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 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 trading hands.

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

Synovus Financial Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, April 1st. Shareholders of record on Thursday, March 21st were issued a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a dividend yield of 4.48%. The ex-dividend date was Wednesday, March 20th. Synovus Financial’s dividend payout ratio (DPR) is presently 43.93%.

Wall Street Analyst Weigh In

Several research analysts have commented on SNV shares. Evercore ISI increased their price objective on shares of Synovus Financial from $40.00 to $42.00 and gave the company an “in-line” rating in a report on Thursday, March 28th. Barclays started coverage on shares of Synovus Financial in a report on Friday, March 8th. They set an “equal weight” rating and a $42.00 price objective for the company. Wells Fargo & Company increased their price objective on shares of Synovus Financial from $40.00 to $42.00 and gave the company an “overweight” rating in a report on Wednesday, April 10th. DA Davidson reissued a “buy” rating on shares of Synovus Financial in a report on Monday, January 15th. Finally, StockNews.com cut shares of Synovus Financial from a “hold” rating to a “sell” rating in a research report on Thursday, February 15th. One analyst has rated the stock with a sell rating, six have issued a hold rating and nine have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $41.50.

Insider Buying and Selling

In related 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 value of $180,394.02. Following the sale, the director now directly owns 33,144 shares of the company’s stock, valued at approximately $1,280,021.28. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In related 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 value of $180,394.02. Following the sale, the director now directly owns 33,144 shares of the company’s stock, valued at approximately $1,280,021.28. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Thomas T. Dierdorff sold 2,045 shares of the stock in a transaction dated Tuesday, January 23rd. The stock was sold at an average price of $38.23, for a total transaction 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 disclosure for this sale can be found here. 0.81% of the stock is currently owned by corporate insiders.

Institutional Trading of Synovus Financial

Several institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in shares of Synovus Financial by 1.1% during the third quarter. Vanguard Group Inc. now owns 14,996,954 shares of the bank’s stock valued at $562,536,000 after acquiring an additional 170,332 shares in the last quarter. BlackRock Inc. raised its stake in shares of Synovus Financial by 1.6% during the first quarter. BlackRock Inc. now owns 14,098,433 shares of the bank’s stock valued at $434,655,000 after acquiring an additional 228,708 shares in the last quarter. FMR LLC raised its stake in shares of Synovus Financial by 10.0% during the third quarter. FMR LLC now owns 10,702,534 shares of the bank’s stock valued at $297,530,000 after acquiring an additional 977,155 shares in the last quarter. Wellington Management Group LLP raised its stake in shares of Synovus Financial by 56.9% during the fourth quarter. Wellington Management Group LLP now owns 7,838,693 shares of the bank’s stock valued at $295,127,000 after acquiring an additional 2,843,488 shares in the last quarter. Finally, State Street Corp raised its stake in shares of Synovus Financial by 15.7% during the first quarter. State Street Corp now owns 6,937,880 shares of the bank’s stock valued at $216,502,000 after acquiring an additional 941,244 shares in the last quarter. Institutional investors own 83.85% of the company’s stock.

Synovus Financial Stock Down 7.4 %

The company’s 50 day moving average price is $37.93 and its two-hundred day moving average price is $34.46. 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 $4.97 billion, a P/E ratio of 9.80, a P/E/G ratio of 3.93 and a beta of 1.40.

About Synovus Financial

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.