Bank of America Corp DE Makes New $539.99 Million Investment in Synopsys, Inc. $SNPS

Key Points

• Bank of America purchased 1.21 million Synopsys shares valued at approximately $540 million, acquiring a 0.63% stake. Institutional investors collectively own 85.47% of the company.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $562.67; ratings include 13 Buys, four Holds, and one Sell.
• Synopsys exceeded quarterly expectations, reporting $3.91 in EPS and $2.48 billion in revenue, with revenue up 42.4% year over year. Meanwhile, insider Aart de Geus sold 24,641 shares worth about $10.3 million under a Rule 10b5-1 plan.

Bank of America Corp DE purchased a new position in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 1,210,540 shares of the semiconductor company's stock, valued at approximately $539,986,000. Bank of America Corp DE owned approximately 0.63% of Synopsys as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds also recently made changes to their positions in the company. BlackRock Inc. bought a new stake in shares of Synopsys in the 2nd quarter valued at about $7,228,099,000. State Street Corp grew its position in shares of Synopsys by 0.3% during the 4th quarter. State Street Corp now owns 8,788,890 shares of the semiconductor company's stock worth $4,128,317,000 after buying an additional 28,532 shares during the period. Geode Capital Management LLC increased its stake in Synopsys by 1.3% in the fourth quarter. Geode Capital Management LLC now owns 4,310,846 shares of the semiconductor company's stock valued at $2,017,256,000 after purchasing an additional 54,329 shares in the last quarter. Van ECK Associates Corp raised its stake in Synopsys by 17.0% during the 4th quarter. Van ECK Associates Corp now owns 2,593,619 shares of the semiconductor company's stock worth $1,218,275,000 after buying an additional 376,711 shares during the period. Finally, Assenagon Asset Management S.A. lifted its holdings in shares of Synopsys by 39.5% in the 2nd quarter. Assenagon Asset Management S.A. now owns 2,455,402 shares of the semiconductor company's stock worth $1,095,281,000 after purchasing an additional 695,146 shares in the last quarter. Institutional investors and hedge funds own 85.47% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the company. Rosenblatt Securities reaffirmed a "buy" rating and set a $575.00 target price on shares of Synopsys in a research report on Tuesday, August 25th. Citigroup increased their target price on Synopsys from $600.00 to $610.00 and gave the stock a "buy" rating in a research report on Thursday, May 28th. Weiss Ratings cut shares of Synopsys from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday. Morgan Stanley decreased their target price 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. Finally, Needham & Company LLC restated a "buy" rating and set a $580.00 price objective on shares of Synopsys in a research report on Thursday, August 27th. Thirteen investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $562.67.

Insider Activity

In related news, insider Aart de Geus sold 24,641 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $419.44, for a total value of $10,335,421.04. Following the sale, the insider owned 120,443 shares in the company, valued at approximately $50,518,611.92. This trade represents a 16.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 74,641 shares of company stock worth $32,518,171. Company insiders own 0.56% of the company's stock.

Synopsys Price Performance

Shares of NASDAQ SNPS opened at $367.70 on Wednesday. Synopsys, Inc. has a 1 year low of $362.55 and a 1 year high of $539.48. The stock has a market capitalization of $70.47 billion, a P/E ratio of 64.96, a P/E/G ratio of 2.09 and a beta of 1.23. The company's 50-day moving average is $404.70 and its 200 day moving average is $437.13. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.34 and a quick ratio of 1.24.

Synopsys (NASDAQ:SNPS - Get Free Report) last issued its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.67 by $0.24. The company had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.44 billion. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. Synopsys's quarterly revenue was up 42.4% compared to the same quarter last year. During the same period last year, the business earned $3.39 EPS. 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, sell-side analysts expect that Synopsys, Inc. will post 10.97 earnings per share for the current year.

Synopsys Profile

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and related services. Its products help semiconductor and electronics companies design, verify, test and manufacture integrated circuits and complex electronic systems.

The company's EDA portfolio includes tools for digital and analog design, simulation, verification, physical implementation, signoff and manufacturing preparation. Synopsys also provides reusable semiconductor IP, including processor cores, interface technologies, embedded memories and security-related components, which customers can incorporate into system-on-chip designs.

Synopsys additionally offers software integrity and application security solutions that help organizations identify and manage vulnerabilities and risks in the software development lifecycle.

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