TD SYNNEX Corporation (NYSE: SNX) achieved a new 52-week high on January 9, 2024, with its share price reaching $170.38. The stock experienced trading volumes of 25,281 shares, significantly up from its previous close of $164.19. This surge comes in the wake of the company announcing strong quarterly earnings, exceeding analysts’ expectations and indicating robust financial health.
Analyst Upgrades and Market Reactions
Several analysts have recently revised their ratings for TD SYNNEX, reflecting increased investor confidence in the company’s potential. UBS Group raised its price target from $187.00 to $193.00 while maintaining a “buy” rating. Meanwhile, Barclays adjusted its price target down slightly from $164.00 to $163.00 but kept an “equal weight” rating. Morgan Stanley also lowered its target, moving from $177.00 to $172.00, though it maintained an “overweight” rating.
Data from MarketBeat.com reveals that out of twelve analysts, nine have rated the stock as a buy and three have given it a hold rating, leading to an overall consensus rating of “Moderate Buy.” The average price target across these analysts stands at $170.64, suggesting that analysts remain optimistic about TD SYNNEX’s performance in the coming months.
Strong Earnings Report and Dividend Increase
On January 8, 2024, TD SYNNEX released its quarterly earnings report, revealing earnings per share of $3.83. This figure surpassed the consensus estimate of $3.68 by $0.15. The company reported a net margin of 1.32% and a return on equity of 12.60%. Revenue for the quarter reached $17.38 billion, significantly higher than the anticipated $15.46 billion, marking a year-over-year increase of 9.7%.
With this strong performance, TD SYNNEX also announced an increase in its quarterly dividend, which was paid on January 30, 2024. Shareholders received a dividend of $0.48 per share, up from the previous $0.44. This increase translates to a $1.92 annualized dividend, offering a yield of approximately 1.1%. The company’s current payout ratio stands at 19.26%, indicating a healthy balance between profit reinvestment and shareholder returns.
Insider Transactions and Institutional Investments
In addition to its financial achievements, TD SYNNEX has seen insider trading activity. On February 2, 2024, Director Richard T. Hume sold 23,365 shares at an average price of $160.63, totaling approximately $3.75 million. After this sale, Hume retains 42,515 shares, valued at around $6.83 million. Another director, Merline Saintil, sold 168 shares on December 4, 2023, at an average price of $153.38, bringing her total holdings to 7,162 shares worth about $1.1 million.
In the institutional investment space, several hedge funds have recently adjusted their positions in TD SYNNEX. For instance, Dorato Capital Management acquired a new stake in the company, while Ossiam increased its holdings by 84.3% during the third quarter. Notably, 84% of the company’s stock is owned by institutional investors, demonstrating strong institutional confidence.
Outlook for TD SYNNEX
Looking ahead, TD SYNNEX has set its guidance for Q1 2026 at earnings per share between $3.000 and $3.500. Analysts project that the company will report earnings of $11.88 per share for the current year, reflecting continued growth potential.
As a leading global distributor and solutions aggregator for the information technology sector, TD SYNNEX’s strong performance and positive market outlook make it a company to watch closely in the coming months.
