HMS Capital Management LLC Reduces Position in Synopsys, Inc. $SNPS

Key Points

• HMS Capital Management LLC significantly reduced its stake in Synopsys, Inc. by 74.6%, owning only 738 shares after selling 2,169 shares in the first quarter, valuing its holdings at $316,000.
• Synopsys reported a 10.3% year-over-year increase in revenue for the recent quarter, with earnings per share (EPS) of $3.67, exceeding expectations of $3.40.
• Despite the stock's recent decline of 2.0%, analysts maintain a positive outlook, with the average price target for Synopsys shares set at $630.67.

HMS Capital Management LLC cut its position in Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 74.6% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 738 shares of the semiconductor company's stock after selling 2,169 shares during the quarter. HMS Capital Management LLC's holdings in Synopsys were worth $316,000 at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in the company. Cornerstone Planning Group LLC lifted its position in Synopsys by 275.0% during the 1st quarter. Cornerstone Planning Group LLC now owns 60 shares of the semiconductor company's stock worth $25,000 after acquiring an additional 44 shares during the period. Clal Insurance Enterprises Holdings Ltd lifted its position in Synopsys by 441.7% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 65 shares of the semiconductor company's stock worth $28,000 after acquiring an additional 53 shares during the period. Ameriflex Group Inc. acquired a new stake in Synopsys during the 4th quarter worth approximately $29,000. Cloud Capital Management LLC acquired a new stake in Synopsys during the 1st quarter worth approximately $36,000. Finally, Meeder Asset Management Inc. lifted its position in Synopsys by 33.3% during the 1st quarter. Meeder Asset Management Inc. now owns 104 shares of the semiconductor company's stock worth $45,000 after acquiring an additional 26 shares during the period. 85.47% of the stock is owned by institutional investors and hedge funds.

Synopsys Price Performance

NASDAQ SNPS traded up $8.35 during mid-day trading on Friday, hitting $606.52. The stock had a trading volume of 863,153 shares, compared to its average volume of 1,313,433. Synopsys, Inc. has a 52-week low of $365.74 and a 52-week high of $651.73. The company has a market cap of $94.11 billion, a price-to-earnings ratio of 43.79, a P/E/G ratio of 3.93 and a beta of 1.15. The company has a 50 day simple moving average of $570.29 and a 200 day simple moving average of $500.95. The company has a quick ratio of 6.85, a current ratio of 7.02 and a debt-to-equity ratio of 1.01.

Synopsys (NASDAQ:SNPS - Get Free Report) last released its quarterly earnings data on Wednesday, May 28th. The semiconductor company reported $3.67 earnings per share for the quarter, beating the consensus estimate of $3.40 by $0.27. Synopsys had a return on equity of 17.09% and a net margin of 34.77%.The firm had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.60 billion. During the same period last year, the business posted $3.00 EPS. Synopsys's quarterly revenue was up 10.3% on a year-over-year basis. Synopsys has set its FY 2025 guidance at 15.110-15.190 EPS. Q3 2025 guidance at 3.820-3.87 EPS. Equities analysts forecast that Synopsys, Inc. will post 10.64 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. Needham & Company LLC reaffirmed a "buy" rating and set a $660.00 price objective (up from $650.00) on shares of Synopsys in a research report on Tuesday, July 15th. The Goldman Sachs Group assumed coverage on Synopsys in a research report on Thursday, July 10th. They set a "buy" rating and a $620.00 price objective for the company. Bank of America increased their price objective on Synopsys from $575.00 to $625.00 and gave the stock a "buy" rating in a research report on Wednesday, July 16th. Stifel Nicolaus set a $550.00 price target on Synopsys in a report on Monday, April 28th. Finally, KeyCorp raised their price target on Synopsys from $540.00 to $610.00 and gave the company an "overweight" rating in a report on Thursday, July 10th. Twelve research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, Synopsys presently has a consensus rating of "Moderate Buy" and a consensus price target of $626.79.

Insider Activity at Synopsys

In related news, CEO Sassine Ghazi sold 11,366 shares of the firm's stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $457.93, for a total value 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. This trade represents a 13.70% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Shelagh Glaser sold 7,310 shares of the firm's stock in a transaction on Friday, June 6th. The stock was sold at an average price of $485.72, for a total value of $3,550,613.20. Following the transaction, the chief financial officer directly owned 15,291 shares of the company's stock, valued at $7,427,144.52. The trade was a 32.34% decrease in their position. The disclosure for this sale can be found here. Insiders sold 27,686 shares of company stock valued at $13,001,048 in the last ninety days. Corporate insiders own 0.62% of the company's stock.

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.