Syntel, Inc. (SYNT) Sees Unusually-High Trading Volume on Better-Than-Expected Earnings
Shares of Syntel, Inc. (NASDAQ:SYNT) saw an uptick in trading volume on Tuesday following a better than expected earnings announcement. 3,549,582 shares traded hands during mid-day trading, an increase of 840% from the previous session’s volume of 377,616 shares.The stock last traded at $24.30 and had previously closed at $19.10.
The information technology services provider reported $0.58 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.42 by $0.16. The business had revenue of $231.30 million for the quarter, compared to analysts’ expectations of $217.37 million. During the same quarter last year, the business posted $0.63 earnings per share. The business’s revenue was down 4.1% compared to the same quarter last year.
Syntel declared that its board has authorized a stock buyback plan on Thursday, July 20th that allows the company to buyback $60.00 million in shares. This buyback authorization allows the information technology services provider to repurchase up to 3.9% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.
Several research firms have weighed in on SYNT. Zacks Investment Research upgraded shares of Syntel from a “hold” rating to a “buy” rating and set a $22.00 target price for the company in a report on Tuesday, July 25th. SunTrust Banks, Inc. restated a “hold” rating and set a $20.00 target price on shares of Syntel in a report on Tuesday. Maxim Group restated a “hold” rating on shares of Syntel in a report on Thursday, July 20th. ValuEngine upgraded shares of Syntel from a “hold” rating to a “buy” rating in a report on Thursday, July 13th. Finally, Robert W. Baird restated a “hold” rating and set a $20.00 target price on shares of Syntel in a report on Wednesday, October 4th. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and four have assigned a buy rating to the stock. Syntel presently has a consensus rating of “Hold” and an average target price of $21.10.
Hedge funds and other institutional investors have recently modified their holdings of the company. Swiss National Bank grew its holdings in shares of Syntel by 5.5% during the first quarter. Swiss National Bank now owns 55,300 shares of the information technology services provider’s stock worth $931,000 after buying an additional 2,900 shares in the last quarter. AXA purchased a new stake in shares of Syntel during the second quarter worth about $1,046,000. Freestone Capital Holdings LLC grew its holdings in shares of Syntel by 6.7% during the second quarter. Freestone Capital Holdings LLC now owns 735,111 shares of the information technology services provider’s stock worth $12,467,000 after buying an additional 46,174 shares in the last quarter. Prudential Financial Inc. purchased a new stake in shares of Syntel during the second quarter worth about $1,082,000. Finally, SG Americas Securities LLC purchased a new stake in shares of Syntel during the first quarter worth about $700,000. Institutional investors and hedge funds own 34.70% of the company’s stock.
The stock’s market capitalization is $2.03 billion. The company has a 50 day moving average price of $18.88 and a 200 day moving average price of $17.92.
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Syntel, Inc (Syntel) is a global provider of digital transformation, information technology (IT) and knowledge process outsourcing (KPO) services. The Company operates through five segments: Banking and Financial Services, Healthcare and Life Sciences, Insurance, Manufacturing, and Retail, Logistics and Telecom.
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