Synopsys, Inc. (SNPS) - What Are Brokerages Saying About This Stock?

Key Points

• Analyst sentiment is broadly positive: Twenty-one of 26 brokerages rate Synopsys a “buy,” one rates it a “strong buy,” and four recommend holding. The average 12-month price target is $571.78.
• Recent ratings were mixed, with Rosenblatt and Wells Fargo raising their price targets, while HSBC downgraded the stock and Mizuho and JPMorgan lowered their targets.
• Synopsys exceeded quarterly earnings and revenue estimates, reporting $3.91 in EPS and $2.48 billion in revenue, while authorizing a $1 billion share-repurchase program. Insiders have nevertheless sold more than $51 million of stock over the past 90 days.

Shares of Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) have earned an average recommendation of "Moderate Buy" from the twenty-six brokerages that are currently covering the stock, Marketbeat.com reports. Four analysts have rated the stock with a hold recommendation, twenty-one have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price target among brokerages that have covered the stock in the last year is $571.78.

SNPS has been the topic of a number of recent analyst reports. Rosenblatt Securities increased their price objective on Synopsys from $575.00 to $620.00 and gave the company a "buy" rating in a report on Thursday, October 1st. HSBC cut Synopsys from a "buy" rating to a "reduce" rating in a research note on Friday, September 25th. Mizuho decreased their target price on Synopsys from $600.00 to $550.00 and set an "outperform" rating for the company in a research note on Thursday, August 27th. Wells Fargo & Company upped their price target on Synopsys from $475.00 to $540.00 and gave the company an "overweight" rating in a report on Thursday, October 1st. Finally, JPMorgan Chase & Co. dropped their price target on shares of Synopsys from $650.00 to $600.00 in a research note on Thursday, August 27th.

Insider Activity at Synopsys

In other news, insider Aart de Geus sold 24,641 shares of the company's stock in a transaction on Tuesday, September 1st. The shares were 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 owned 120,443 shares in the company, valued at approximately $50,518,611.92. This represents a 16.98% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Janet Lee sold 1,144 shares of the company's stock in a transaction on Tuesday, October 6th. The shares were sold at an average price of $502.52, for a total transaction of $574,882.88. Following the completion of the transaction, the insider owned 16,534 shares of the company's stock, valued at approximately $8,308,665.68. The trade was a 6.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 117,163 shares of company stock worth $51,366,457 over the last 90 days. 0.56% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Synopsys

Institutional investors and hedge funds have recently bought and sold shares of the stock. AGH Wealth Advisors LLC grew its position in shares of Synopsys by 4.4% during the 1st quarter. AGH Wealth Advisors LLC now owns 569 shares of the semiconductor company's stock valued at $226,000 after purchasing an additional 24 shares in the last quarter. Elevation Wealth Partners LLC raised its position in shares of Synopsys by 96.4% in the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company's stock worth $25,000 after buying an additional 27 shares in the last quarter. Bar Harbor Wealth Management raised its position in shares of Synopsys by 0.7% in the first quarter. Bar Harbor Wealth Management now owns 4,181 shares of the semiconductor company's stock worth $1,658,000 after buying an additional 31 shares in the last quarter. Oak Grove Capital LLC boosted its stake in Synopsys by 1.1% during the third quarter. Oak Grove Capital LLC now owns 2,898 shares of the semiconductor company's stock valued at $1,260,000 after buying an additional 32 shares during the period. Finally, Kintegral Advisory LLC boosted its stake in Synopsys by 0.6% during the third quarter. Kintegral Advisory LLC now owns 5,812 shares of the semiconductor company's stock valued at $2,528,000 after buying an additional 32 shares during the period. 85.47% of the stock is owned by hedge funds and other institutional investors.

Synopsys Price Performance

SNPS stock opened at $454.58 on Tuesday. The business's 50-day moving average is $428.42 and its two-hundred day moving average is $442.33. The firm has a market capitalization of $87.12 billion, a P/E ratio of 80.31, a P/E/G ratio of 1.85 and a beta of 1.21. Synopsys has a 1 year low of $362.55 and a 1 year high of $539.48. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.34 and a quick ratio of 1.24.

Synopsys (NASDAQ:SNPS - Get Free Report) last issued its quarterly earnings results 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 net margin of 11.43% and a return on equity of 6.24%. The firm's quarterly revenue was up 42.4% on a year-over-year basis. During the same quarter in the previous year, the firm 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 anticipate that Synopsys will post 10.97 earnings per share for the current fiscal year.

Synopsys announced that its Board of Directors has authorized a stock repurchase program on Monday, October 5th that authorizes the company to repurchase $1.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor company to purchase up to 1.1% of its stock through open market purchases. Stock buyback programs are often a sign that the company's management believes its shares are undervalued.

Synopsys Company Profile

Synopsys, Inc is an electronic design automation (EDA) and semiconductor intellectual property company serving the global semiconductor and electronics industries. Its software helps engineers design, verify, test and manufacture advanced integrated circuits and electronic systems.

The company's products and services support digital and analog design, functional verification, design-for-test, manufacturing and semiconductor engineering workflows. Synopsys also provides reusable semiconductor IP, including processor cores, interface technologies, security solutions and other components used in system-on-chip designs.

In addition to its semiconductor design offerings, Synopsys provides software development and application security tools intended to help organizations identify and manage vulnerabilities and risks across the software development lifecycle.

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