Syntel, Inc. (SYNT) Upgraded by Zacks Investment Research to Hold

Zacks Investment Research upgraded shares of Syntel, Inc. (NASDAQ:SYNT) from a sell rating to a hold rating in a research report report published on Tuesday, July 18th.

According to Zacks, “Syntel is a worldwide provider of advanced technology services to Fortune 1000 companies, as well as to government entities. Their service offerings are grouped into three segments: e-Business, Application Outsourcing, and Teamsourcing. E-Business consists of practice areas in Web Solutions, Customer Relationship Management, Data Warehousing/Business Intelligence, and Enterprise Application Outsourcing services. “

A number of other research analysts also recently commented on SYNT. Needham & Company LLC dropped their price objective on Syntel from $23.00 to $21.00 and set a buy rating on the stock in a report on Friday, April 21st. Cowen and Company restated a market perform rating and set a $18.00 price target (down previously from $20.00) on shares of Syntel in a research note on Sunday, April 23rd. ValuEngine downgraded Syntel from a buy rating to a hold rating in a research note on Friday, June 2nd. Finally, BidaskClub upgraded Syntel from a strong sell rating to a sell rating in a research note on Wednesday, June 28th. Three 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’s stock. The stock currently has an average rating of Hold and a consensus target price of $26.09.

Syntel (NASDAQ:SYNT) traded down 1.22% during trading on Tuesday, reaching $19.49. The company’s stock had a trading volume of 417,418 shares. The stock has a 50 day moving average price of $17.14 and a 200 day moving average price of $18.19. Syntel has a 1-year low of $15.82 and a 1-year high of $46.95. The stock’s market capitalization is $1.63 billion.

Syntel (NASDAQ:SYNT) last posted its quarterly earnings results on Thursday, July 20th. The information technology services provider reported $0.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.40 by $0.04. Syntel had a negative return on equity of 97.99% and a negative net margin of 10.11%. The company had revenue of $226.81 million for the quarter. During the same period in the prior year, the business earned $0.70 EPS. Syntel’s revenue for the quarter was down 7.7% on a year-over-year basis. Analysts anticipate that Syntel will post $1.72 earnings per share for the current fiscal year.

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Syntel declared that its board has authorized a stock repurchase program on Thursday, July 20th that authorizes the company to buyback $60.00 million in 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 programs are usually a sign that the company’s board believes its stock is undervalued.

In related news, insider Murlidhar Reddy purchased 1,986 shares of the company’s stock in a transaction on Thursday, May 4th. The stock was bought at an average price of $17.83 per share, with a total value of $35,410.38. Following the completion of the transaction, the insider now owns 34,079 shares of the company’s stock, valued at approximately $607,628.57. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Anil Jain acquired 3,775 shares of the stock in a transaction dated Wednesday, May 3rd. The stock was acquired at an average cost of $17.30 per share, with a total value of $65,307.50. Following the transaction, the insider now owns 21,715 shares of the company’s stock, valued at $375,669.50. The disclosure for this purchase can be found here. Company insiders own 61.10% of the company’s stock.

Hedge funds and other institutional investors have recently modified their holdings of the company. Eqis Capital Management Inc. boosted its position in shares of Syntel by 4.9% in the first quarter. Eqis Capital Management Inc. now owns 12,259 shares of the information technology services provider’s stock worth $206,000 after buying an additional 570 shares in the last quarter. HPM Partners LLC acquired a new position in Syntel during the first quarter valued at approximately $219,000. Fox Run Management L.L.C. acquired a new position in Syntel during the second quarter valued at approximately $309,000. Laurion Capital Management LP boosted its position in Syntel by 11.3% in the first quarter. Laurion Capital Management LP now owns 18,926 shares of the information technology services provider’s stock valued at $319,000 after buying an additional 1,926 shares during the period. Finally, Hikari Power Ltd acquired a new position in Syntel during the first quarter valued at approximately $332,000. Institutional investors own 33.54% of the company’s stock.

About Syntel

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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