Is Now the Time to Invest in Synovus Financial Corp. (SNV)?


Many stocks have been testing new highs in 2020, and one of the most notable is Synovus Financial Corp. (SNV). Currently, SNV is trading at $25.79 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $25.81.

To add more color to this target, the company’s high over the last year is $40.32 and the low is $10.91. Over the last 52 weeks, SNV is down -36.04% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, SNV reported a profit of $373.26 million. Synovus Financial Corp. also saw revenues increase to $483.9 million. In addition, SNV has free cash flow of $12.82 million as of 03-2020.

SNV booked profit margins of 22.40%, its Return on Equity (ROE) is 10.20%, and its Return on Assets is 0.90%. All told, it is clear that, SNV needs to be on your watchlist.

About Synovus Financial Corp.

If readers are unfamiliar, Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides various financial products and services. It offers integrated financial services, including commercial and retail banking, financial management, insurance, and mortgage services. The company’s commercial banking services comprise treasury management, asset management, capital market, and institutional trust services, as well as commercial, financial, and real estate loans. Its retail banking services consist of accepting customary types of demand and savings deposits accounts; mortgage, installment, and other consumer loans; investment and brokerage services; safe deposit services; automated banking services; automated fund transfers; Internet-based banking services; and bank credit card services, including Visa and MasterCard services. The company also offers various other financial services, including portfolio management for fixed-income securities, investment banking, execution of securities transactions as a broker/dealer, asset management and financial planning services, and individual investment advice on equity and other securities, as well as trust services. As of December 31, 2018, it operated through 249 branches and 335 ATMs in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Financial Corp. was founded in 1888 and is headquartered in Columbus, Georgia.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. SNV has a short ratio of 2.18 and outstanding shares of 147.31M.

Company Outlook

SNV has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.54 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 2.94. Investors should also keep an eye on sector updates as SNV has historically followed its peers on positive news.

All told, Synovus Financial Corp. SNV has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SNV represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Synovus Financial Corp. SNV is now commanding a market cap of 3.80B and a float of 145.05M. SNV is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of SNV stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in SNV, either long or short, and we have not been compensated for this article.