Should You Consider Investing in Synaptics Inc. (SYNA)?

FPA Queens Road Small Cap Value Fund, in its Q4 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 an $8.7 billion market capitalization. SYNA delivered a -23.34% return since the beginning of the year, while its 12-month returns are up by 72.29%. The stock closed at $221.93 per share on March 03, 2022.

Here is what FPA Queens Road Small Cap Value Fund has to say about Synaptics Incorporated in its Q4 2021 investor letter:

“Synaptics, a developer of human interface (HMI) hardware and software, has continued its strategic shift to higher margin business, primarily Internet of Things (IoT) products. As we’ve followed management’s strategic shift towards higher-margin markets, we note that the company’s return on invested capital (ROIC) has steadily risen from around 8.5% in 2019 to the mid teens for the 12 months ending 12/31/2021. While we believe the recent and expected performance of the company are positives, valuation has become a concern and we are trimming our position.

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Our calculations show that Synaptics Incorporated (NASDAQ: SYNA) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SYNA was in 23 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 23 funds in the previous quarter. Synaptics Incorporated (NASDAQ: SYNA) delivered a -22.37% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on SYNA in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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