Healthy Upside Potential: Syneos Health Inc. (SYNH)

Syneos Health Inc. (NASDAQ: SYNH) stock jumped 2.42% on Friday to $66.78 against a previous-day closing price of $65.20. With 2.08 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.57 million shares. During the session, the Diagnostics & Research company that operates in wider Healthcare sector, reached to the highest price of $66.88 whereas the lowest price it dropped to was $64.20. The 52-week range on SYNH shows that it touched its highest point at $104.18 and its lowest point at $62.28 during that stretch. It currently has a 1-year price target of $91.60. Beta for the stock currently stands at 1.70.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SYNH was down-trending over the past week, with a drop of -13.68%, but this was down by -8.77% over a month. Three-month performance dropped to -7.29% while six-month performance fell -26.10%. The stock lost -24.20% in the past year, while it has lost -34.96% so far this year. A look at the trailing 12-month EPS for SYNH yields 2.31 with Next year EPS estimates of 5.68. For the next quarter, that number is 1.20. This implies an EPS growth rate of 22.30% for this year and 11.01% for next year. EPS is expected to grow by 12.92% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 2.00%.

Float and Shares Shorts:

At present, 103.67 million SYNH shares are outstanding with a float of 61.25 million shares on hand for trading. On Jul 14, 2022, short shares totaled 2.15 million, which was 2.10% higher than short shares on Jun 14, 2022. In addition to Ms. Michelle Keefe as the firm’s CEO & Director, Mr. Jason M. Meggs serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 98.98% of SYNH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 61.97% of SYNH, in contrast to 34.96% held by mutual funds. Shares owned by individuals account for 11.87%. As the largest shareholder in SYNH with 9.35% of the stake, The Vanguard Group, Inc. holds 9,593,897 shares worth 9,593,897. A second-largest stockholder of SYNH, Wellington Management Co. LLP, holds 9,430,935 shares, controlling over 9.19% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in SYNH, holding 9,206,543 shares or 8.98% stake. With a 2.95% stake in SYNH, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 3,029,551 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.88% of SYNH stock, is the second-largest Mutual Fund holder. It holds 2,957,347 shares valued at 211.98 million. Vanguard Small Cap Index Fund holds 2.53% of the stake in SYNH, owning 2,591,764 shares worth 185.78 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, SYNH reported revenue of $1.34B and operating income of $89.45M. Over the past year, revenue came in at $5.34B while operating income stood at $402.16M. It generated $46.18M net income for the quarter, which came to $242.28M over the last twelve months. The EBITDA in the recently reported quarter was $148.85M and diluted EPS was $0.44. EBITDA for the full year was $673.78M.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SYNH since 13 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SYNH analysts setting a high price target of $115.00 and a low target of $73.00, the average target price over the next 12 months is $88.78. Based on these targets, SYNH could surge 72.21% to reach the target high and rise by 9.31% to reach the target low. Reaching the average price target will result in a growth of 32.94% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SYNH will report FY 2022 earnings on 02/16/2023. Analysts have provided yearly estimates in a range of $5.20 being high and $4.95 being low. For SYNH, this leads to a yearly average estimate of $5.09. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Syneos Health Inc. surprised analysts by $0.05 when it reported $1.25 EPS against a consensus estimate of $1.20. The surprise factor in the prior quarter was $0.06. Based on analyst estimates, the high estimate for the next quarter is $1.40 and the low estimate is $1.25. The average estimate for the next quarter is thus $1.35.

Summary of Insider Activity:

Insiders traded SYNH stock several times over the past three months with 14 Buys and 10 Sells. In these transactions, 72,582 shares were bought while 43,202 shares were sold. The number of buy transactions has increased to 36 while that of sell transactions has risen to 38 over the past year. The total number of shares bought during that period was 229,527 while 152,462 shares were sold.

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