283,841 Synopsys, Inc. $SNPS Shares Sold by Vontobel Holding Ltd.

Key Points

• Vontobel Holding reduced its Synopsys stake by 40.9%, selling 283,841 shares during the third quarter while retaining 409,684 shares worth approximately $178.2 million. Institutional investors own 85.47% of the company.
• Synopsys shares fell 2.9% to $454.63, despite the company beating quarterly earnings and revenue estimates and reporting 42.4% year-over-year revenue growth.
• The company authorized a $1 billion share-repurchase program, while recent insider sales totaled 117,163 shares worth $51.4 million. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $571.78.

Vontobel Holding Ltd. lowered its position in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 40.9% during the third quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 409,684 shares of the semiconductor company's stock after selling 283,841 shares during the quarter. Vontobel Holding Ltd. owned approximately 0.21% of Synopsys worth $178,188,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in shares of Synopsys during the second quarter worth $7,228,099,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Synopsys in the second quarter valued at $747,400,000. Bank of New York Mellon Corp acquired a new position in Synopsys in the second quarter valued at $692,074,000. Bank of America Corp DE acquired a new position in Synopsys in the second quarter valued at $539,986,000. Finally, Legal & General Group Plc acquired a new position in Synopsys in the second quarter valued at $491,923,000. 85.47% of the stock is owned by hedge funds and other institutional investors.

Synopsys Trading Down 2.9%

Synopsys stock traded down $13.48 during midday trading on Friday, reaching $454.63. The stock had a trading volume of 2,515,910 shares, compared to its average volume of 2,657,122. Synopsys, Inc. has a twelve month low of $362.55 and a twelve month high of $539.48. The stock has a market capitalization of $87.13 billion, a PE ratio of 80.32, a price-to-earnings-growth ratio of 1.91 and a beta of 1.21. 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's 50-day simple moving average is $427.56 and its 200 day simple moving average is $441.51.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.67 by $0.24. The firm 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 quarterly revenue was up 42.4% compared to the same quarter last year. During the same quarter in the previous year, the business 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 expect that Synopsys, Inc. will post 10.97 EPS for the current year.

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

Insider Buying and Selling at Synopsys

In related news, insider Aart de Geus sold 25,000 shares of the firm's stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $441.76, for a total value of $11,044,000.00. Following the transaction, the insider owned 120,421 shares in the company, valued at approximately $53,197,180.96. This trade represents a 17.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Sudhindra Kankanwadi sold 9,170 shares of Synopsys stock in a transaction that occurred on Tuesday, October 6th. The shares were sold at an average price of $500.00, for a total transaction of $4,585,000.00. Following the transaction, the chief financial officer directly owned 22,717 shares in the company, valued at approximately $11,358,500. This trade represents a 28.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 117,163 shares of company stock worth $51,366,457. 0.56% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on SNPS shares. Benchmark reissued a "buy" rating and issued a $570.00 price target on shares of Synopsys in a research note on Thursday, August 27th. Morgan Stanley dropped their price objective on shares of Synopsys from $525.00 to $500.00 and set an "equal weight" rating for the company in a research note on Wednesday, August 19th. HSBC lowered shares of Synopsys from a "buy" rating to a "reduce" rating in a report on Friday, September 25th. Rothschild & Co Redburn cut their price objective on shares of Synopsys from $560.00 to $550.00 and set a "buy" rating on the stock in a report on Wednesday, September 23rd. Finally, BNP Paribas Exane raised their target price on shares of Synopsys from $420.00 to $475.00 and gave the stock a "neutral" rating in a research report on Thursday, October 1st. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $571.78.

Synopsys 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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