SYNNEX (SNX) Trading 12.3% Higher Following Strong Earnings

Shares of SYNNEX Co. (NYSE:SNX) traded up 12.3% during mid-day trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $99.75 and last traded at $97.48. 1,652,274 shares changed hands during mid-day trading, an increase of 156% from the average session volume of 644,722 shares. The stock had previously closed at $86.83.

The business services provider reported $3.65 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $3.25 by $0.40. The company had revenue of $5.62 billion during the quarter, compared to analyst estimates of $5.54 billion. SYNNEX had a return on equity of 17.16% and a net margin of 1.41%. The firm’s revenue was up 5.8% on a year-over-year basis. During the same period in the prior year, the firm posted $2.79 earnings per share.

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 31st. Shareholders of record on Tuesday, January 22nd will be paid a dividend of $0.375 per share. The ex-dividend date of this dividend is Friday, January 18th. This is a positive change from SYNNEX’s previous quarterly dividend of $0.35. This represents a $1.50 annualized dividend and a yield of 1.54%. SYNNEX’s dividend payout ratio is currently 15.80%.

Several equities research analysts have commented on the company. ValuEngine upgraded SYNNEX from a “strong sell” rating to a “sell” rating in a research note on Friday. Zacks Investment Research lowered SYNNEX from a “hold” rating to a “sell” rating in a research note on Thursday, October 4th. Cross Research raised SYNNEX from a “hold” rating to a “buy” rating in a research report on Friday. SunTrust Banks decreased their target price on SYNNEX to $100.00 and set a “buy” rating for the company in a research report on Thursday, October 4th. Finally, Stifel Nicolaus decreased their target price on SYNNEX from $130.00 to $114.00 and set a “buy” rating for the company in a research report on Thursday, October 4th. One equities research analyst has rated the stock with a sell rating, five have issued a buy rating and one has assigned a strong buy rating to the company. The stock presently has an average rating of “Buy” and an average target price of $113.80.

In other SYNNEX news, Director Matthew Miau purchased 122,202 shares of SYNNEX stock in a transaction that occurred on Friday, October 19th. The stock was purchased at an average price of $78.27 per share, with a total value of $9,564,750.54. Following the completion of the acquisition, the director now owns 364,352 shares of the company’s stock, valued at approximately $28,517,831.04. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Marshall Witt sold 600 shares of the stock in a transaction dated Thursday, November 1st. The shares were sold at an average price of $78.22, for a total value of $46,932.00. Following the completion of the transaction, the chief financial officer now directly owns 18,874 shares of the company’s stock, valued at approximately $1,476,324.28. The disclosure for this sale can be found here. In the last ninety days, insiders bought 370,331 shares of company stock valued at $29,495,099 and sold 4,609 shares valued at $361,156. 3.20% of the stock is owned by corporate insiders.

A number of institutional investors and hedge funds have recently modified their holdings of SNX. Meeder Asset Management Inc. boosted its holdings in SYNNEX by 199.0% in the third quarter. Meeder Asset Management Inc. now owns 1,223 shares of the business services provider’s stock valued at $104,000 after purchasing an additional 814 shares during the last quarter. Point72 Hong Kong Ltd purchased a new position in SYNNEX in the second quarter valued at about $136,000. Cornerstone Wealth Management LLC boosted its holdings in SYNNEX by 96.1% in the third quarter. Cornerstone Wealth Management LLC now owns 25,581 shares of the business services provider’s stock valued at $196,000 after purchasing an additional 12,539 shares during the last quarter. US Bancorp DE lifted its holdings in SYNNEX by 66.6% during the 3rd quarter. US Bancorp DE now owns 2,456 shares of the business services provider’s stock worth $208,000 after buying an additional 982 shares during the last quarter. Finally, Nomura Holdings Inc. bought a new position in SYNNEX during the 2nd quarter worth approximately $210,000. 57.75% of the stock is owned by hedge funds and other institutional investors.

The company has a debt-to-equity ratio of 0.47, a current ratio of 1.51 and a quick ratio of 0.94. The firm has a market capitalization of $4.36 billion, a P/E ratio of 11.00 and a beta of 0.69.

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SYNNEX Company Profile (NYSE:SNX)

SYNNEX Corporation provides business process services in North and South America, the Asia-Pacific, Europe, and internationally. It operates in two segments, Technology Solutions and Concentrix. The Technology Solutions segment distributes peripherals; information technology systems, including data center server and storage solutions; system components; software; networking/communications/security equipment; consumer electronics; and complementary products.

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