Allspring Global Investments Cuts Stake in Synovus Financial by 32%

Allspring Global Investments Holdings LLC has reduced its stake in Synovus Financial Corp. (NYSE: SNV) by 32.2% during the third quarter of 2023, according to its latest filing with the U.S. Securities and Exchange Commission (SEC). After selling 72,310 shares, Allspring now owns 152,332 shares, representing 0.11% of Synovus Financial, valued at approximately $7.4 million.

This adjustment in holdings comes as part of a broader trend among institutional investors in the financial sector. Notably, Royal Bank of Canada increased its stake in Synovus Financial by 51.2% during the first quarter, acquiring an additional 9,080 shares for a total of 26,820 shares, valued at around $1.25 million. Similarly, Amundi reported a dramatic increase of 78,349.2% in its holdings, now owning 100,415 shares worth approximately $4.69 million after purchasing an additional 100,287 shares.

Advisors Asset Management Inc. also raised its stake by 17.8% with an investment of $205,000 for 4,388 shares, while AllianceBernstein L.P. boosted its position by 67.0%, acquiring 124,987 shares to reach 311,528 shares, valued at about $14.56 million. Additionally, Millennium Management LLC increased its holdings by 125.5%, amassing 646,098 shares worth approximately $30.20 million. Currently, institutional investors and hedge funds collectively own 83.85% of Synovus Financial’s stock.

Analyst Ratings and Stock Performance

Recent analyst reports have provided varied insights on Synovus Financial. On October 17, Stephens lowered its price target from $54.00 to $51.00 while maintaining an “equal weight” rating. In contrast, JPMorgan Chase & Co. raised its target price from $58.00 to $65.00, giving the bank an “overweight” rating. Truist Financial also adjusted its target, reducing it from $56.00 to $55.00 while issuing a “buy” rating.

DA Davidson reiterated a “buy” rating with a price target set at $63.00, whereas Weiss Ratings downgraded Synovus Financial from a “buy (B-)” to a “hold (C+)” rating. As of now, six analysts have assigned a “buy” rating to the stock, while eight analysts have classified it as a “hold.” The consensus target price stands at $58.38.

On October 15, Synovus Financial reported its quarterly earnings, revealing earnings per share (EPS) of $1.46, surpassing the consensus estimate of $1.36 by $0.10. The bank achieved a net margin of 21.97% and a return on equity of 16.13%. The reported revenue for the quarter reached $612.79 million, exceeding analyst expectations of $604.59 million. In comparison to the same quarter last year, revenue increased by 9.0%.

Dividend Announcement and Insider Activity

In financial news, Synovus Financial recently declared a quarterly dividend of $0.39, which was paid on December 24, 2023. Shareholders on record as of December 18 received this dividend, representing an annualized dividend of $1.56 and a yield of 3.1%. The ex-dividend date was also December 18, with the company currently maintaining a dividend payout ratio of 29.10%.

In a notable insider transaction, Director Gregory G. Montana purchased 1,000 shares of Synovus Financial stock on October 20 at an average price of $45.37 per share. This acquisition totaled $45,370.00, increasing his holdings to 5,464 shares valued at approximately $247,901.68, reflecting a 22.40% increase in his position.

About Synovus Financial Corp.

Synovus Financial Corp. is a regional financial services provider headquartered in Columbus, Georgia. The company offers a diverse range of banking and financial products to individuals, small businesses, and large corporations. Its services include commercial and retail banking, mortgage lending, treasury and payment solutions, and wealth management.

In the commercial banking sector, Synovus provides tailored loans, lines of credit, and treasury management services designed to meet the specific needs of businesses across various industries.