Hsbc Holdings PLC Decreases Stock Holdings in Synopsys, Inc. $SNPS

Key Points

• HSBC Holdings PLC reduced its Synopsys stake by 16.9% in the fourth quarter, selling 62,394 shares and leaving it with 306,159 shares valued at about $143.9 million.
• Insider selling was also notable, with CFO Shelagh Glaser and CEO Sassine Ghazi both selling shares in pre-arranged Rule 10b5-1 transactions tied in part to tax withholding and equity award vesting.
• Synopsys reported better-than-expected quarterly results, with EPS of $3.35 topping estimates and revenue rising 41.9% year over year to $2.28 billion, while analysts currently rate the stock a consensus Hold with an average target price of $563.81.

Hsbc Holdings PLC cut its stake in Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 16.9% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 306,159 shares of the semiconductor company's stock after selling 62,394 shares during the period. Hsbc Holdings PLC owned approximately 0.16% of Synopsys worth $143,856,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also recently made changes to their positions in the stock. Empirical Asset Management LLC acquired a new stake in Synopsys during the third quarter worth about $773,000. China Universal Asset Management Co. Ltd. boosted its holdings in Synopsys by 31.8% in the 4th quarter. China Universal Asset Management Co. Ltd. now owns 14,810 shares of the semiconductor company's stock valued at $6,957,000 after purchasing an additional 3,575 shares during the last quarter. SeaTown Holdings Pte. Ltd. boosted its holdings in Synopsys by 55.9% in the 4th quarter. SeaTown Holdings Pte. Ltd. now owns 22,300 shares of the semiconductor company's stock valued at $10,475,000 after purchasing an additional 8,000 shares during the last quarter. Norges Bank purchased a new stake in shares of Synopsys in the 4th quarter valued at approximately $730,197,000. Finally, Douglas Lane & Associates LLC grew its stake in shares of Synopsys by 5,701.2% in the 4th quarter. Douglas Lane & Associates LLC now owns 48,730 shares of the semiconductor company's stock valued at $22,889,000 after buying an additional 47,890 shares during the period. Institutional investors and hedge funds own 85.47% of the company's stock.

Insider Activity

In other Synopsys news, CFO Shelagh Glaser sold 3,394 shares of the business's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the sale, the chief financial officer directly owned 14,358 shares in the company, valued at $6,461,387.16. This represents a 19.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the sale, the chief executive officer directly owned 75,020 shares in the company, valued at $34,431,179.20. This represents a 16.29% decrease in their position. The SEC filing for this sale provides additional information. 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 currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. KeyCorp reiterated an "overweight" rating on shares of Synopsys in a report on Thursday, May 28th. Berenberg Bank set a $633.00 target price on Synopsys in a research note on Wednesday, May 27th. The Goldman Sachs Group set a $600.00 target price on Synopsys and gave the company a "buy" rating in a research report on Wednesday, February 25th. Wells Fargo & Company upped their price target on Synopsys from $505.00 to $535.00 and gave the company an "equal weight" rating in a research note on Thursday, May 28th. Finally, BNP Paribas Exane increased their price target on Synopsys from $425.00 to $450.00 and gave the stock an "underperform" rating in a report on Thursday, May 28th. Nine equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $563.81.

Synopsys Price Performance

Shares of NASDAQ SNPS opened at $455.51 on Friday. The company has a quick ratio of 1.32, a current ratio of 1.43 and a debt-to-equity ratio of 0.33. The business's 50 day moving average is $479.14 and its two-hundred day moving average is $462.05. Synopsys, Inc. has a 52-week low of $376.18 and a 52-week high of $651.73. The firm has a market cap of $87.22 billion, a price-to-earnings ratio of 105.44, a PEG ratio of 2.68 and a beta of 1.22.

Synopsys (NASDAQ:SNPS - Get Free Report) last released its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, topping the consensus estimate of $3.15 by $0.20. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The business had revenue of $2.28 billion during the quarter, compared to analyst estimates of $2.25 billion. During the same period last year, the business posted $3.67 earnings per share. The company's quarterly 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. Research analysts predict that Synopsys, Inc. will post 10.65 EPS for the current year.

Synopsys Profile

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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