Deepwater Asset Management LLC Acquires New Stake in Synopsys, Inc. $SNPS

Key Points

• Deepwater Asset Management acquired 3,551 Synopsys shares in the second quarter, worth approximately $1.58 million. Institutional investors collectively own 85.47% of the company.
• Synopsys shares opened at $404.41, down 2.1%, and remain well below their 52-week high of $624.82. The company recently exceeded quarterly earnings and revenue estimates, with revenue rising 41.9% year over year.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $565.06, although targets range from $450 to $580. Meanwhile, the CEO and CFO sold shares through pre-arranged plans primarily to cover tax obligations.

Deepwater Asset Management LLC bought a new position in Synopsys, Inc. (NASDAQ:SNPS - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 3,551 shares of the semiconductor company's stock, valued at approximately $1,584,000.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Sankala Group LLC purchased a new stake in Synopsys during the fourth quarter valued at about $25,000. Elevation Wealth Partners LLC increased its stake in shares of Synopsys by 96.4% in the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company's stock worth $25,000 after purchasing an additional 27 shares in the last quarter. IMG Wealth Management Inc. bought a new stake in shares of Synopsys in the second quarter valued at approximately $28,000. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Synopsys during the 4th quarter valued at approximately $28,000. Finally, Atlas Capital Advisors Inc. purchased a new position in Synopsys in the 4th quarter valued at approximately $32,000. Institutional investors own 85.47% of the company's stock.

Synopsys Trading Down 2.1%

Shares of SNPS opened at $404.41 on Wednesday. Synopsys, Inc. has a 1-year low of $366.00 and a 1-year high of $624.82. The company has a market capitalization of $77.44 billion, a P/E ratio of 93.61, a P/E/G ratio of 2.48 and a beta of 1.23. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.43 and a quick ratio of 1.32. The firm's 50 day simple moving average is $423.21 and its 200 day simple moving average is $441.54.

Synopsys (NASDAQ:SNPS - Get Free Report) last issued its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.15 by $0.20. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The firm had revenue of $2.28 billion during the quarter, compared to analyst estimates of $2.25 billion. During the same quarter in the previous year, the company posted $3.67 earnings per share. The company's revenue 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. Sell-side analysts forecast that Synopsys, Inc. will post 10.65 earnings per share for the current fiscal year.

Analysts Set New Price Targets

SNPS has been the subject of a number of analyst reports. Wells Fargo & Company cut their price target on Synopsys from $535.00 to $450.00 and set an "equal weight" rating for the company in a report on Tuesday, August 11th. Rosenblatt Securities boosted their price objective on Synopsys from $530.00 to $575.00 and gave the company a "buy" rating in a research note on Tuesday, May 26th. Weiss Ratings restated a "hold (c-)" rating on shares of Synopsys in a research note on Monday, June 8th. Needham & Company LLC reiterated a "buy" rating and set a $580.00 price target on shares of Synopsys in a research report on Thursday, May 28th. Finally, Robert W. Baird set a $558.00 price objective on shares of Synopsys in a research report on Thursday, May 28th. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $565.06.

Insider Buying and Selling at Synopsys

In other Synopsys news, CEO Sassine Ghazi sold 14,603 shares of the company's 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 represents a 16.29% decrease in their position. The transaction was disclosed in a legal filing 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. 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 stock in a transaction that occurred 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 completion of the transaction, the chief financial officer directly owned 14,358 shares of the company's stock, valued at $6,461,387.16. This 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 currently 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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