Is Synaptics (SYNA) A Great Buy?

FPA Queens Road, an investment management firm, published its “FPA Queens Road Small Cap Value Fund” third-quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio outpaced the Russell 2000 Value TR USD Index in the quarter, delivering a -2.53% return against the index’s -2.98% return for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

FPA Queens Road Small Cap Value Fund, in its Q3 2021 investor letter, mentioned Synaptics Incorporated (NASDAQ: SYNA) and discussed its stance on the firm. Synaptics Incorporated is a San Jose, California-based hardware company with a $10.6 billion market capitalization. SYNA delivered a 181.92% return since the beginning of the year, while its 12-month returns are up by 249.45%. The stock closed at $271.77 per share on November 26, 2021.

Here is what FPA Queens Road Small Cap Value Fund  has to say about Synaptics Incorporated  in its Q3 2021 investor letter:

“Synaptics, a developer of human interface (HMI) hardware and software, is experiencing a strategic shift to a higher-margin business, primarily Internet of Things (IoT) products, and continued its recent trend of announcing higher operating margins and providing favorable financial guidance. During the quarter, the company announced it was purchasing former portfolio holding, DSP Group, a communications chip designer.Management is executing well on this strategic shift and delivering impressive financial results.”

Photo by Danial Igdery on Unsplash

Based on our calculations, Synaptics Incorporated (NASDAQ: SYNA) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. SYNA was in 23 hedge fund portfolios at the end of the third quarter of 2021, compared to 27 funds in the previous quarter. Synaptics Incorporated (NASDAQ: SYNA) delivered a 44.38% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.