Why Synacor Inc (NASDAQ:SYNC) Gapped Down on Open

Synacor Inc (NASDAQ:SYNC)

Buffalo, NY-based Synacor Inc (NASDAQ:SYNC) announced this morning the pricing of a public offering for 5.715 million shares of its common stock. The market responded by sending the share price down 15% on heavy volumes. SYNC shares have an average daily volume of 113,540 but less than 30 minutes into trading, over 1 million shares have been traded.

Synacor Inc (NASDAQ:SYNC) shares had been on a good run. In February and March SYNC shares had experienced support just over $3 and in mid-March SYNC shares exploded to $4.20 where they met resistance. SYNC shares closed yesterday at $.15 and opened this morning on the dilution news at $3.55. Interestingly, before the announcement ragrding the public offering, SYNC shares had a relative strebgth number of 82 which most experts believe is a level which represents and “overbought” situation.

Synacor Inc (NASDAQ:SYNC) develops multi-screen, multi-platform solutions for video, internet and device manufacturer providers. Synacor enables its customers to monetize their media offerings by offering consumers a personalized TV experience anywhere. Synacor also offers an open source multi-platform, device agnostic, solution, Zimbra, for digital collaboration and connectivity between emails, contact libraries, tasks, calendars, and files.

Insiders own 41.47% of the outstanding shares. Synacor Inc (NASDAQ:SYNC) has strong institutional ownership representing one-third of the outstanding shares and recently that figure increased by over 11%.SYNC’s 52-week high was $4.25 and its 52-week low was $1.35.

Synacor Inc (NASDAQ:SYNC) sales have trended higher since 2014 when the company posted $106.6 million. In 2016 that figure improved to $127.4 million. In 2016 SYNC EPS was a loss of -$0.36 which was worse than 2015’s EPS loss of -$0.12. Synacor Inc (NASDAQ:SYNC) will issue its next financial report on March 15, 2017.

4/6/2017
Ticker Symbol SYNC
Last Price a/o 10:14 AM EST  $                      3.60
Average Volume                    113,540
Market Cap (mlns)  $                  132.22
Sales (mlns) $127.40
Shares Outstanding (mlns) 31.86
Share Float (mlns) 25.68
Shortable Yes
Optionable Yes
Inside Ownership 41.47%
Short Float 1.35%
Short Interest Ratio 3.05
Quarterly Return 33.87%
YTD Return 33.87%
Year Return 202.92%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Author: Marcus Anderson

Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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