SAN JOSE, CA – In a recent transaction, Vikram Gupta, the Senior Vice President & General Manager, IoT/Processors and Chief Product Officer of Synaptics Inc (NASDAQ:SYNA), sold 258 shares of company stock, according to a regulatory filing with the Securities and Exchange Commission. The shares were sold on June 13, 2024, for a price of $95.1 each, totaling approximately $24,535.
The transaction was conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to set up a trading schedule in advance to avoid accusations of insider trading. Such plans are often used by corporate executives to sell a predetermined number of shares at a predetermined time.
Following the sale, Gupta still owns a substantial number of Synaptics shares, with the post-transaction documents indicating a remaining total of 31,094 shares. The sale represents a small fraction of his overall holdings in the company, suggesting a routine financial move rather than a shift in his long-term confidence in the company's prospects.
Synaptics Inc., headquartered in San Jose, California, is a leading company in the semiconductor industry, specializing in human interface solutions that enable a better user experience in a wide range of electronic devices.
The details of the transaction were made public through an SEC Form 4 filing, which is a mandatory disclosure for insiders' transactions in company securities. These filings provide transparency for investors and help maintain fair markets.
Investors often keep an eye on insider transactions as they can provide insights into executives' perspectives on the company's future. However, it is important to consider that selling shares does not necessarily indicate a negative outlook, as executives may have various personal financial strategies or portfolio diversification goals.
Synaptics has not made any official statement regarding this recent transaction by Gupta, and it remains part of the regular financial activity that occurs within publicly traded companies.
In other recent news, Synaptics Incorporated has made notable strides in its operations. The company announced the appointment of Ken Rizvi as its new Chief Financial Officer, effective from July 15. Rizvi, who brings over two decades of experience in the semiconductor industry, is expected to oversee Synaptics' global finance operations, including accounting, corporate development, and investor relations. This strategic move is part of Synaptics' ongoing efforts to expand its presence in the Internet of Things (IoT) connectivity and processor solutions market.
In financial developments, Synaptics reported its third-quarter results for the fiscal year 2024, with a revenue of $237.3 million. Although this represents a 27% decrease year-over-year, the company remains optimistic about its Core IoT business. It forecasts double-digit sequential revenue growth in the next quarter, expecting revenue to range from $230 million to $260 million.
The company also anticipates a GAAP gross margin of 44.5% to 46.5% and a non-GAAP gross margin of 52.5% to 54.5%. Despite facing a decline in demand, particularly in wireless revenue within the Core IoT sector, Synaptics is confident in reaching $200 million in revenue for the wireless portion of their Core IoT business. These recent developments underscore Synaptics' commitment to innovation and growth in a dynamic market environment.
InvestingPro Insights
In light of the recent insider transaction at Synaptics Inc (NASDAQ:SYNA), where Senior Vice President Vikram Gupta sold a portion of his shares, investors may be seeking additional context on the company's financial health and market performance. Here are some key metrics and insights from InvestingPro that could shed light on the situation:
InvestingPro Data:
- Market Cap (Adjusted): $3.62 billion USD
- P/E Ratio (Adjusted) last twelve months as of Q3 2024: -36.27
- Revenue Growth last twelve months as of Q3 2024: -41.45%
InvestingPro Tips:
1. Analysts have revised their earnings downwards for the upcoming period, which may be influencing insider trading decisions.
2. Despite the lack of profitability over the last twelve months, analysts predict the company will be profitable this year, indicating potential for future growth.
For investors looking for deeper analysis and more InvestingPro Tips related to Synaptics Inc, there are additional insights available at https://www.investing.com/pro/SYNA. These tips could provide valuable information for making informed decisions, especially in light of insider activities.
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