13,219 Shares in Synopsys, Inc. $SNPS Bought by Motley Fool Asset Management LLC

Key Points

• Motley Fool Asset Management initiated a Synopsys position by purchasing 13,219 shares worth approximately $5.75 million in the third quarter. Institutional investors collectively own 85.47% of the company.
• Analysts remain broadly positive, with Synopsys holding a consensus “Moderate Buy” rating and an average price target of $575. Several firms recently raised their targets, though JPMorgan lowered its objective to $600.
• Synopsys reported better-than-expected quarterly results, with revenue rising 42.4% year over year, and authorized a $1 billion share buyback. However, executives have also sold shares, including the CEO and CFO, while insiders sold $51.4 million of stock over the past 90 days.

Motley Fool Asset Management LLC bought a new position in Synopsys, Inc. (NASDAQ:SNPS - Free Report) during the 3rd quarter, according to its most recent filing with the SEC. The institutional investor bought 13,219 shares of the semiconductor company's stock, valued at approximately $5,749,000.

Several other large investors have also recently bought and sold shares of SNPS. North Dakota State Investment Board increased its holdings in shares of Synopsys by 0.5% in the third quarter. North Dakota State Investment Board now owns 5,706 shares of the semiconductor company's stock worth $2,482,000 after purchasing an additional 29 shares during the period. Sigma Investment Counselors Inc. boosted its stake in Synopsys by 18.6% during the third quarter. Sigma Investment Counselors Inc. now owns 24,448 shares of the semiconductor company's stock valued at $10,633,000 after buying an additional 3,828 shares during the period. Generali Asset Management SPA SGR boosted its stake in Synopsys by 2.2% during the third quarter. Generali Asset Management SPA SGR now owns 15,408 shares of the semiconductor company's stock valued at $6,702,000 after buying an additional 338 shares during the period. Asset Management One Co. Ltd. boosted its stake in Synopsys by 0.8% during the third quarter. Asset Management One Co. Ltd. now owns 79,536 shares of the semiconductor company's stock valued at $34,593,000 after buying an additional 654 shares during the period. Finally, Angeles Wealth Management LLC boosted its stake in Synopsys by 8.3% during the third quarter. Angeles Wealth Management LLC now owns 899 shares of the semiconductor company's stock valued at $391,000 after buying an additional 69 shares during the period. 85.47% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the company. Morgan Stanley boosted their target price on Synopsys from $500.00 to $574.00 and gave the stock an "overweight" rating in a research report on Tuesday, October 20th. UBS Group set a $570.00 price target on Synopsys in a report on Thursday, August 27th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $640.00 price target (up from $590.00) on shares of Synopsys in a research report on Thursday, October 1st. JPMorgan Chase & Co. cut their price objective on Synopsys from $650.00 to $600.00 in a report on Thursday, August 27th. Finally, Bank of America upped their price objective on shares of Synopsys from $500.00 to $600.00 in a research report on Thursday, October 1st. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, Synopsys presently has a consensus rating of "Moderate Buy" and a consensus target price of $575.00.

Insider Transactions at Synopsys

In other news, CEO Sassine Ghazi sold 14,604 shares of the stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $462.84, for a total transaction of $6,759,315.36. Following the transaction, the chief executive officer directly owned 76,865 shares in the company, valued at approximately $35,576,196.60. This represents a 15.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Sudhindra Kankanwadi sold 9,170 shares of the stock in a transaction dated Tuesday, October 6th. The shares were sold at an average price of $500.00, for a total value of $4,585,000.00. Following the transaction, the chief financial officer owned 22,717 shares in the company, valued at $11,358,500. This trade represents a 28.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 117,163 shares of company stock worth $51,366,457. Company insiders own 0.56% of the company's stock.

Synopsys Stock Performance

Synopsys stock opened at $481.89 on Thursday. The firm's fifty day moving average price is $434.30 and its 200-day moving average price is $444.12. 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 stock has a market cap of $92.35 billion, a P/E ratio of 85.14, a price-to-earnings-growth ratio of 1.75 and a beta of 1.21. Synopsys, Inc. has a fifty-two week low of $362.55 and a fifty-two week high of $539.48.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted 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. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The company had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.44 billion. During the same period in the previous year, the firm posted $3.39 EPS. The firm's revenue was up 42.4% compared to the same quarter last year. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. On average, equities research analysts expect that Synopsys, Inc. will post 11.01 earnings per share for the current fiscal year.

Synopsys announced that its board has authorized a share buyback program on Monday, October 5th that permits the company to repurchase $1 billion in outstanding shares. This repurchase authorization permits the semiconductor company to purchase up to 1.1% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's board of directors believes its shares are undervalued.

About Synopsys

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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