Needham & Company LLC Forecasts Strong Price Appreciation for Synopsys (NASDAQ:SNPS) Stock

Key Points

• Needham raised Synopsys’ price target from $580 to $620 and maintained a “buy” rating, implying 21.57% potential upside from the prior close. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $571.78.
• Synopsys reported strong quarterly results, with adjusted earnings of $3.91 per share versus the $3.67 estimate and revenue of $2.48 billion, up 42.4% year over year.
• The company authorized a $1 billion share-repurchase program, while institutional investors own 85.47% of shares; insiders have sold approximately $44.6 million of stock over the past 90 days.

Synopsys (NASDAQ:SNPS - Get Free Report) had its price target raised by research analysts at Needham & Company LLC from $580.00 to $620.00 in a research report issued to clients and investors on Monday, Benzinga reports. The firm currently has a "buy" rating on the semiconductor company's stock. Needham & Company LLC's target price suggests a potential upside of 21.57% from the stock's previous close.

SNPS has been the subject of a number of other research reports. HSBC downgraded Synopsys from a "buy" rating to a "reduce" rating in a research report on Friday, September 25th. Piper Sandler upgraded Synopsys from a "neutral" rating to an "overweight" rating and upped their target price for the company from $450.00 to $550.00 in a research note on Tuesday, June 23rd. Morgan Stanley reduced their target price on Synopsys from $525.00 to $500.00 and set an "equal weight" rating for the company in a research report on Wednesday, August 19th. Benchmark reiterated a "buy" rating and set a $570.00 price target on shares of Synopsys in a research note on Thursday, August 27th. Finally, Barclays began coverage on shares of Synopsys in a research note on Friday, September 25th. They set an "overweight" rating on the stock. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $571.78.

Synopsys Stock Performance

NASDAQ:SNPS opened at $509.99 on Monday. The firm's 50-day moving average is $419.94 and its 200-day moving average is $439.05. Synopsys has a 52-week low of $362.55 and a 52-week high of $539.48. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34. The company has a market cap of $97.73 billion, a price-to-earnings ratio of 90.10, a PEG ratio of 2.08 and a beta of 1.21.

Synopsys (NASDAQ:SNPS - Get Free Report) last released its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, beating the consensus estimate of $3.67 by $0.24. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The business had revenue of $2.48 billion during the quarter, compared to analysts' expectations of $2.44 billion. During the same quarter last year, the company earned $3.39 earnings per share. The firm's revenue was up 42.4% on a year-over-year basis. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. Equities research analysts anticipate that Synopsys will post 10.97 earnings per share for the current year.

Synopsys announced that its board has authorized a stock repurchase plan on Monday, October 5th that authorizes the company to buy back $1.00 billion in shares. This repurchase authorization authorizes the semiconductor company to reacquire up to 1.1% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management believes its stock is undervalued.

Insider Buying and Selling

In other news, insider Janet Lee sold 1,144 shares of the stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $502.52, for a total value of $574,882.88. Following the completion of the transaction, the insider directly owned 16,534 shares of the company's stock, valued at approximately $8,308,665.68. This represents a 6.47% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Aart de Geus sold 24,641 shares of the stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $419.44, for a total value of $10,335,421.04. Following the completion of the transaction, the insider directly owned 120,443 shares of the company's stock, valued at approximately $50,518,611.92. The trade was a 16.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 102,559 shares of company stock valued at $44,607,141. 0.56% of the stock is currently owned by company insiders.

Institutional Trading of Synopsys

A number of large investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in shares of Synopsys during the second quarter worth about $7,228,099,000. Van ECK Associates Corp grew its holdings in shares of Synopsys by 19.7% during the second quarter. Van ECK Associates Corp now owns 3,457,249 shares of the semiconductor company's stock worth $1,542,175,000 after buying an additional 569,687 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Synopsys by 40.7% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,087,349 shares of the semiconductor company's stock valued at $1,377,174,000 after buying an additional 892,736 shares during the last quarter. Assenagon Asset Management S.A. raised its position in Synopsys by 39.5% in the 2nd quarter. Assenagon Asset Management S.A. now owns 2,455,402 shares of the semiconductor company's stock valued at $1,095,281,000 after buying an additional 695,146 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Synopsys in the 2nd quarter valued at approximately $747,400,000. 85.47% of the stock is currently owned by institutional investors.

Synopsys Company Profile

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and software tools used to design, verify, and manufacture advanced electronic systems. Its solutions support the development of semiconductors, systems-on-chip, and electronic products across the design cycle, from initial specification and architecture through testing and production.

The company's offerings include digital and custom integrated-circuit design tools, simulation and verification software, physical design and signoff products, and semiconductor IP such as processor cores, interface technologies, and foundational components.

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