Tomahawk, WI 8/15/2013 (Basicsmedia) – Synovus Financial Corp. (NYSE:SNV) is a financial company as the name suggests. In this article, I will look at this stock closely and determine whether investors have a good reason to invest in it or not. A few years ago, this was touted to be one of the hottest companies in which to invest; therefore, I will look at whether the view has changed or it still holds true in this day and age. It would seem that a number of investors love this stock and are quite optimistic about its future performance hence my interest in the same and decision to write about it.


Image shows SNV earning growth compared to the rest of the industry.

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How Do Hedge Funds View SNV Stock?

It is important to take a look at how hedge funds are trading SNV, presently and in the past. This will give you an idea about the nature of this stock and how it is expected to perform in the future. At the beginning of 2013, close to twenty hedge funds were quite bullish about this stock. This is quite significant since towards the end of 2012, fewer hedge funds were prepared to take the same position regarding SNV stock. The number had risen by 6% at the beginning of 2013 compared to what was reported in 2012. This shows the confidence the funds have in the stock.

How Are Insiders Trade SNV Stock?

The next place you need to look at in order to get an idea regarding how the company’s stock will behave in future, and why investors should invest in it, is by close scrutiny of the insiders’ behavior. When you scrutinize how insiders are trading this stock, it will give you an idea as to how they think about it in the first place. You will also glean a few ideas regarding how they intend to trade this stock in the future thus helping you make a decision as to whether it is safe to invest in it or not.

At the end of first quarter in 2013, no insiders had bought the stock. However, in the same period, there had been one unique sell by insiders. This behavior is adequate to give you an idea as to what kind of future SNV stock has. The fact that insiders were willing to sell rather than buy this company’s stock is enough to give you an idea as to what your responsibilities as an investor should be. However, this is behavior which was observed earlier during 2013. You would need to look at what has transpired between then and now and check if there are changes.

What Does The Future Hold for SNV?

I believe that SNV is on the right track. It is imperative to remember that the banking sector was perhaps the one industry which was most affected by the financial crisis of 2008. This led to a situation where most investors were unsure of their investments with these financial institutions, of which SNV is one. However, from what I have seen thus far, and based on the fact that SNV has said it want to focus more on increasing its revenue going forward, I think one should not be afraid that this institution is unsafe.

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