Syntel, Inc. (NASDAQ:SYNT) shares saw unusually-strong trading volume on Thursday following a better than expected earnings announcement. Approximately 2,504,929 shares traded hands during trading, an increase of 490% from the previous session’s volume of 424,795 shares.The stock last traded at $18.59 and had previously closed at $16.86.
The information technology services provider reported $0.44 earnings per share for the quarter, beating analysts’ consensus estimates of $0.40 by $0.04. The firm had revenue of $226.81 million for the quarter. Syntel had a negative net margin of 10.11% and a negative return on equity of 110.72%. The company’s revenue for the quarter was down 7.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.70 EPS.
Syntel announced that its Board of Directors has authorized a share repurchase plan on Thursday, July 20th that authorizes the company to buyback $60.00 million in outstanding shares. This buyback authorization authorizes the information technology services provider to reacquire up to 3.9% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s management believes its stock is undervalued.
A number of equities research analysts have recently weighed in on SYNT shares. Cantor Fitzgerald reaffirmed a “hold” rating and set a $16.00 target price on shares of Syntel in a research note on Thursday, July 20th. ValuEngine lowered shares of Syntel from a “buy” rating to a “hold” rating in a research note on Friday, June 2nd. Cowen and Company reissued a “market perform” rating and set a $18.00 price objective (down previously from $20.00) on shares of Syntel in a research note on Sunday, April 23rd. BidaskClub raised shares of Syntel from a “strong sell” rating to a “sell” rating in a research note on Wednesday, June 28th. Finally, Needham & Company LLC dropped their price objective on shares of Syntel from $23.00 to $21.00 and set a “buy” rating on the stock in a research note on Friday, April 21st. Three research analysts have rated the stock with a sell rating, six have issued a hold rating and five have assigned a buy rating to the company. Syntel presently has an average rating of “Hold” and a consensus target price of $26.09.
Several hedge funds and other institutional investors have recently modified their holdings of the company. Norges Bank purchased a new position in shares of Syntel during the fourth quarter valued at about $11,015,000. Sather Financial Group Inc purchased a new position in shares of Syntel during the second quarter valued at about $8,400,000. IPG Investment Advisors LLC increased its position in shares of Syntel by 393.7% in the first quarter. IPG Investment Advisors LLC now owns 527,465 shares of the information technology services provider’s stock valued at $8,877,000 after buying an additional 420,625 shares in the last quarter. Dimensional Fund Advisors LP increased its position in shares of Syntel by 75.4% in the second quarter. Dimensional Fund Advisors LP now owns 923,431 shares of the information technology services provider’s stock valued at $15,661,000 after buying an additional 397,034 shares in the last quarter. Finally, Sprott Inc. purchased a new position in shares of Syntel during the first quarter valued at about $5,386,000. Hedge funds and other institutional investors own 32.85% of the company’s stock.
The stock’s market cap is $1.55 billion. The stock has a 50-day moving average of $17.89 and a 200 day moving average of $17.95.
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Syntel Company Profile
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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