Evolutionary Tree Capital Management LLC Makes New Investment in Synopsys, Inc. (NASDAQ:SNPS)

Key Points

• Evolutionary Tree Capital Management LLC has made a new investment in Synopsys, Inc., acquiring 7,997 shares valued at approximately $3.43 million, representing about 4% of their investment portfolio.
• CEO Sassine Ghazi and CFO Shelagh Glaser sold significant portions of their shares recently, indicating insider activity with Ghazi reducing ownership by 13.70% and Glaser by 32.34%.
• Synopsys reported strong earnings with $3.67 earnings per share, exceeding analysts' expectations, and its stock has an average price target of $622.33 from analysts.

Evolutionary Tree Capital Management LLC purchased a new position in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 7,997 shares of the semiconductor company's stock, valued at approximately $3,430,000. Synopsys accounts for approximately 4.0% of Evolutionary Tree Capital Management LLC's investment portfolio, making the stock its 11th largest holding.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Argent Trust Co raised its stake in shares of Synopsys by 2.8% in the first quarter. Argent Trust Co now owns 856 shares of the semiconductor company's stock valued at $367,000 after acquiring an additional 23 shares during the last quarter. L & S Advisors Inc grew its stake in shares of Synopsys by 3.4% during the first quarter. L & S Advisors Inc now owns 3,015 shares of the semiconductor company's stock valued at $1,293,000 after purchasing an additional 100 shares during the last quarter. Manchester Capital Management LLC grew its stake in shares of Synopsys by 14.9% during the first quarter. Manchester Capital Management LLC now owns 323 shares of the semiconductor company's stock valued at $139,000 after purchasing an additional 42 shares during the last quarter. CCLA Investment Management grew its stake in shares of Synopsys by 1.4% during the first quarter. CCLA Investment Management now owns 289,004 shares of the semiconductor company's stock valued at $123,878,000 after purchasing an additional 3,957 shares during the last quarter. Finally, Cheviot Value Management LLC bought a new stake in shares of Synopsys during the first quarter valued at approximately $542,000. Institutional investors own 85.47% of the company's stock.

Insider Buying and Selling

In other Synopsys news, CEO Sassine Ghazi sold 11,366 shares of Synopsys stock in a transaction on Monday, June 2nd. The shares were sold at an average price of $457.93, for a total transaction of $5,204,832.38. Following the completion of the transaction, the chief executive officer directly owned 71,589 shares of the company's stock, valued at $32,782,750.77. The trade was a 13.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Shelagh Glaser sold 7,310 shares of Synopsys stock in a transaction on Friday, June 6th. The stock was sold at an average price of $485.72, for a total transaction of $3,550,613.20. Following the transaction, the chief financial officer directly owned 15,291 shares of the company's stock, valued at approximately $7,427,144.52. This trade represents a 32.34% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 27,686 shares of company stock worth $13,001,048. Insiders own 0.62% of the company's stock.

Synopsys Stock Performance

Shares of SNPS stock opened at $618.65 on Monday. The company's fifty day simple moving average is $529.64 and its 200-day simple moving average is $491.19. The company has a quick ratio of 6.85, a current ratio of 7.02 and a debt-to-equity ratio of 1.01. The firm has a market cap of $95.99 billion, a PE ratio of 44.67, a P/E/G ratio of 4.09 and a beta of 1.15. Synopsys, Inc. has a 12 month low of $365.74 and a 12 month high of $651.73.

Synopsys (NASDAQ:SNPS - Get Free Report) last issued its earnings results on Wednesday, May 28th. The semiconductor company reported $3.67 earnings per share for the quarter, topping analysts' consensus estimates of $3.40 by $0.27. The business had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.60 billion. Synopsys had a net margin of 34.77% and a return on equity of 17.09%. The firm's revenue for the quarter was up 10.3% on a year-over-year basis. During the same period in the previous year, the company earned $3.00 earnings per share. Equities research analysts expect that Synopsys, Inc. will post 10.64 EPS for the current fiscal year.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. Rosenblatt Securities increased their price target on shares of Synopsys from $625.00 to $650.00 and gave the company a "buy" rating in a research note on Friday, July 25th. Mizuho lowered their target price on shares of Synopsys from $650.00 to $600.00 and set an "outperform" rating for the company in a report on Tuesday, April 15th. Piper Sandler lifted their target price on shares of Synopsys from $615.00 to $660.00 and gave the stock an "overweight" rating in a report on Monday, July 21st. The Goldman Sachs Group started coverage on shares of Synopsys in a report on Thursday, July 10th. They set a "buy" rating and a $620.00 target price for the company. Finally, Stifel Nicolaus set a $550.00 target price on shares of Synopsys in a report on Monday, April 28th. One analyst has rated the stock with a hold rating and thirteen have assigned a buy rating to the company's stock. According to MarketBeat, Synopsys currently has an average rating of "Moderate Buy" and an average price target of $622.33.

Synopsys Company 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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