DSM Capital Partners LLC Lowers Holdings in Synopsys, Inc. $SNPS

Key Points

• DSM Capital Partners LLC reduced its holdings in Synopsys, Inc. by 15.4%, now owning 101,782 shares valued at approximately $52.2 million, making it the firm's 25th largest investment.
• Synopsys reported a significant earnings miss for the last quarter, with an EPS of $2.30 compared to analysts' expectations of $3.75, leading to a 9.4% decline in stock price.
• Multiple analysts have downgraded their ratings and price targets for Synopsys, with Wells Fargo lowering its target from $630 to $550, while the consensus rating remains a "Hold."

DSM Capital Partners LLC decreased its stake in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 15.4% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 101,782 shares of the semiconductor company's stock after selling 18,457 shares during the quarter. Synopsys comprises about 0.8% of DSM Capital Partners LLC's investment portfolio, making the stock its 25th biggest holding. DSM Capital Partners LLC owned about 0.07% of Synopsys worth $52,182,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also added to or reduced their stakes in the stock. Aberdeen Group plc raised its stake in Synopsys by 2.7% during the second quarter. Aberdeen Group plc now owns 127,534 shares of the semiconductor company's stock valued at $65,420,000 after buying an additional 3,359 shares during the last quarter. Davis Rea LTD. raised its stake in Synopsys by 0.3% during the second quarter. Davis Rea LTD. now owns 23,943 shares of the semiconductor company's stock valued at $12,275,000 after buying an additional 75 shares during the last quarter. PDS Planning Inc raised its stake in Synopsys by 9.8% during the second quarter. PDS Planning Inc now owns 1,077 shares of the semiconductor company's stock valued at $552,000 after buying an additional 96 shares during the last quarter. Fourpath Capital Management LLC purchased a new position in Synopsys during the second quarter valued at $234,000. Finally, Commerzbank Aktiengesellschaft FI raised its stake in Synopsys by 452.3% during the second quarter. Commerzbank Aktiengesellschaft FI now owns 10,808 shares of the semiconductor company's stock valued at $5,542,000 after buying an additional 8,851 shares during the last quarter. Hedge funds and other institutional investors own 85.47% of the company's stock.

Insider Transactions at Synopsys

In other news, Director Robert G. Painter acquired 350 shares of Synopsys stock in a transaction that occurred on Thursday, September 11th. The stock was bought at an average price of $425.44 per share, for a total transaction of $148,904.00. Following the completion of the transaction, the director owned 2,291 shares in the company, valued at $974,683.04. The trade was a 18.03% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Sassine Ghazi sold 11,366 shares of the business's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $589.01, for a total value of $6,694,687.66. Following the sale, the chief executive officer directly owned 71,615 shares of the company's stock, valued at $42,181,951.15. This represents a 13.70% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 30,894 shares of company stock worth $16,760,783 in the last three months. 0.62% of the stock is owned by insiders.

Synopsys Stock Down 9.4%

Synopsys stock opened at $438.92 on Friday. The stock has a market cap of $81.53 billion, a PE ratio of 34.45, a price-to-earnings-growth ratio of 5.34 and a beta of 1.10. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.51 and a current ratio of 1.62. Synopsys, Inc. has a one year low of $365.74 and a one year high of $651.73. The stock has a fifty day moving average of $544.01 and a 200 day moving average of $510.12.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted its quarterly earnings data on Tuesday, September 9th. The semiconductor company reported $2.30 EPS for the quarter, missing analysts' consensus estimates of $3.75 by ($1.45). The firm had revenue of $1.74 billion for the quarter, compared to analysts' expectations of $1.77 billion. Synopsys had a net margin of 31.04% and a return on equity of 10.82%. The firm's revenue was up 14.0% compared to the same quarter last year. During the same quarter last year, the company posted $3.43 EPS. Synopsys has set its FY 2025 guidance at 12.760-12.800 EPS. Q4 2025 guidance at 2.760-2.80 EPS. As a group, sell-side analysts predict that Synopsys, Inc. will post 10.64 EPS for the current year.

Wall Street Analyst Weigh In

SNPS has been the subject of several recent analyst reports. Baird R W cut Synopsys from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 10th. Needham & Company LLC reduced their price objective on Synopsys from $660.00 to $550.00 and set a "buy" rating for the company in a report on Wednesday, September 10th. Wells Fargo & Company reduced their price objective on Synopsys from $630.00 to $550.00 and set an "equal weight" rating for the company in a report on Wednesday, September 10th. Morgan Stanley reduced their price objective on Synopsys from $715.00 to $510.00 and set an "overweight" rating for the company in a report on Thursday, September 11th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Synopsys in a report on Wednesday. Eleven research analysts have rated the stock with a Buy rating, five have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $575.31.

Synopsys Profile

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.

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