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

Shares of Synovus Financial Corp. (NYSE:SNV) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. 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 return on equity of 14.95% and a net margin of 15.74%. The company had revenue of $537.73 million during the quarter, compared to analyst estimates of $547.62 million. During the same period last year, the company posted $1.33 earnings per share. The company’s revenue was down 12.4% compared to the same quarter last year.

Synovus Financial Announces Dividend

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

Wall Street Analysts Forecast Growth

Several research firms have commented on SNV. DA Davidson reissued a “buy” rating on shares of Synovus Financial in a research report on Monday, January 15th. JPMorgan Chase & Co. increased their target price on shares of Synovus Financial from $46.00 to $50.00 and gave the stock an “overweight” rating in a research report on Thursday, April 4th. Raymond James downgraded shares of Synovus Financial from a “strong-buy” rating to a “market perform” rating in a research report on Thursday. Wells Fargo & Company upped their price target 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. Finally, Evercore ISI upped their price target 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. One research analyst has rated the stock with a sell rating, six have given a hold rating and nine have given a buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $41.50.

Insider Activity at Synovus Financial

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

Institutional Investors Weigh In On Synovus Financial

A number of institutional investors have recently added to or reduced their stakes in SNV. Raymond James Financial Services Advisors Inc. boosted its holdings in Synovus Financial by 10.4% during the first quarter. Raymond James Financial Services Advisors Inc. now owns 14,877 shares of the bank’s stock valued at $729,000 after purchasing an additional 1,401 shares in the last quarter. Private Advisor Group LLC bought a new position in shares of Synovus Financial in the first quarter valued at approximately $419,000. PNC Financial Services Group Inc. raised its stake in shares of Synovus Financial by 10.8% in the first quarter. PNC Financial Services Group Inc. now owns 11,420 shares of the bank’s stock valued at $561,000 after acquiring an additional 1,109 shares during the last quarter. Great West Life Assurance Co. Can raised its stake in shares of Synovus Financial by 10.3% in the first quarter. Great West Life Assurance Co. Can now owns 82,348 shares of the bank’s stock valued at $4,147,000 after acquiring an additional 7,682 shares during the last quarter. Finally, Canada Pension Plan Investment Board bought a new position in shares of Synovus Financial in the first quarter valued at approximately $74,000. 83.85% of the stock is owned by institutional investors and hedge funds.

Synovus Financial Stock Down 7.4 %

The business’s 50 day moving average price is $37.93 and its 200-day moving average price is $34.46. 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 market cap of $4.97 billion, a P/E ratio of 9.80, a PEG 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.