On September 20, 2023, Nordea Investment Management AB revealed in its Form 13F filing with the Securities and Exchange Commission (SEC) that it has reduced its stake in Synovus Financial Corp. (NYSE:SNV) by 2.9% during the second quarter. The investment management firm now owns 275,517 shares of the bank’s stock, having sold 8,307 shares in this period. This reduction brings Nordea Investment Management AB’s ownership to 0.19% of Synovus Financial, amounting to a value of $8,478,000.
Nordea Investment Management AB’s decision to decrease its stake in Synovus Financial comes as an intriguing development in the banking sector. While the specific reasons for this move remain undisclosed, such actions often reflect changes in investor sentiment or portfolio reallocation strategies.
In addition to reducing its ownership stake in Synovus Financial, Nordea Investment Management AB will also be paying close attention to the upcoming quarterly dividend announcement made by the financial corporation. Scheduled to be paid on October 2nd, investors who hold shares of record as of September 21st will receive a dividend of $0.38 per share. This amount translates into an annualized dividend of $1.52 and yields a respectable return of 5.20%. It is noteworthy that shareholders who sell their shares before September 20th will not be eligible for this dividend payment.
Synovus Financial maintains a payout ratio of 29.63%, indicating that it distributes approximately one-third of its earnings as dividends to shareholders while retaining the rest for reinvestment or other corporate purposes.
These recent developments surrounding Nordea Investment Management AB’s divestment from Synovus Financial and the impending dividend payment highlight notable events within both companies’ financial landscapes. Investors and industry professionals continue to monitor such occurrences closely as they search for insights into market trends and potential investment opportunities.
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Ownership Changes and Analyst Ratings Impact Synovus Financial’s Future Prospects
Synovus Financial Corp. (NYSE:SNV) has experienced some recent changes in its ownership and investment portfolio. Several institutional investors have adjusted their holdings of the stock, resulting in increased stakes for some and potential implications for the company’s future.
Pitcairn Co., for instance, raised its stake in Synovus Financial by 2.2% during the fourth quarter. The firm now owns 10,964 shares of the bank’s stock worth $412,000 after acquiring an additional 236 shares in the last quarter. Similarly, American Trust raised its stake by 2.9%, owning 9,208 shares valued at $346,000 after buying an additional 258 shares. Lazard Asset Management LLC saw a significant increase of 64.8% in its stake, now owning 809 shares worth $30,000 after acquiring an additional 318 shares.
Compass Financial Advisors LLC and Welch Group LLC also showed increased stakes of 3.8% and 0.7%, respectively. Compass Financial Advisors now owns 10,264 shares worth $316,000 after adding an extra 373 shares to their portfolio. Meanwhile, Welch Group LLC holds a total of 63,018 shares valued at $1,943,000 following an acquisition of an additional 428 shares.
These adjustments made by institutional investors indicate their confidence and interest in Synovus Financial’s prospects and potential returns on investment.
On another note, research firms have been evaluating Synovus Financial’s performance as well as offering insights into its future possibilities. Truist Financial has given the stock a “buy” rating with a price target increase from $34 to $37 per share. Additionally, DA Davidson boosted its price target from $34 to $37 per share.
Royal Bank of Canada reiterated an “outperform” rating with a price objective set at $38 per share on Synovus Financial. Meanwhile, Wells Fargo & Company decreased its price target from $50 to $45 per share. However, they maintained an “overweight” rating for the company. With four analysts holding a neutral view and six assigning a buy rating, Bloomberg’s data indicates a consensus rating of “Moderate Buy.” The average price target stands at $37.30.
As of September 20, 2023, Synovus Financial stock opened at $29.21 with a market capitalization of $4.27 billion. It has a PE ratio of 5.69 and a price-to-earnings growth ratio of 2.34, suggesting that it may be undervalued compared to its growth potential. The stock exhibits a beta of 1.39, indicating higher volatility compared to the overall market.
Within the past year, Synovus Financial’s share price fluctuated between $25.19 and $44.91, emphasizing the company’s market sensitivity and potential for investors seeking short-term gains or losses.
The company boasts favorable financial ratios with a quick ratio of 0.92 and current ratio of 0.93, indicating solid liquidity positions in meeting short-term obligations. With a debt-to-equity ratio of 0.94, Synovus Financial demonstrates prudent financial management by keeping its borrowing levels relatively low.
Synovus Financial recently reported its quarterly earnings results on July 19th, exceeding expectations with an earnings per share (EPS) of $1.16 compared to the consensus estimate of $1.14 EPS – a positive deviation of $0.02 per share.
