3,091 Shares of Synopsys, Inc. $SNPS Bought by Stableford Capital II LLC

Key Points

• Stableford Capital II LLC opened a new Synopsys position by purchasing 3,091 shares valued at approximately $1.34 million. Institutional investors collectively own 85.47% of the company.
• Analyst sentiment remains broadly positive, with an average “Moderate Buy” rating and a consensus price target of $584.11. Recent target increases and AI-related growth prospects support the favorable outlook, although valuation remains a concern.
• Synopsys reported quarterly revenue of $2.48 billion, up 42.4% year over year, and adjusted EPS of $3.91, beating expectations. The board also authorized a $1 billion share buyback, while recent insider selling and the stock’s roughly 88 P/E ratio create potential risks.

Stableford Capital II LLC purchased a new position in Synopsys, Inc. (NASDAQ:SNPS - Free Report) during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 3,091 shares of the semiconductor company's stock, valued at approximately $1,344,000.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Synopsys in the 2nd quarter worth $747,400,000. Man Group plc purchased a new stake in Synopsys during the second quarter valued at about $55,900,000. Nykredit A S acquired a new stake in Synopsys during the second quarter worth about $23,158,000. Bank of America Corp DE acquired a new stake in Synopsys during the second quarter worth about $539,986,000. Finally, Integrated Wealth Concepts LLC raised its holdings in shares of Synopsys by 88.6% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 6,816 shares of the semiconductor company's stock worth $3,040,000 after purchasing an additional 3,202 shares during the period. Hedge funds and other institutional investors own 85.47% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Piper Sandler upgraded Synopsys from a "neutral" rating to an "overweight" rating and boosted their target price for the stock from $450.00 to $550.00 in a report on Tuesday, June 23rd. Rosenblatt Securities raised their price objective on Synopsys from $575.00 to $620.00 and gave the company a "buy" rating in a research report on Thursday, October 1st. Morgan Stanley reduced their price objective on Synopsys from $525.00 to $500.00 and set an "equal weight" rating on the stock in a research note on Wednesday, August 19th. Benchmark reaffirmed a "buy" rating and issued a $570.00 target price on shares of Synopsys in a research report on Thursday, August 27th. Finally, Zacks Research upgraded Synopsys from a "hold" rating to a "strong-buy" rating in a research note on Friday, October 2nd. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $584.11.

Synopsys Stock Performance

Shares of SNPS stock opened at $497.75 on Friday. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.34 and a quick ratio of 1.24. The company's fifty day moving average price is $417.52 and its two-hundred day moving average price is $438.50. The firm has a market capitalization of $95.39 billion, a P/E ratio of 87.94, a P/E/G ratio of 2.05 and a beta of 1.21. Synopsys, Inc. has a 12 month low of $362.55 and a 12 month high of $539.48.

Synopsys (NASDAQ:SNPS - Get Free Report) last announced 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 return on equity of 6.24% and a net margin of 11.43%.The company had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.44 billion. During the same period last year, the firm earned $3.39 earnings per share. The company'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. On average, research analysts anticipate that Synopsys, Inc. will post 10.97 earnings per share for the current fiscal year.

Synopsys declared that its Board of Directors has authorized a stock buyback program on Monday, October 5th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the semiconductor company to purchase up to 1.1% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

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 transaction of $574,882.88. Following the completion of the transaction, the insider directly owned 16,534 shares in the company, valued at approximately $8,308,665.68. This represents a 6.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Aart de Geus sold 24,641 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $419.44, for a total transaction of $10,335,421.04. Following the sale, the insider directly owned 120,443 shares of the company's stock, valued at $50,518,611.92. The trade was a 16.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 102,559 shares of company stock worth $44,607,141 in the last quarter. Company insiders own 0.56% of the company's stock.

Key Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Bank of America analyst Vivek Arya reiterated a Buy rating and $600 price target. The analyst cited Synopsys’ AI-driven growth prospects, its strategic collaboration with OpenAI and the company’s $1 billion share-repurchase authorization. Bank of America reiterates Buy rating
• Positive Sentiment: Investors continue to view Synopsys as a key beneficiary of rising AI-chip complexity. Its EDA software is used to design and verify advanced chips, while relationships with OpenAI, Amazon and Nvidia could expand long-term revenue opportunities and support demand for AI-focused design tools.
• Positive Sentiment: The board’s $1 billion buyback authorization, representing up to approximately 1.1% of outstanding shares, could support earnings per share and signal management’s confidence in the company’s valuation.
• Positive Sentiment: Recent operating momentum remains strong: Synopsys reported quarterly adjusted EPS of $3.91 versus $3.67 expected and revenue of $2.48 billion versus $2.44 billion expected. Revenue increased 42.4% year over year, reinforcing the AI and semiconductor-design growth thesis.
• Neutral Sentiment: Analyst sentiment is broadly favorable. BofA maintained a $600 target, while recent targets include $605 from KeyBanc and $640 from Deutsche Bank. However, the average target of roughly $584 suggests more limited upside from current levels, and analysts remain divided on valuation.
• Neutral Sentiment: A report says Synopsys plans to explore working with Chinese AI laboratories on chip-design technology. Any commercial opportunity could broaden growth, but potential U.S.-China technology restrictions create regulatory and execution uncertainty. Synopsys and Chinese AI labs report
• Negative Sentiment: Insider selling may weigh on sentiment. Janet Lee sold 1,144 shares for approximately $575,000, while CFO Sudhindra Kankanwadi has also sold shares. These transactions do not necessarily signal deteriorating fundamentals, but they add an overhang after the stock’s strong recent advance. Synopsys insider selling
• Negative Sentiment: At roughly 88 times earnings, SNPS carries a demanding valuation. High expectations, acquisition-related debt and concerns about slowing core EDA growth leave the stock vulnerable to profit-taking if future results or guidance fail to exceed expectations.

About Synopsys

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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