China Universal Asset Management Co. Ltd. Acquires 2,081 Shares of Synopsys, Inc. $SNPS

Key Points

• China Universal Asset Management increased its Synopsys stake by 19.2% in the third quarter, acquiring 2,081 shares for a total holding of 12,908 shares valued at approximately $5.36 million. Institutional investors collectively own 85.47% of SNPS.
• Synopsys reported quarterly revenue of $2.48 billion, up 42.4% year over year, and adjusted earnings of $3.91 per share, exceeding analyst expectations. The company also authorized a $1 billion share-repurchase program.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $575, although insiders sold 117,163 shares worth about $51.4 million over the past three months. SNPS opened at $490.19, up 1.7%.

China Universal Asset Management Co. Ltd. lifted its stake in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 19.2% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 12,908 shares of the semiconductor company's stock after acquiring an additional 2,081 shares during the quarter. China Universal Asset Management Co. Ltd.'s holdings in Synopsys were worth $5,358,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also added to or reduced their stakes in SNPS. Elevation Wealth Partners LLC raised its position in shares of Synopsys by 96.4% in the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company's stock worth $25,000 after acquiring an additional 27 shares in the last quarter. Osbon Capital Management LLC bought a new stake in shares of Synopsys in the 2nd quarter valued at $25,000. IMG Wealth Management Inc. bought a new stake in shares of Synopsys in the 2nd quarter valued at $28,000. GK Wealth Management LLC acquired a new position in shares of Synopsys during the 3rd quarter valued at $28,000. Finally, Geneos Wealth Management Inc. lifted its position in shares of Synopsys by 151.5% during the 1st quarter. Geneos Wealth Management Inc. now owns 83 shares of the semiconductor company's stock valued at $33,000 after acquiring an additional 50 shares during the period. 85.47% of the stock is currently owned by institutional investors.

Insider Activity

In related news, insider Aart de Geus sold 24,641 shares of the company'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 transaction, the insider directly owned 120,443 shares in the company, valued at approximately $50,518,611.92. This represents a 16.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,604 shares of the stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $462.84, for a total transaction of $6,759,315.36. Following the completion of the transaction, the chief executive officer directly owned 76,865 shares in the company, valued at $35,576,196.60. The trade was a 15.97% 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. In the last three months, insiders sold 117,163 shares of company stock valued at $51,366,457. Corporate insiders own 0.56% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on SNPS. Robert W. Baird upgraded Synopsys from a "neutral" rating to an "outperform" rating and boosted their price objective for the company from $558.00 to $560.00 in a report on Thursday, August 27th. BNP Paribas Exane boosted their price target on shares of Synopsys from $420.00 to $475.00 and gave the company a "neutral" rating in a research note on Thursday, October 1st. Wells Fargo & Company upped their price objective on shares of Synopsys from $475.00 to $540.00 and gave the stock an "overweight" rating in a report on Thursday, October 1st. HSBC lowered shares of Synopsys from a "buy" rating to a "reduce" rating in a research note on Friday, September 25th. Finally, UBS Group set a $570.00 price objective on shares of Synopsys in a report on Thursday, August 27th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $575.00.

Synopsys Trading Up 1.7%

NASDAQ:SNPS opened at $490.19 on Friday. Synopsys, Inc. has a 52 week low of $362.55 and a 52 week high of $539.48. The firm has a 50-day moving average price of $436.08 and a two-hundred day moving average price of $443.95. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34. The firm has a market cap of $93.94 billion, a price-to-earnings ratio of 86.61, a price-to-earnings-growth ratio of 1.96 and a beta of 1.21.

Synopsys (NASDAQ:SNPS - Get Free Report) last released its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, beating analysts' consensus estimates of $3.67 by $0.24. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The firm had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.44 billion. During the same period in the prior year, the firm earned $3.39 EPS. The company's revenue was up 42.4% compared to the same quarter last year. 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, equities analysts expect that Synopsys, Inc. will post 11.01 earnings per share for the current fiscal year.

Synopsys announced that its Board of Directors has authorized a share buyback program on Monday, October 5th that allows the company to repurchase $1 billion in shares. This repurchase authorization allows the semiconductor company to buy up to 1.1% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's board believes its shares are undervalued.

Synopsys Company Profile

Synopsys, Inc is an electronic design automation (EDA) and semiconductor intellectual property company serving the global semiconductor and electronics industries. Its software helps engineers design, verify, test and manufacture advanced integrated circuits and electronic systems.

The company's products and services support digital and analog design, functional verification, design-for-test, manufacturing and semiconductor engineering workflows. Synopsys also provides reusable semiconductor IP, including processor cores, interface technologies, security solutions and other components used in system-on-chip designs.

In addition to its semiconductor design offerings, Synopsys provides software development and application security tools intended to help organizations identify and manage vulnerabilities and risks across the software development lifecycle.

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