Connect with us

Hi, what are you looking for?

Stock

Is Synchronoss Technologies a Good Software Stock to Buy?

Stock Markets40 minutes ago (Jun 28, 2021 09:31AM ET)

(C) Reuters. Is Synchronoss Technologies a Good Software Stock to Buy?

Investors reacted positively to software company Synchronoss Technologies’ (SNCR) $100 million stock offering on June 25. It plans to use the offering’s proceeds primarily to redeem preferred stock and pay down its revolving credit facility. However, because SNCR is facing intense competition from top players in the software space, the question is, is it wise to bet on the stock now? Let’s find out.
Global software and services company Synchronoss Technologies, Inc.’s (NASDAQ:SNCR) solutions are used by more than 200 businesses worldwide, including by the likes of Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (T). Its shares traded higher on June 25 following its pricing of a $100 million public offering of common stock. The company plans to use the offering’s proceeds to redeem its Series A convertible participating perpetual preferred stock and to pay down its revolving credit facility. Its stock price has soared 46.5% since hitting its 52-week low of $2.35 on June 21, 2021.

However, SNCR has lost 24.9% so far this year and 9.5% over the past three months to close Friday’s trading session at $3.53. This can be attributed primarily to its weak financials in the first quarter (ended March 31, 2021) and poor profitability. The company also continues to face intense competition from top players in the software space, such as SAP SE (DE:SAPG) (SAP) and Oracle Corporation (NYSE:ORCL).

Furthermore, SNCR is currently searching for a new CFO because its current CFO, David Clark, is expected to step down from his role on August 9, 2021. So, SNCR’s near-term prospects look uncertain.

Continue reading on StockNews

Is Synchronoss Technologies a Good Software Stock to Buy?

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Stock

Stock Markets25 minutes ago (Jul 16, 2021 05:46PM ET) (C) Reuters. FILE PHOTO: Johnson & Johnson’s Neutrogena Cool Dry Sport sunscreen, which is part...

Tech

Builders, creators and developers, this one’s for you! TechCrunch has always been about discovering fresh solutions and shining the light on exciting, new products...

Disclaimer: Wisegazette.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Wise Gazette. All Rights Reserved