TD SYNNEX Corporation (NYSE:SNX) reached a new 52-week high on January 9, 2024, with shares climbing to an impressive $170.39. The stock saw significant trading activity, with a volume of 25,281 shares traded, closing up from the previous day’s close of $164.19. This surge in share price follows a series of analyst upgrades, indicating strong investor confidence in the company.
Analyst Upgrades Fuel Investor Confidence
Recent assessments from various research firms have bolstered TD SYNNEX’s standing in the market. UBS Group raised its price target for the company from $187.00 to $193.00 while maintaining a “buy” rating. Similarly, Wall Street Zen upgraded its rating from “hold” to “buy.” Conversely, Barclays adjusted its price objective downward from $164.00 to $163.00, assigning an “equal weight” rating. Morgan Stanley also lowered its target from $177.00 to $172.00 but retained an “overweight” rating.
As per data from MarketBeat.com, a collective of nine analysts have given the stock a “buy” rating, while three recommend holding it. The consensus rating stands at “Moderate Buy” with a price target of $170.64, reflecting a positive outlook for the company’s future.
Strong Earnings Report and Increased Dividend
TD SYNNEX recently released its quarterly earnings on January 8, 2024, reporting earnings per share (EPS) of $3.83. This figure exceeded analysts’ expectations of $3.68 by $0.15. The company’s revenue reached $17.38 billion, significantly outperforming the forecast of $15.46 billion, and marked a 9.7% increase year-over-year. The net margin stood at 1.32%, with a return on equity of 12.60%.
Adding to the positive news, TD SYNNEX announced a quarterly dividend of $0.48, payable on January 30, 2024, to shareholders of record as of January 16, 2024. This marks an increase from the previous dividend of $0.44, representing an annualized dividend of $1.92 and a yield of approximately 1.1%. The company’s current payout ratio is 19.26%, indicating a solid commitment to returning value to shareholders.
Insider Transactions and Institutional Activity
In recent insider transactions, Director Richard T. Hume sold 23,365 shares on February 2, 2024, at an average price of $160.63, totaling approximately $3.75 million. Following this sale, Hume retains 42,515 shares valued at around $6.83 million, reflecting a 35.47% decrease in his holdings. Another director, Merline Saintil, sold 168 shares in December 2023 for about $25,767.84.
Over the past ninety days, insiders have sold 72,016 shares of the company, valued at approximately $11.49 million. Insiders currently hold about 1.00% of the company’s stock.
Institutional interest in TD SYNNEX has also grown. Notable transactions include Dorato Capital Management acquiring a new position worth approximately $27,000 in the fourth quarter. Ossiam increased its holdings by 84.3%, now owning 164 shares valued at $27,000 after purchasing an additional 75 shares. A variety of other hedge funds and institutional investors have also made significant adjustments to their positions in the stock.
With 84% of shares owned by institutional investors, TD SYNNEX demonstrates strong backing from the financial community, further enhancing its stability and growth potential.
Company Overview
TD SYNNEX is a prominent global distributor and solutions aggregator for the information technology industry. Formed in September 2021 through the merger of Tech Data and SYNNEX Corporation, the company offers a vast array of products and services, including hardware, software, cloud solutions, and technology services. TD SYNNEX collaborates with vendors, resellers, and system integrators to support IT infrastructures across diverse sectors, including commercial enterprises and public organizations.
As the company continues to thrive, its recent performance and outlook suggest it remains a compelling option for investors looking to capitalize on growth in the technology sector.
