Richard Hume, a director at TD (TSX:TD) Synnex Corp (NYSE:SNX), recently sold a significant portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Hume sold a total of 20,000 shares on October 16, 2024. The shares were sold at prices ranging from $119.85 to $121.07, totaling approximately $2.41 million.
These transactions were executed under a prearranged Rule 10b5-1 trading plan, which Hume adopted on June 28, 2024. After the sales, Hume retains ownership of 171,080 shares in the company. The sales were part of multiple transactions, with weighted average prices provided for each batch of shares sold.
TD Synnex, headquartered in Fremont, California, is a leading distributor of IT products and services. This stock sale by a director may be of interest to investors monitoring insider trading activities for potential insights into the company's future performance.
In other recent news, TD Synnex has been a highlight in the IT sector with its positive growth and strategic initiatives. The company's earnings for the August quarter showed a year-over-year gross billing and revenue increases of 9% and 5% respectively, as reported by Loop Capital. This growth was primarily driven by the company's Strategic Technologies sector, including cloud computing, artificial intelligence, and Hyve. However, the company's gross margin saw a slight decline, attributed to investments in Hyve's capabilities, particularly in AI servers.
TD Synnex also reported a solid third-quarter fiscal performance, with gross billings rising by 9% year-over-year to $20.3 billion and non-GAAP diluted earnings per share slightly surpassing expectations. Additionally, the company recently adopted significant amendments to its corporate bylaws and hinted at a proposal to alter its certificate of incorporation. These changes adjust the voting threshold required for the board and shareholders to adopt, amend, or repeal bylaws.
Analysts from Goldman Sachs (NYSE:GS) maintained a Buy rating on TD Synnex, acknowledging that the company's third fiscal quarter earnings per share surpassed expectations due to robust demand in the IT market. Despite a slower PC market recovery, TD Synnex anticipates a continued uptick in IT spending through the end of the year and into fiscal 2025. Goldman Sachs projects an 8% increase in revenue growth for TD Synnex in fiscal 2025, driven by the anticipated recovery in PC sales and networking growth. These recent developments underscore TD Synnex's strategic growth plans and its focus on enhancing value across multiple technology categories.
InvestingPro Insights
To provide additional context to Richard Hume's recent stock sale at TD Synnex Corp (NYSE:SNX), let's examine some key financial metrics and insights from InvestingPro.
According to InvestingPro data, TD Synnex has a market capitalization of $10.51 billion and is trading at a P/E ratio of 15.86. This valuation is particularly interesting when considering one of the InvestingPro Tips, which notes that the company is "Trading at a low revenue valuation multiple." This could suggest that despite the recent insider sale, the stock may still be attractively priced relative to its revenue.
Another relevant InvestingPro Tip highlights that TD Synnex "Has raised its dividend for 4 consecutive years." This consistent dividend growth, coupled with a current dividend yield of 1.3%, may appeal to income-focused investors and could provide some stability to the stock price.
It's worth noting that TD Synnex has shown strong performance, with a 30.67% total return over the past year. This aligns with another InvestingPro Tip indicating a "High return over the last decade," suggesting a track record of delivering value to shareholders.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for TD Synnex, providing a deeper understanding of the company's financial health and market position.
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