Synopsys, Inc. (NASDAQ:SNPS) Stock Has Average Price Target of $575.00

Key Points

• Analysts give Synopsys a “Moderate Buy” consensus, with 23 of 26 covering firms rating the stock a buy or strong buy and an average 12-month price target of $575.
• Synopsys beat quarterly earnings and revenue estimates, reporting EPS of $3.91 and revenue of $2.48 billion; revenue increased 42.4% year over year.
• The board authorized a $1 billion share buyback, while company insiders sold about $51.4 million in shares over the past 90 days.

Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the twenty-six research firms that are presently covering the firm, Marketbeat reports. Three investment analysts have rated the stock with a hold rating, twenty-two have issued a buy rating and one has issued a strong buy rating on the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $575.00.

SNPS has been the topic of a number of recent analyst reports. Sanford C. Bernstein began coverage on shares of Synopsys in a research report on Friday, September 25th. They issued an "outperform" rating on the stock. Bank of America increased their price objective on shares of Synopsys from $500.00 to $600.00 in a research report on Thursday, October 1st. Barclays assumed coverage on shares of Synopsys in a research note on Friday, September 25th. They set an "overweight" rating for the company. Deutsche Bank restated a "buy" rating and issued a $640.00 target price (up from $590.00) on shares of Synopsys in a report on Thursday, October 1st. Finally, BNP Paribas Exane upped their price target on shares of Synopsys from $420.00 to $475.00 and gave the company a "neutral" rating in a research report on Thursday, October 1st.

Insiders Place Their Bets

In related news, CFO Sudhindra Kankanwadi sold 9,170 shares of the firm's stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $500.00, for a total transaction of $4,585,000.00. Following the completion of the sale, the chief financial officer owned 22,717 shares of the company's stock, valued at $11,358,500. This trade represents a 28.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Sassine Ghazi sold 14,604 shares of Synopsys stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $374.88, for a total value of $5,474,747.52. Following the completion of the sale, the chief executive officer owned 76,865 shares of the company's stock, valued at approximately $28,815,151.20. The trade was a 15.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 117,163 shares of company stock valued at $51,366,457 over the last 90 days. 0.56% of the stock is owned by company insiders.

Institutional Trading of Synopsys

Several hedge funds have recently modified their holdings of the stock. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Synopsys during the second quarter worth $747,400,000. Man Group plc acquired a new position in shares of Synopsys during the second quarter valued at about $55,900,000. Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust increased its position in shares of Synopsys by 21.3% during the third quarter. Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust now owns 31,144 shares of the semiconductor company's stock worth $13,546,000 after acquiring an additional 5,476 shares in the last quarter. Nykredit A S bought a new stake in shares of Synopsys during the second quarter worth about $23,158,000. Finally, Bank of America Corp DE acquired a new stake in shares of Synopsys in the 2nd quarter worth about $539,986,000. Institutional investors own 85.47% of the company's stock.

Synopsys Stock Down 1.6%

Shares of NASDAQ:SNPS opened at $455.20 on Friday. The firm has a market cap of $87.23 billion, a P/E ratio of 80.42, a P/E/G ratio of 1.47 and a beta of 1.18. Synopsys has a 12-month low of $362.55 and a 12-month high of $539.48. The business has a fifty day simple moving average of $445.16 and a 200 day simple moving average of $441.11. The company has a quick ratio of 1.24, a current ratio of 1.34 and a debt-to-equity ratio of 0.29.

Synopsys (NASDAQ:SNPS - Get Free Report) last issued its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.67 by $0.24. The company had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.44 billion. Synopsys had a return on equity of 6.24% and a net margin of 11.43%. The firm's revenue was up 42.4% compared to the same quarter last year. During the same period last year, the company earned $3.39 earnings per share. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. Analysts predict that Synopsys will post 11.01 earnings per share for the current year.

Synopsys declared that its board has authorized a stock buyback program on Monday, October 5th that allows the company to repurchase $1 billion in shares. This repurchase authorization allows the semiconductor company to reacquire up to 1.1% of its stock through open market purchases. Share repurchase programs are often an indication that the company's board believes its stock is undervalued.

More Synopsys News

These are some of the SNPS news items that stood out recently:

• Positive Sentiment: Synopsys agreed to provide electronic design automation tools for the European Chips Design Platform, which is intended to help startups and midsized firms develop chips for AI, high-performance computing and photonics. The partnership could broaden access to Synopsys’ software, though its financial impact was not specified. Synopsys Joins European Chips Design Platform
• Positive Sentiment: Coverage points to AI-powered chip design and verification, expanding EDA capabilities and the Ansys integration as potential growth drivers. A Seeking Alpha article also argues Synopsys could exceed growth estimates. Can AI-Driven EDA Accelerate Synopsys' Next Growth Phase? Synopsys Looks Poised To Outperform Growth Estimates
• Negative Sentiment: One report says SNPS had fallen nearly 10% over a week and highlights export-control risks, signaling investor caution despite the company’s exposure to AI-chip development. Synopsys Investment Outlook and Risks

Synopsys Company Profile

Synopsys, Inc. develops software, semiconductor intellectual property (IP) and services used to design and verify electronic systems. Its electronic design automation (EDA) tools help customers create, simulate, test and validate chips and other complex electronic products, while its IP portfolio provides reusable building blocks for semiconductor designs. The company also offers software security and quality tools that help developers identify vulnerabilities and assess applications throughout the software development process.

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