Eminence Capital LP Makes New Investment in Synopsys, Inc. $SNPS

Key Points

• Eminence Capital LP acquired a new stake of 163,429 shares in Synopsys (NASDAQ:SNPS), valued at about $80.63 million and representing roughly 0.09% of the company at quarter-end.
• Synopsys beat quarterly expectations with $3.77 EPS (vs. $3.56 est.) and $2.41 billion in revenue, up 65.6% year‑over‑year, and set FY2026 guidance of $14.38–$14.46 EPS.
• Analysts are mixed (average rating: Hold — 8 Buy, 8 Hold, 1 Sell; average target $531), while institutional ownership is high at 85.47% and insiders have been net sellers (insiders own 0.56%).

Eminence Capital LP acquired a new stake in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) during the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 163,429 shares of the semiconductor company's stock, valued at approximately $80,634,000. Eminence Capital LP owned 0.09% of Synopsys at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Lionshead Wealth Management LLC grew its stake in shares of Synopsys by 1.9% in the 2nd quarter. Lionshead Wealth Management LLC now owns 914 shares of the semiconductor company's stock valued at $469,000 after purchasing an additional 17 shares during the period. YANKCOM Partnership grew its stake in Synopsys by 3.3% during the second quarter. YANKCOM Partnership now owns 537 shares of the semiconductor company's stock worth $275,000 after buying an additional 17 shares during the last quarter. Manchester Capital Management LLC increased its holdings in Synopsys by 5.3% during the 2nd quarter. Manchester Capital Management LLC now owns 340 shares of the semiconductor company's stock valued at $174,000 after purchasing an additional 17 shares in the last quarter. Advisors Capital Management LLC increased its stake in shares of Synopsys by 2.3% in the second quarter. Advisors Capital Management LLC now owns 862 shares of the semiconductor company's stock valued at $442,000 after buying an additional 19 shares in the last quarter. Finally, Rothschild Investment LLC raised its holdings in shares of Synopsys by 15.9% in the second quarter. Rothschild Investment LLC now owns 153 shares of the semiconductor company's stock valued at $78,000 after buying an additional 21 shares during the last quarter. Institutional investors own 85.47% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on SNPS. Needham & Company LLC reissued a "buy" rating on shares of Synopsys in a report on Thursday, February 26th. Wells Fargo & Company lowered their target price on Synopsys from $500.00 to $450.00 and set an "equal weight" rating for the company in a research note on Thursday, February 26th. Piper Sandler lowered their price objective on Synopsys from $520.00 to $430.00 and set a "neutral" rating for the company in a research report on Thursday, February 26th. HSBC cut Synopsys from a "buy" rating to a "hold" rating and set a $455.00 price objective for the company. in a report on Friday, February 20th. Finally, Bank of America raised shares of Synopsys from an "underperform" rating to a "neutral" rating and reduced their target price for the company from $525.00 to $500.00 in a research note on Monday, December 8th. Eight investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $531.00.

Synopsys Price Performance

Shares of SNPS opened at $412.63 on Friday. The company has a 50 day moving average of $461.93 and a 200-day moving average of $463.65. Synopsys, Inc. has a twelve month low of $365.74 and a twelve month high of $651.73. The company has a quick ratio of 1.26, a current ratio of 1.36 and a debt-to-equity ratio of 0.33. The stock has a market capitalization of $79.04 billion, a P/E ratio of 64.07, a P/E/G ratio of 3.36 and a beta of 1.15.

Synopsys (NASDAQ:SNPS - Get Free Report) last issued its quarterly earnings results on Wednesday, February 25th. The semiconductor company reported $3.77 EPS for the quarter, beating the consensus estimate of $3.56 by $0.21. Synopsys had a return on equity of 6.83% and a net margin of 13.76%.The firm had revenue of $2.41 billion during the quarter, compared to analysts' expectations of $2.39 billion. During the same period in the prior year, the firm posted $3.03 earnings per share. The business's quarterly revenue was up 65.6% compared to the same quarter last year. Synopsys has set its FY 2026 guidance at 14.380-14.460 EPS and its Q2 2026 guidance at 3.110-3.170 EPS. As a group, equities research analysts forecast that Synopsys, Inc. will post 10.64 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Janet Lee sold 250 shares of the company's stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $530.00, for a total value of $132,500.00. Following the transaction, the insider owned 11,959 shares in the company, valued at approximately $6,338,270. This represents a 2.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Shelagh Glaser sold 3,657 shares of the stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $460.77, for a total transaction of $1,685,035.89. Following the transaction, the chief financial officer owned 17,842 shares in the company, valued at approximately $8,221,058.34. The trade was a 17.01% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 4,157 shares of company stock valued at $1,945,036. Company insiders own 0.56% of the company's stock.

About Synopsys

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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