SYNNEX (SNX) Trading 12.3% Higher on Better-Than-Expected Earnings

Shares of SYNNEX Co. (NYSE:SNX) traded up 12.3% on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $99.75 and last traded at $97.48. 1,652,274 shares traded 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 earnings per share for the quarter, beating analysts’ consensus estimates of $3.25 by $0.40. SYNNEX had a net margin of 1.41% and a return on equity of 17.16%. The firm had revenue of $5.62 billion during the quarter, compared to analysts’ expectations of $5.54 billion. During the same period in the previous year, the company earned $2.79 earnings per share. SYNNEX’s quarterly revenue was up 5.8% compared to the same quarter last year.

The business also recently declared a quarterly dividend, which will be paid on Thursday, January 31st. Investors of record on Tuesday, January 22nd will be given a $0.375 dividend. The ex-dividend date of this dividend is Friday, January 18th. This is a boost from SYNNEX’s previous quarterly dividend of $0.35. This represents a $1.50 dividend on an annualized basis and a yield of 1.54%. SYNNEX’s payout ratio is 15.80%.



A number of equities research analysts recently weighed in on the stock. Zacks Investment Research cut shares of SYNNEX from a “buy” rating to a “hold” rating in a research report on Wednesday, December 5th. ValuEngine raised shares of SYNNEX from a “strong sell” rating to a “sell” rating in a report on Friday. TheStreet cut shares of SYNNEX from a “b-” rating to a “c+” rating in a report on Friday, October 12th. Needham & Company LLC raised shares of SYNNEX from a “buy” rating to a “strong-buy” rating and set a $135.00 target price for the company in a report on Thursday, October 4th. Finally, Stifel Nicolaus reduced their target price on shares of SYNNEX from $130.00 to $114.00 and set a “buy” rating for the company in a report on Thursday, October 4th. One research analyst has rated the stock with a sell rating, five have assigned a buy rating and one has issued a strong buy rating to the stock. SYNNEX presently has an average rating of “Buy” and a consensus price target of $113.80.

In related news, CFO Marshall Witt sold 600 shares of the stock in a transaction dated Wednesday, January 2nd. The shares were sold at an average price of $79.31, for a total transaction of $47,586.00. Following the completion of the transaction, the chief financial officer now directly owns 17,674 shares of the company’s stock, valued at $1,401,724.94. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Matthew Miau purchased 122,202 shares of the business’s stock in a transaction that occurred on Friday, October 19th. The shares were purchased at an average cost of $78.27 per share, with a total value of $9,564,750.54. Following the completion of the acquisition, the director now directly owns 364,352 shares of the company’s stock, valued at $28,517,831.04. The disclosure for this purchase can be found here. Over 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 currently owned by corporate insiders.

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

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

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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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