Synaptics, Incorporated (SYNA) Shares Soar on Chinese Acquisition Rumor


Shares of Synaptics, Incorporated (NASDAQ:SYNA) are trading up huge today, after a rumor has emerged that a Chinese investment group is interested in in acquiring them. Interestingly it is the same group that was said to have offered Synaptics $110 per share back in September of last year.

According to Bloomberg an agreement could be reached this March. If this does go through, it would certainly bring a large premium to shareholders, but details remain sketchy as does the original source of the information. Those providing details to Bloomberg asked to remain anonymous leaving it up to investors to decide if they are reliable or not.

The stock is up 27.12% or $16.83 following the news, hitting $78.88 per share. About 2.05 million shares traded hands or up 247.81% from the average. SYNA has declined 38.27% since June 15, 2015 and is currently downtrending. It has underperformed the S&P500 by 29.40%.

From a total of 7 analysts covering Synaptics Inc (NASDAQ:SYNA) stock, 6 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 86% of the ratings are positive. The highest target price is $105 while the lowest target price is $78. The mean of all analyst targets is $90 which is 14.10% above today’s ($78.88) stock price. Synaptics Inc was the topic of 14 analyst reports since August 3, 2015 according to the firm StockzIntelligence Inc. Lake Street maintained shares on January 12 with a “Buy” rating. Stifel Nicolaus maintained SYNA stock in a recent report from October 23 with a “Buy” rating. Finally, Mizuho maintained the stock with a “Buy” rating in a report they issued on an October 23.

The institutional sentiment decreased to 0.79 in Q2 2015. It’s down 0.28, from 1.07 in 2015Q2. The ratio fall, as 79 funds sold all their Synaptics, Incorporated shares they owned while 100 reduced their positions. 42 funds bought stakes while 100 increased their total positions. Institutions now own 31.13 million shares which is 14.54% less than the previous share count of 36.43 million in 2015Q2.

Crosslink Capital Inc holds 5.01% of its total portfolio in Synaptics, Incorporated, equating to 436,003 shares. Mitchell Capital Management Co owns 113,812 shares representing 3.28% of their total US portfolio. Moreover, New Amsterdam Partners Llc Ny has 2.98% of their total portfolio invested in the company, equating to 355,623 shares. The New York-based Tanaka Capital Management Inc has a total of 2.26% of their portfolio invested in the stock. Summit Creek Advisors Llc, a Minnesota-based fund reported 161,089 shares owned.

Since April 1, 2015, the stock had 0 buys, and 14 insider sales for a total of $8.41 million in net activity. Lee Francis F sold 20,000 shares worth $1.70M. Sewell Bretton sold 2,133 shares worth $183,182. Knittel Russell J sold 15,000 shares worth $1.30M. Buchanan Jeffrey D sold 1,500 shares worth $127,500. The insider Deutsch Scott sold 328 shares worth $27,880.

Synaptics Incorporated developer and supplier of custom-designed human interface solutions that enable people to interact more easily and intuitively with a wide variety of mobile computing, communications, entertainment, and other electronic devices. The company has a market cap of $3.00 billion. The portfolio includes Display Driver ICs which drive high-performance displays for smartphones and tablets. It has 28.25 P/E ratio. The ClearPad family supports touchscreen solutions for devices ranging from entry-level mobile phones to flagship premium smartphones, tablets and notebook PCs.