Applied Finance Capital Management LLC Makes New $797,000 Investment in Synopsys, Inc. (NASDAQ:SNPS)

Key Points

• Applied Finance Capital Management LLC acquired 1,858 shares of Synopsys, Inc. (NASDAQ:SNPS), valued at approximately $797,000 during the 1st quarter.
• Insider trading revealed significant stock sales by CFO Shelagh Glaser and CEO Sassine Ghazi, with Glaser selling 7,310 shares and Ghazi selling 11,366 shares, indicating a decrease in their ownership percentages.
• Several research firms have upgraded price targets for Synopsys, with analysts setting an average price target of $622.33 and maintaining a consensus rating of "Moderate Buy."

Applied Finance Capital Management LLC purchased a new stake in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 1,858 shares of the semiconductor company's stock, valued at approximately $797,000.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Cornerstone Planning Group LLC lifted its position in shares of Synopsys by 275.0% during the first quarter. Cornerstone Planning Group LLC now owns 60 shares of the semiconductor company's stock worth $25,000 after purchasing an additional 44 shares in the last quarter. Ameriflex Group Inc. acquired a new position in shares of Synopsys during the fourth quarter worth $29,000. Pilgrim Partners Asia Pte Ltd acquired a new position in shares of Synopsys during the fourth quarter worth $34,000. Cloud Capital Management LLC acquired a new position in shares of Synopsys during the first quarter worth $36,000. Finally, Hazlett Burt & Watson Inc. lifted its position in shares of Synopsys by 28.6% during the fourth quarter. Hazlett Burt & Watson Inc. now owns 90 shares of the semiconductor company's stock worth $44,000 after purchasing an additional 20 shares in the last quarter. 85.47% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, CRO Richard S. Mahoney sold 9,010 shares of the stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $471.21, for a total value of $4,245,602.10. Following the transaction, the executive owned 1,485 shares in the company, valued at approximately $699,746.85. This represents a 85.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Sassine Ghazi sold 11,366 shares of the stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $457.93, for a total value of $5,204,832.38. Following the completion of the transaction, the chief executive officer owned 71,589 shares in the company, valued at $32,782,750.77. This represents a 13.70% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 27,686 shares of company stock worth $13,001,048 in the last 90 days. Company insiders own 0.62% of the company's stock.

Analyst Ratings Changes

A number of research analysts have recently commented on SNPS shares. Rosenblatt Securities boosted their target price on shares of Synopsys from $625.00 to $650.00 and gave the stock a "buy" rating in a research report on Friday, July 25th. The Goldman Sachs Group started coverage on shares of Synopsys in a research note on Thursday, July 10th. They issued a "buy" rating and a $620.00 price target for the company. Bank of America lifted their price target on shares of Synopsys from $575.00 to $625.00 and gave the stock a "buy" rating in a research note on Wednesday, July 16th. Needham & Company LLC restated a "buy" rating and issued a $660.00 price target (up previously from $650.00) on shares of Synopsys in a research note on Tuesday, July 15th. Finally, Stifel Nicolaus set a $550.00 price target on shares of Synopsys in a research note on Monday, April 28th. One research analyst has rated the stock with a hold rating and thirteen have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $622.33.

Synopsys Price Performance

NASDAQ SNPS traded up $12.12 on Wednesday, reaching $647.93. The company's stock had a trading volume of 674,166 shares, compared to its average volume of 1,452,759. The stock has a market cap of $100.53 billion, a PE ratio of 46.70, a PEG ratio of 3.92 and a beta of 1.12. Synopsys, Inc. has a twelve month low of $365.74 and a twelve month high of $647.20. The company has a debt-to-equity ratio of 1.01, a quick ratio of 6.85 and a current ratio of 7.02. The firm's 50 day moving average is $521.77 and its two-hundred day moving average is $488.50.

Synopsys (NASDAQ:SNPS - Get Free Report) last issued its earnings results on Wednesday, May 28th. The semiconductor company reported $3.67 earnings per share for the quarter, beating analysts' consensus estimates of $3.40 by $0.27. The company had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.60 billion. Synopsys had a return on equity of 17.09% and a net margin of 34.77%. The firm's quarterly revenue was up 10.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.00 EPS. As a group, sell-side analysts predict that Synopsys, Inc. will post 10.64 EPS for the current year.

About Synopsys

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.