What Happened?
Shares of regional banking company Synovus Financial (NYSE: SNV) fell 12.1% in the afternoon session after the company announced its acquisition by Pinnacle Financial Partners in an $8.6 billion all-stock deal.
The transaction aimed to create a combined bank with over $100 billion in assets focused on the southeastern U.S. However, investors reacted negatively, with analysts noting general skepticism around large "merger of equals" (MOEs), where stocks involved often underperformed as investors took a wait-and-see approach.
Adding to the concerns, Pinnacle's stock also fell after multiple brokerages downgraded it due to heightened deal execution risk. Furthermore, an investor rights law firm launched an investigation into whether the merger was fair to Synovus shareholders, questioning if the board obtained the best possible price for the company.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Synovus Financial? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Synovus Financial’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. But moves this big are rare even for Synovus Financial and indicate this news significantly impacted the market’s perception of the business.
Synovus Financial is down 2.5% since the beginning of the year, and at $49.57 per share, it is trading 16.8% below its 52-week high of $59.60 from July 2025. Investors who bought $1,000 worth of Synovus Financial’s shares 5 years ago would now be looking at an investment worth $2,443.
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