Hsbc Holdings PLC Boosts Stake in Synopsys, Inc. $SNPS

Key Points

• HSBC Holdings PLC increased its stake in Synopsys by 6.3% in the first quarter, ending with 330,412 shares valued at about $131 million.
• Several other institutional investors also added to their Synopsys positions, and 85.47% of the stock is now owned by institutions.
• Despite a recent 7.9% stock drop, analysts remain largely constructive: recent upgrades pushed the consensus rating to Moderate Buy with an average price target of about $570.

Hsbc Holdings PLC increased its position in Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 6.3% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 330,412 shares of the semiconductor company's stock after purchasing an additional 19,553 shares during the quarter. Hsbc Holdings PLC owned approximately 0.17% of Synopsys worth $130,982,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds also recently made changes to their positions in the company. Sowell Financial Services LLC raised its holdings in Synopsys by 2.0% in the fourth quarter. Sowell Financial Services LLC now owns 1,056 shares of the semiconductor company's stock worth $496,000 after purchasing an additional 21 shares in the last quarter. Natural Investments LLC boosted its holdings in shares of Synopsys by 4.6% during the 4th quarter. Natural Investments LLC now owns 482 shares of the semiconductor company's stock valued at $226,000 after buying an additional 21 shares in the last quarter. Financial Management Professionals Inc. boosted its holdings in shares of Synopsys by 7.0% during the 4th quarter. Financial Management Professionals Inc. now owns 335 shares of the semiconductor company's stock valued at $157,000 after buying an additional 22 shares in the last quarter. Foronjy Financial LLC grew its position in shares of Synopsys by 5.2% in the 4th quarter. Foronjy Financial LLC now owns 446 shares of the semiconductor company's stock worth $210,000 after buying an additional 22 shares during the period. Finally, AGH Wealth Advisors LLC increased its stake in shares of Synopsys by 4.4% in the 1st quarter. AGH Wealth Advisors LLC now owns 569 shares of the semiconductor company's stock worth $226,000 after acquiring an additional 24 shares in the last quarter. 85.47% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other Synopsys news, CFO Shelagh Glaser sold 3,394 shares of Synopsys stock in a transaction 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 sale, the chief financial officer owned 14,358 shares of the company's stock, valued at approximately $6,461,387.16. This trade represents a 19.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of Synopsys stock in a transaction on Monday, June 15th. The stock was sold at an average price of $458.96, for a total value of $6,702,192.88. Following the completion of the sale, the chief executive officer directly owned 75,020 shares of the company's stock, valued at approximately $34,431,179.20. The trade was a 16.29% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 0.56% of the stock is owned by insiders.

Key Stories Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Benchmark upgraded Synopsys (SNPS) to strong-buy, reinforcing a bullish long-term view on AI-driven demand for electronic design automation software. Zacks.com
• Positive Sentiment: Synopsys continues to have strong analyst support overall, with brokerage ratings averaging Moderate Buy and several recent price targets well above the current share price. American Banking News
• Neutral Sentiment: New commentary suggests the recent pullback may be a “buy the dip” opportunity, but that view is still based on technical support levels rather than a new fundamental catalyst. Trefis
• Negative Sentiment: SNPS is falling alongside a broader chip and tech selloff, which is weighing on sentiment across the semiconductor group. Benzinga
• Negative Sentiment: Investors are also worried about muted growth in Synopsys’s Design IP business and export-control headwinds, which may be limiting enthusiasm despite the earnings beat. Quiver Quantitative

Analysts Set New Price Targets

SNPS has been the topic of a number of recent research reports. Needham & Company LLC restated a "buy" rating and issued a $580.00 price objective on shares of Synopsys in a report on Thursday, May 28th. BNP Paribas Exane boosted their price target on Synopsys from $425.00 to $450.00 and gave the stock an "underperform" rating in a research report on Thursday, May 28th. Bank of America upped their price target on Synopsys from $515.00 to $600.00 and gave the stock a "buy" rating in a research note on Thursday, May 28th. Zacks Research raised Synopsys from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, June 30th. Finally, Piper Sandler upgraded Synopsys from a "neutral" rating to an "overweight" rating and lifted their price objective for the company from $450.00 to $550.00 in a research note on Tuesday, June 23rd. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Synopsys presently has an average rating of "Moderate Buy" and a consensus target price of $570.06.

Synopsys Stock Down 7.9%

NASDAQ:SNPS opened at $384.27 on Friday. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.32 and a current ratio of 1.43. The firm has a market cap of $73.58 billion, a P/E ratio of 88.95, a P/E/G ratio of 2.26 and a beta of 1.22. Synopsys, Inc. has a fifty-two week low of $366.00 and a fifty-two week high of $651.73. The firm has a 50-day simple moving average of $469.31 and a two-hundred day simple moving average of $458.62.

Synopsys (NASDAQ:SNPS - Get Free Report) last issued its 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 net margin of 8.91% and a return on equity of 5.83%. The firm had revenue of $2.28 billion for the quarter, compared to the consensus estimate of $2.25 billion. During the same quarter in the prior year, the firm posted $3.67 earnings per share. The business's revenue was up 41.9% on a year-over-year basis. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. Analysts predict that Synopsys, Inc. will post 10.65 earnings per share for the current fiscal year.

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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