Synovus Financial (NYSE:SNV) Shares Gap Down on Disappointing Earnings

Synovus Financial Corp. (NYSE:SNV) shares gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $36.62, but opened at $33.85. Synovus Financial shares last traded at $33.92, with a volume of 842,605 shares changing hands.

The bank reported $0.79 earnings per share for the quarter, missing analysts’ consensus estimates of $0.99 by ($0.20). Synovus Financial had a net margin of 15.74% and a return on equity of 14.95%. The firm had revenue of $537.73 million for the quarter, compared to analysts’ expectations of $547.62 million. During the same period in the prior year, the business posted $1.33 earnings per share. The business’s quarterly revenue was down 12.4% on a year-over-year basis.

Synovus Financial Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, April 1st. Investors of record on Thursday, March 21st were given a dividend of $0.38 per share. The ex-dividend date of this dividend was Wednesday, March 20th. This represents a $1.52 annualized dividend and a yield of 4.43%. Synovus Financial’s payout ratio is 43.93%.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. Royal Bank of Canada increased their target price on shares of Synovus Financial from $42.00 to $44.00 and gave the stock an “outperform” rating in a report on Tuesday, April 9th. Jefferies Financial Group lowered their price objective on shares of Synovus Financial from $46.00 to $43.00 and set a “buy” rating for the company in a report on Monday, April 8th. Morgan Stanley boosted their target price on shares of Synovus Financial from $29.00 to $37.00 and gave the company an “equal weight” rating in a report on Wednesday, February 7th. DA Davidson reissued a “buy” rating on shares of Synovus Financial in a research report on Monday, January 15th. Finally, Keefe, Bruyette & Woods lifted their price target on Synovus Financial from $45.00 to $46.00 and gave the stock an “outperform” rating in a research report on Friday, January 19th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and nine have issued a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $41.50.

Insider Buying and Selling

In other Synovus Financial news, EVP Thomas T. Dierdorff sold 2,045 shares of the company’s stock in a transaction that occurred on Tuesday, January 23rd. The stock was sold at an average price of $38.23, for a total value of $78,180.35. Following the completion of the transaction, the executive vice president now directly owns 11,086 shares in the company, valued at approximately $423,817.78. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In other Synovus Financial news, Director Tim E. Bentsen sold 4,671 shares of the stock in a transaction dated Wednesday, January 24th. The shares were sold at an average price of $38.62, for a total transaction of $180,394.02. Following the completion of the transaction, the director now owns 33,144 shares of the company’s stock, valued at approximately $1,280,021.28. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Thomas T. Dierdorff sold 2,045 shares of the stock in a transaction that occurred on Tuesday, January 23rd. The shares were sold at an average price of $38.23, for a total value of $78,180.35. Following the transaction, the executive vice president now directly owns 11,086 shares of the company’s stock, valued at $423,817.78. The disclosure for this sale can be found here. 0.81% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Synovus Financial

Several institutional investors have recently bought and sold shares of the business. Phocas Financial Corp. purchased a new stake in shares of Synovus Financial during the 4th quarter valued at about $7,115,000. American Century Companies Inc. raised its stake in shares of Synovus Financial by 46.0% in the third quarter. American Century Companies Inc. now owns 957,939 shares of the bank’s stock valued at $26,631,000 after acquiring an additional 301,604 shares during the period. Prudential PLC purchased a new stake in shares of Synovus Financial in the third quarter valued at $1,025,000. rhino investment partners Inc bought a new stake in shares of Synovus Financial in the 3rd quarter worth about $5,984,000. Finally, Barclays PLC boosted its stake in shares of Synovus Financial by 17.6% during the 3rd quarter. Barclays PLC now owns 437,126 shares of the bank’s stock worth $12,151,000 after purchasing an additional 65,434 shares during the period. Institutional investors own 83.85% of the company’s stock.

Synovus Financial Stock Down 6.2 %

The company has a debt-to-equity ratio of 0.42, a current ratio of 0.89 and a quick ratio of 0.89. The company has a 50-day simple moving average of $37.96 and a 200-day simple moving average of $34.46. The firm has a market cap of $5.03 billion, a PE ratio of 9.86, a price-to-earnings-growth ratio of 3.93 and a beta of 1.40.

Synovus Financial Company Profile

Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides commercial and consumer banking products and services. It operates through four segments: Community Banking, Wholesale Banking, Consumer Banking, and Financial Management Services. The company's commercial banking services include treasury and asset management, capital market, and institutional trust services, as well as commercial, financial, and real estate lending services.