Atreides Management LP Makes New Investment in Synopsys, Inc. $SNPS

Key Points

• Atreides Management initiated a Synopsys position by purchasing 136,925 shares worth approximately $54.3 million, representing about 1.1% of its portfolio and 0.07% of Synopsys’ outstanding shares. Institutional investors collectively own 85.47% of the company.
• Analyst sentiment remains broadly positive: Synopsys has a “Moderate Buy” consensus rating and an average price target of $570.06, despite ratings ranging from “Strong Buy” to “Sell.” The company recently exceeded quarterly earnings and revenue expectations, reporting $2.28 billion in revenue, up 41.9% year over year.
• Valuation and execution remain key risks. Shares opened at $383.82, well below the average analyst target, while the stock carries a high P/E ratio of 88.85; investors are also watching Ansys integration, organic growth, upcoming earnings and recent CEO and CFO share sales.

Atreides Management LP bought a new stake in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 136,925 shares of the semiconductor company's stock, valued at approximately $54,288,000. Synopsys makes up approximately 1.1% of Atreides Management LP's investment portfolio, making the stock its 26th largest position. Atreides Management LP owned about 0.07% of Synopsys as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Sankala Group LLC purchased a new position in Synopsys during the fourth quarter valued at approximately $25,000. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in Synopsys during the fourth quarter worth $28,000. Caitong International Asset Management Co. Ltd purchased a new stake in Synopsys during the fourth quarter worth $28,000. IMG Wealth Management Inc. purchased a new position in shares of Synopsys in the 1st quarter valued at $30,000. Finally, Atlas Capital Advisors Inc. bought a new position in shares of Synopsys in the 4th quarter worth $32,000. Institutional investors own 85.47% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. Needham & Company LLC reiterated a "buy" rating and issued a $580.00 target price on shares of Synopsys in a research note on Thursday, May 28th. Stifel Nicolaus increased their price target on shares of Synopsys from $550.00 to $600.00 and gave the company a "buy" rating in a research report on Thursday, May 28th. BNP Paribas Exane lifted their price objective on shares of Synopsys from $425.00 to $450.00 and gave the stock an "underperform" rating in a research report on Thursday, May 28th. Benchmark began coverage on shares of Synopsys in a research note on Wednesday, July 15th. They set a "buy" rating and a $570.00 price objective for the company. Finally, Berenberg Bank set a $633.00 target price on shares of Synopsys in a research report on Wednesday, May 27th. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Synopsys currently has an average rating of "Moderate Buy" and an average price target of $570.06.

Insider Transactions at Synopsys

In other news, CFO Shelagh Glaser sold 3,394 shares of the firm's stock in a transaction dated 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 completion of 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of Synopsys stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $458.96, for a total value of $6,702,192.88. Following the sale, the chief executive officer directly owned 75,020 shares of the company's stock, valued at $34,431,179.20. This trade represents a 16.29% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 0.56% of the stock is currently owned by corporate insiders.

Trending Headlines about Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: AI partnerships are strengthening Synopsys’ growth story. The company introduced autonomous electronic-design-automation (EDA) workflows with Microsoft and AMD, including tools available for evaluation through Microsoft Discovery. Synopsys is positioning its agentic-AI platform to automate chip design from specifications through silicon, potentially increasing customer productivity and demand for its software. Synopsys Advances Agentic AI Chip Design with AMD and Microsoft
• Positive Sentiment: Intel 14A certification expands Synopsys’ advanced-process opportunity. Certified AI-powered EDA flows, multiphysics analysis, advanced-packaging support and IP such as PCIe 7.0 and 224G SerDes should help customers design for Intel Foundry’s next-generation 14A process. The collaboration builds on Synopsys’ existing support for Intel 18A and 18A-P and could support future licensing and services revenue. Synopsys and Intel Foundry Fast-Track Customer Readiness on Intel 14A
• Positive Sentiment: NVIDIA collaboration highlights potential productivity gains. Synopsys demonstrated autonomous verification and CAE workflows developed with NVIDIA technology, including a verification agent claimed to deliver up to 50-times faster time-to-validated RTL and additional coverage improvements. Analysts view agentic AI and the Ansys acquisition as important long-term catalysts, while maintaining generally bullish ratings. Synopsys Showcases Autonomous Engineering Workflows with NVIDIA Technology
• Neutral Sentiment: Investor attention is elevated ahead of earnings. Synopsys is scheduled to report fiscal third-quarter results on August 26. Its latest quarter produced $2.28 billion in revenue, up 41.9% year over year, although much of the increase reflected Ansys, while organic growth was more modest. The company’s full-year fiscal 2026 outlook remains constructive.
• Negative Sentiment: Valuation and execution concerns may be limiting upside. With a high earnings multiple and the stock still digesting its post-acquisition integration, investors may require stronger organic growth and evidence that AI products translate into material revenue. A coming earnings report also creates risk of profit-taking or disappointment.
• Negative Sentiment: Reported insider selling adds a minor cautionary signal. CEO Sassine Ghazi and CFO Shelagh Glaser sold shares during the past six months. These transactions may be routine, but they provide little support for sentiment while the stock remains volatile.

Synopsys Trading Down 1.3%

Shares of Synopsys stock opened at $383.82 on Wednesday. The firm's 50 day simple moving average is $451.74 and its two-hundred day simple moving average is $453.18. The firm has a market capitalization of $73.49 billion, a price-to-earnings ratio of 88.85, a PEG ratio of 2.29 and a beta of 1.22. Synopsys, Inc. has a 12-month low of $366.00 and a 12-month high of $651.73. The company has a current ratio of 1.43, a quick ratio of 1.32 and a debt-to-equity ratio of 0.33.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, topping the consensus estimate 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 the consensus estimate of $2.25 billion. During the same period in the previous year, the firm posted $3.67 earnings per share. The business's revenue for the quarter was up 41.9% compared to the same quarter last year. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. Analysts predict that Synopsys, Inc. will post 10.65 EPS for the current year.

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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