Advent International L.P. Acquires New Position in Synopsys, Inc. $SNPS

Key Points

• Advent International initiated a Synopsys position by purchasing 75,495 shares worth approximately $33.7 million, making SNPS its 18th-largest holding. Institutional investors collectively own 85.47% of the company.
• Synopsys reported quarterly revenue of $2.28 billion, up 41.9% year over year, and adjusted earnings of $3.35 per share, exceeding analyst expectations of $3.15. Shares opened at $408.79, up 3.6%.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $563.59, although targets range from $450 to $610. CEO and CFO stock sales were conducted under pre-arranged Rule 10b5-1 plans, primarily to cover tax obligations.

Advent International L.P. bought a new position in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 75,495 shares of the semiconductor company's stock, valued at approximately $33,676,000. Synopsys comprises about 0.2% of Advent International L.P.'s investment portfolio, making the stock its 18th largest holding.

Other hedge funds have also bought and sold shares of the company. Foronjy Financial LLC increased its stake in shares of Synopsys by 5.2% in the fourth quarter. Foronjy Financial LLC now owns 446 shares of the semiconductor company's stock worth $210,000 after acquiring an additional 22 shares during the period. AGH Wealth Advisors LLC grew its position in Synopsys by 4.4% during the 1st quarter. AGH Wealth Advisors LLC now owns 569 shares of the semiconductor company's stock worth $226,000 after purchasing an additional 24 shares during the period. Hardy Reed LLC grew its position in Synopsys by 0.8% during the 4th quarter. Hardy Reed LLC now owns 3,309 shares of the semiconductor company's stock worth $1,554,000 after purchasing an additional 25 shares during the period. Annis Gardner Whiting Capital Advisors LLC raised its stake in shares of Synopsys by 16.9% during the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 180 shares of the semiconductor company's stock valued at $85,000 after buying an additional 26 shares during the last quarter. Finally, MCF Advisors LLC raised its stake in shares of Synopsys by 17.8% during the 4th quarter. MCF Advisors LLC now owns 172 shares of the semiconductor company's stock valued at $81,000 after buying an additional 26 shares during the last quarter. Institutional investors and hedge funds own 85.47% of the company's stock.

Synopsys Trading Up 3.6%

Shares of SNPS opened at $408.79 on Wednesday. Synopsys, Inc. has a 52-week low of $366.00 and a 52-week high of $615.79. The stock has a market cap of $78.28 billion, a PE ratio of 94.63, a price-to-earnings-growth ratio of 2.32 and a beta of 1.23. The firm's fifty day moving average is $417.74 and its two-hundred day moving average is $439.85. The company has a quick ratio of 1.32, a current ratio of 1.43 and a debt-to-equity ratio of 0.33.

Synopsys (NASDAQ:SNPS - Get Free Report) last issued its earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, beating analysts' consensus estimates of $3.15 by $0.20. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. The business had revenue of $2.28 billion during the quarter, compared to analysts' expectations of $2.25 billion. During the same period in the prior year, the business earned $3.67 earnings per share. The company's quarterly revenue was up 41.9% compared to the same quarter last year. Research analysts forecast that Synopsys, Inc. will post 10.64 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of analysts recently issued reports on the stock. Stifel Nicolaus increased their price target on shares of Synopsys from $550.00 to $600.00 and gave the stock a "buy" rating in a report on Thursday, May 28th. Robert W. Baird set a $558.00 target price on Synopsys in a research note on Thursday, May 28th. Citigroup increased their target price on Synopsys from $600.00 to $610.00 and gave the company a "buy" rating in a research report on Thursday, May 28th. Wells Fargo & Company dropped their price target on shares of Synopsys from $535.00 to $450.00 and set an "equal weight" rating on the stock in a research note on Tuesday, August 11th. Finally, Rosenblatt Securities reissued a "buy" rating and issued a $575.00 price target on shares of Synopsys in a report on Tuesday. Eleven investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $563.59.

Insider Buying and Selling

In related news, CEO Sassine Ghazi sold 14,603 shares of Synopsys stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the transaction, the chief executive officer owned 75,020 shares in the company, valued at approximately $34,431,179.20. This trade represents a 16.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Shelagh Glaser sold 3,394 shares of the business's stock in a transaction on Friday, June 12th. The stock was sold at an average price of $450.02, for a total value of $1,527,367.88. Following the transaction, the chief financial officer directly owned 14,358 shares in the company, valued at $6,461,387.16. This trade represents a 19.12% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.56% of the stock is owned by corporate insiders.

Synopsys Company Profile

Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.

In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.

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