by Sam Collins | December 16, 2013 7:03 am
Synaptics (SYNA) — This company develops, markets and sells custom-designed human interface solutions for electronic devices and products such as smartphones, tablets and ultrabooks. In late October, it was named one of Forbes’ Top 10 Small Tech Companies.
In its most recent quarterly report, the company said revenue rose 75% year over year to $222.6 million, and it earned $1.31 per diluted share. Consensus estimates are for earnings of $3.71 in fiscal 2014, ended in June, up from $3.11 the prior year, and $3.95 in fiscal 2015. The mean target is $56.62.
I first recommended SYNA on Nov. 6, at just below $46, saying, “The stock broke from a five-month consolidation early in September and ran from $41 to $56.50 in about six weeks. Profit-taking and market conditions then drove it from its high to its 50-day moving average at $45 and also created a gap down from $52.05 to $49.89. Since gaps are usually partially filled on a stock’s first recovery bounce, the midpoint of the gap at $51 is an initial trading target.”
The trading target was met on Nov. 27 at a high of $51.23, so traders should have already sold their positions. But longer-term buyers may wish to hold SYNA for greater gains. Current support is at $48.
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– Sam Collins, InvestorPlace Chief Technical Analyst
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