Synovus Financial Corp. (NYSE: SNV) Seen Running Too Hot, Let’s Look At This More Closely

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The Vanguard Group, Inc. recently announced the acquisition of new stake in Synovus Financial Corp. (NYSE:SNV). The institutional investor has increased its shareholding in the Financial company by 1.42% to 13.58 million shares with purchase of 0.19 million shares. This fresh investment now brings its stake to 9.22% valued currently at $278.72 million. In addition, Wellington Management Co. LLP raised its holdings by 2.61 million to 10.43 million shares. And Franklin Mutual Advisers LLC has lifted its position by 47.37% or 1.39 million shares – to 4.32 million shares.

With over 0.74 million Synovus Financial Corp. (SNV) shares trading Wednesday and a closing price of $21.06 on the day, the dollar volume was approximately $15.55 million. The shares have shown a negative weekly performance of -2.08% and its price on 07/28/20 gained nearly 4.21%. Currently, there are 147.31M common shares owned by the public and among those 145.14M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 16 analysts who have offered their price forecasts for SNV have a consensus price objective of $25.38. The analysts have set the share’s price value over the next 12 months at a high of $30.00 and a low of $19.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Synovus Financial Corp. stock is 2.00 for the next 12 months. The average price target is 17.41% above its last price level and an upside to the estimated low will see the stock lose -10.84% over that period. But an upside of 29.8% will see the stock hit the forecast high price target while mean target price for the stock is $26.00.

Insiders at the company have transacted a total of 66 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 53 of these insider trades were purchases, accounting for 321,655 shares. Insider sales of the common stock occurred on 13 occasions, with total insider shares sold totaling 183,885 shares.

The top 3 mutual fund holders in Synovus Financial Corp. are Vanguard Total Stock Market Index, iShares Core S&P Mid Cap ETF, and Vanguard Small Cap Index Fund. Vanguard Total Stock Market Index owns 4.0 million shares of the company’s stock, all valued at over $82.21 million. The company sold 31754.0 shares recently to bring their total holdings to about 2.72% of the shares outstanding. Vanguard Small Cap Index Fund sold -0.1 million shares to bring its total holdings to over 3.51 million shares at a value of $72.03 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.38% of the shares outstanding.

Shares of Synovus Financial Corp. (NYSE: SNV) opened at $20.10, down -$0.11 from a prior closing price of $20.21. However, the script later closed the day at $21.06, up 4.21%. The company’s stock has a 5-day price change of -2.08% and -4.67% over the past three months. SNV shares are trading -48.44% year to date (YTD), with the 12-month market performance down to -46.91% lower. It has a 12-month low price of $10.91 and touched a high of $40.32 over the same period. Currently, 0.74 million shares have been traded, compared to an average intraday trading volume of 1.90 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 8.01%, 3.80%, and -24.50% respectively.

Institutional ownership of Synovus Financial Corp. (NYSE: SNV) shares accounts for 79.60% of the company’s 147.31M shares outstanding. Mutual fund holders own 38.94%, while other institutional holders and individual stakeholders account for 41.74% and 1.35% respectively.

It has a market capitalization of $3.01B and a beta (3y monthly) value of 1.69. The stock’s trailing 12-month PE ratio is 6.87, while the earnings-per-share (ttm) stands at $2.94. The company has a PEG of 0.86 and the debt-to-equity ratio at 0.70. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.41% over the week and 5.10% over the month.

Analysts forecast that Synovus Financial Corp. (SNV) will achieve an EPS of $0.43 for the current quarter, $0.54 for the next quarter and $2.03 for 2021. The lowest estimate earnings-per-share for the quarter is $0.05 while analysts give the company a high EPS estimate of $0.79. Comparatively, EPS for the current quarter was $0.97 a year ago. Earnings per share for the fiscal year are expected to increase by 2.40%, and 63.64% over the next financial year. EPS should shrink at an annualized rate of 8.00% over the next five years, compared to 21.10% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 16 brokerage firm advisors rate Synovus Financial Corp. (SNV) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 10 Wall Street analysts polled rate the stock as a buy, while 4 of the 16 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the SNV, a number of firms have released research notes about the stock. RBC Capital Mkts stated their Underperform rating for the stock in a research note on July 17, 2020, with the firm’s price target at $21-$16. Wells Fargo coverage for the Synovus Financial Corp. (SNV) stock in a research note released on March 30, 2020 offered a Overweight rating with a price target of $26. Raymond James was of a view on January 27, 2020 that the stock is Outperform, while Evercore ISI gave the stock In-line rating on September 20, 2019, issuing a price target of $40- $38. Hovde Group on their part issued Outperform rating on August 27, 2019.

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