DPR) is 28.24%.
Several hedge funds have recently added to or reduced their stakes in the company. BNP Paribas Arbitrage SA increased its stake in Synovus Financial Corp. by 238.1% in the second quarter. BNP Paribas Arbitrage SA now owns 62,043 shares of the company’s stock valued at $1,799,000 after buying an additional 43,692 shares during the period. BlueMountain Capital Management LLC increased its stake in Synovus Financial Corp. by 108.6% in the first quarter. BlueMountain Capital Management LLC now owns 35,966 shares of the company’s stock valued at $1,040,000 after buying an additional 18,724 shares during the last quarter. Alpha Windward LLC purchased a new stake in Synovus Financial Corp. during the first quarter valued at $428,000. HBK Investments L P purchased a new stake in Synovus Financial Corp. during the first quarter valued at $332,000. Finally, Jacobs Levy Equity Management Inc. increased its stake in Synovus Financial Corp. by 46.7% in the first quarter. Jacobs Levy Equity Management Inc. now owns 91,922 shares of the company’s stock valued at $2,657,000 after buying an additional 29,270 shares during the last quarter. Institutional investors and hedge funds own 76.68% of the company’s stock.
Synovus Financial Corp. Company Profile
Synovus Financial Corp. is a financial services and a bank holding company. The Company provides integrated financial services, including commercial and retail banking, financial management, insurance and mortgage services to its customers through over 30 locally branded banking divisions of its subsidiary bank, Synovus Bank, and other offices in Georgia, Alabama, South Carolina, Florida and Tennessee.
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