Synaptics' Key Insider Rahul Patel Sells Shares
Key Points
The insider sold 2,276 shares at $93.83.
The transaction size was equivalent to 1.2% of his equity stake.
The insider retains 186,515 shares.
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Rahul G. Patel reported a sale of 2,276 shares of Synaptics Incorporated (NASDAQ:SYNA) in an SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Transaction value | $213,557 |
| Shares sold | 2,276 |
| Post-transaction shares (directly held) | 186,515 |
| Post-transaction value | $17.8 million |
Transaction value based on SEC Form 4 weighted average sale price ($93.83); post-transaction value based on Sept. 21 market close ($95.36).
Company Overview
| Metric | Value |
|---|---|
| Share Price (as of Sept. 21 market close) | $95.36 |
| Market Capitalization | $3.6 billion |
| Revenue (TTM) | $1.2 billion |
| Net Loss (TTM) | -$490.8 million |
Company Snapshot
Synaptics, established in 1986 and headquartered in San Jose, California, is a global semiconductor solutions provider with approximately 1,700 employees.
- Synaptics develops and markets semiconductor product solutions, including AudioSmart for advanced sound and voice processing, ConnectSmart for high-speed multimedia connectivity, and DisplayLink for compressed video transmission, generating revenue across audio, video, and connectivity solutions.
- The company operates a fabless semiconductor business model, designing specialized chips for human-machine interface and multimedia connectivity applications.
- Synaptics serves original equipment manufacturers and system integrators in consumer electronics, computing, and mobile device markets, with primary customers including major PC, smartphone, and IoT device manufacturers.
What this transaction means for investors
Investors tend to get their haunches up when they see a key insider, like the CEO, dispose of shares. In this case, Patel was one of several insiders to sell shares at the same time. Aside from CEO Patel, VP/Controller Esther Song, and SVP/Chief Legal Officer Lisa Bodensteiner also sold stock.
However, investors shouldn’t read anything into the transactions. That’s because they sold shares under 10b5-1 plans. These trading plans are set up ahead of time between insiders (e.g., directors and officers) with access to key information. They set terms like the timing and number of shares.
Designed to avoid the appearance of insider trading on material, nonpublic information, which means investors can’t glean any information from these transactions.
Shareholders have been rewarded for owning Synaptics’ stock. This year, the stock gained 58.3% through Oct. 16. That easily beat the tech-heavy Nasdaq Composite’s total return of 13%.
Source: SEC Form 4 filing for SYNA | Filed: Sept. 21
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Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Synaptics. The Motley Fool has a disclosure policy.
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