Trade-Ideas LLC identified Synaptics ( SYNA) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Synaptics as such a stock due to the following factors:

  • SYNA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.5 million.
  • SYNA has traded 89,931 shares today.
  • SYNA is down 3% today.
  • SYNA was up 5.3% yesterday.

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More details on SYNA:

Synaptics Incorporated develops, markets, and sells intuitive human interface solutions for electronic devices and products worldwide. SYNA has a PE ratio of 28. Currently there are 8 analysts that rate Synaptics a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Synaptics has been 671,400 shares per day over the past 30 days. Synaptics has a market cap of $2.8 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.25 and a short float of 14.7% with 9.95 days to cover. Shares are up 17.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Synaptics as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • SYNA's very impressive revenue growth greatly exceeded the industry average of 9.7%. Since the same quarter one year prior, revenues leaped by 66.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.50, which illustrates the ability to avoid short-term cash problems.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, SYNAPTICS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • SYNAPTICS INC's earnings per share declined by 8.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SYNAPTICS INC increased its bottom line by earning $2.84 versus $1.25 in the prior year. This year, the market expects an improvement in earnings ($7.04 versus $2.84).

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