Synovus Financial (NYSE:SNV) Shares Gap Down Following Weak Earnings

Shares of Synovus Financial Corp. (NYSE:SNV) gapped down prior to trading on Thursday following a dissappointing 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.

The bank reported $0.79 earnings per share for the quarter, missing the consensus estimate of $0.99 by ($0.20). Synovus Financial had a net margin of 13.29% and a return on equity of 13.08%. The business had revenue of $537.73 million during the quarter, compared to the consensus estimate of $547.62 million. During the same period in the prior year, the company posted $1.33 earnings per share. The firm’s revenue was down 12.4% compared to the same quarter last year.

Synovus Financial Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, April 1st. Investors of record on Thursday, March 21st were given a $0.38 dividend. The ex-dividend date was Wednesday, March 20th. This represents a $1.52 annualized dividend and a yield of 4.35%. Synovus Financial’s dividend payout ratio (DPR) is currently 52.05%.

Wall Street Analysts Forecast Growth

SNV has been the subject of several research reports. Truist Financial raised their target price on Synovus Financial from $42.00 to $45.00 and gave the stock a “buy” rating in a research report on Monday, April 1st. Wells Fargo & Company reduced their target price on Synovus Financial from $42.00 to $40.00 and set an “overweight” rating for the company in a research report on Friday. Raymond James cut Synovus Financial from a “strong-buy” rating to a “market perform” rating in a research report on Thursday. Bank of America reduced their target price on Synovus Financial from $44.00 to $40.00 and set a “buy” rating for the company in a research report on Friday. Finally, Barclays reduced their target price on Synovus Financial from $42.00 to $39.00 and set an “equal weight” rating for the company in a research report on Friday. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and ten have issued a buy rating to the company. According to MarketBeat, Synovus Financial presently has a consensus rating of “Moderate Buy” and a consensus price target of $41.53.

Insider Activity

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

Institutional Trading of Synovus Financial

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. State of Michigan Retirement System increased its position in Synovus Financial by 2.3% in the first quarter. State of Michigan Retirement System now owns 35,904 shares of the bank’s stock worth $1,438,000 after purchasing an additional 800 shares during the period. Asio Capital LLC boosted its holdings in Synovus Financial by 1.1% during the first quarter. Asio Capital LLC now owns 127,127 shares of the bank’s stock worth $5,141,000 after buying an additional 1,428 shares during the last quarter. Cooper Financial Group bought a new position in Synovus Financial during the first quarter worth about $203,000. Mather Group LLC. bought a new position in Synovus Financial during the first quarter worth about $144,000. Finally, GAMMA Investing LLC boosted its holdings in Synovus Financial by 22.4% during the first quarter. GAMMA Investing LLC now owns 2,995 shares of the bank’s stock worth $120,000 after buying an additional 548 shares during the last quarter. 83.85% of the stock is currently owned by institutional investors and hedge funds.

Synovus Financial Stock Performance

The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 0.42. The stock has a market cap of $5.11 billion, a P/E ratio of 11.96, a PEG ratio of 3.93 and a beta of 1.40. The stock has a fifty day simple moving average of $37.91 and a 200-day simple moving average of $34.52.

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.