TD SYNNEX Corporation (NYSE: SNX) achieved a new 52-week high on January 8, 2024, with its share price reaching $170.3850, a notable increase from the previous closing price of $164.19. The stock traded at a peak of $169.98 during the session, with a trading volume of 25,281 shares. This surge has prompted renewed interest from investors and analysts alike, raising questions about the stock’s future performance.
Several research firms have recently updated their ratings and price targets for TD SYNNEX. UBS Group increased its price target from $187.00 to $193.00, maintaining a “buy” rating. Similarly, Wall Street Zen upgraded its recommendation from “hold” to “buy.” In contrast, Barclays lowered its price target from $164.00 to $163.00 while keeping an “equal weight” rating. Morgan Stanley also adjusted its forecast, reducing the price target from $177.00 to $172.00 and affirming an “overweight” rating.
In total, nine analysts have rated TD SYNNEX as a buy, while three have issued hold ratings. According to data from MarketBeat.com, the consensus rating is a “Moderate Buy” with a price target of $170.64.
Recent Earnings and Dividend Announcement
TD SYNNEX reported its quarterly earnings on January 8, revealing earnings per share of $3.83, surpassing analyst expectations of $3.68 by $0.15. The company recorded a net margin of 1.32% and a return on equity of 12.60%. Revenue for the quarter reached $17.38 billion, significantly exceeding analyst estimates of $15.46 billion. This represents a year-over-year revenue increase of 9.7%, compared to $3.09 EPS in the same period last year.
Furthermore, TD SYNNEX announced a quarterly dividend of $0.48, payable on January 30, 2024, to shareholders who were on record as of January 16. This marks an increase from the prior dividend of $0.44, resulting in an annualized dividend of $1.92 and a yield of 1.1%. The company’s current payout ratio stands at 19.26%, indicating a sustainable dividend strategy.
Insider Transactions and Institutional Activity
In addition to its strong financial performance, TD SYNNEX has seen recent insider activity. Director Richard T. Hume sold 23,365 shares on February 2 at an average price of $160.63, totaling approximately $3.75 million. Following this transaction, Hume retains 42,515 shares, valued at around $6.83 million. Another director, Merline Saintil, sold 168 shares on December 4 at an average price of $153.38, amounting to about $25,768. Collectively, insiders have sold 72,016 shares in the last ninety days, valued at approximately $11.49 million, with insiders owning 1.00% of the company’s stock.
Institutional investors have also taken notice of TD SYNNEX. Recently, Dorato Capital Management acquired a new position, while Ossiam increased its holdings by 84.3%. Other firms, including Measured Wealth Private Client Group LLC and Brown Brothers Harriman & Co., have also purchased shares, contributing to the fact that 84% of the stock is now held by hedge funds and institutional investors.
TD SYNNEX plays a significant role in the information technology industry as a leading global distributor and solutions aggregator. Formed in September 2021 through the merger of Tech Data and SYNNEX Corporation, the company offers a wide array of products and services, including hardware, software, cloud solutions, and IT infrastructure support. By partnering with vendors and system integrators, TD SYNNEX continues to strengthen its position in diverse market segments, catering to commercial enterprises, public sector organizations, and retail operations.
As the company navigates its growth trajectory and responds to market dynamics, investor interest remains high, making TD SYNNEX a noteworthy player in the technology distribution landscape.
