Chipmaker Synaptics rejects Chinese firm’s offer

In September, 2014, Intel (INTC) poured $1.5 billion into Tsinghua Unigroup, a subsidiary of the Chinese government-backed Tsinghua Holdings that controls fabless chip maker Spreadtrum and RDA Microelectronics, in a joint development deal to broaden the USA chip giant’s mobile devices portfolio and architecture in China and worldwide.

Synaptics, based in San Jose, California, is not interested in selling at the offer price, and may be seeking as much as $125 a share, but talks are still ongoing the report added.

Synaptics, (NASDAQ:SYNA) traded down 2.49% during trading on Thursday, hitting $80.41. And even if those concerns hold merit, Synaptics stock is admittedly attractive trading at less than 10 times next year’s expected earnings.

The most recent analyst actions consisted of Oppenheimer upgrading the stock on June 29 and Mizuho initiating coverage with an initiation rating back in May. Zacks cut shares of Synaptics, from a “buy” rating to a “hold” rating in a research note on Wednesday, July 1st. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The company’s 50-day moving average is $71.01 and its 200 day moving average is $83.35.

Synaptics, (NASDAQ:SYNA) last announced its quarterly earnings results on Thursday, July 30th. The offer was reportedly for $110 per share, which would have valued Synaptics at almost $4 billion. The business earned $478.90 million during the quarter, compared to the consensus estimate of $482.72 million. Equities analysts anticipate that Synaptics, will post $6.87 EPS for the current year. The shares were sold at an average price of $70.00, for a total transaction of $97,230.00. Following the sale, the senior vice president now owns 4,189 shares of the company’s stock, valued at approximately $293,230.

Rick Bergman, Synaptics chief executive, told Bloomberg the company doesn’t comment on rumors or speculation. The stock was sold at an average price of $70.93, for a total transaction of $709,300.00. The Company focuses on the personal computer ( PC) market, primarily notebook computers, including ultrabooks, the markets for digital lifestyle products, including mobile smartphones and feature phones, the tablet market, and other select electronic device markets with its customized human interface solutions. The TouchPad family, including ClickPad and ForcePad, is incorporated into the majority of today’s notebook PCs. Synaptics portfolio also includes ThinTouch supporting keyboard solutions that are light and thin, along with key technologies for next generation touch-enabled display and video applications.