Kerrisdale Advisers LLC Decreases Stock Position in Synopsys, Inc. $SNPS

Key Points

• Kerrisdale Advisers cut its Synopsys position by 27% in the second quarter, selling 2,765 shares and retaining 7,466 shares valued at approximately $3.33 million. Institutional investors and hedge funds collectively own 85.47% of SNPS.
• Synopsys exceeded quarterly expectations, reporting adjusted EPS of $3.91 versus $3.67 expected and revenue of $2.48 billion, up 42.4% year over year. Management raised fiscal 2026 guidance, supported by EDA demand and the Ansys acquisition.
• Analysts maintain a generally positive view, with a “Moderate Buy” consensus and an average price target of $561.28, but valuation remains a concern given the stock’s P/E ratio of 78.20. The CEO and CFO also sold shares under pre-arranged Rule 10b5-1 plans.

Kerrisdale Advisers LLC lowered its position in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 27.0% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 7,466 shares of the semiconductor company's stock after selling 2,765 shares during the period. Synopsys makes up about 0.8% of Kerrisdale Advisers LLC's investment portfolio, making the stock its 24th largest position. Kerrisdale Advisers LLC's holdings in Synopsys were worth $3,330,000 at the end of the most recent reporting period.

A number of other institutional investors have also made changes to their positions in SNPS. Sankala Group LLC acquired a new position in Synopsys in the 4th quarter worth $25,000. Elevation Wealth Partners LLC grew its stake in shares of Synopsys by 96.4% during the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company's stock valued at $25,000 after acquiring an additional 27 shares in the last quarter. Osbon Capital Management LLC acquired a new stake in shares of Synopsys during the second quarter valued at about $25,000. IMG Wealth Management Inc. purchased a new stake in shares of Synopsys during the second quarter worth about $28,000. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of Synopsys in the fourth quarter worth about $28,000. 85.47% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, CFO Shelagh Glaser sold 3,394 shares of Synopsys stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the sale, the chief financial officer owned 14,358 shares of the company's stock, valued at approximately $6,461,387.16. The trade was a 19.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through 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 business's stock in a transaction that occurred 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 transaction, the chief executive officer owned 75,020 shares of the company's stock, valued at approximately $34,431,179.20. This represents a 16.29% decrease in their ownership of the stock. 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. Company insiders own 0.56% of the company's stock.

Key Stories Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Strong Q3 performance: Synopsys reported adjusted earnings of $3.91 per share versus expectations of $3.67, while revenue reached $2.48 billion, up 42.4% year over year and ahead of estimates. Strength in electronic design automation (EDA) and the Ansys acquisition supported the results. SNPS Q3 Earnings Beat Estimates on EDA and Ansys Strength
• Positive Sentiment: Higher outlook and AI momentum: Management raised fiscal 2026 guidance, citing accelerating EDA demand, recovering Design IP activity, interest in agentic AI and additional opportunities from integrating Ansys. Fiscal 2026 EPS guidance is $15.04–$15.10, with revenue guidance reportedly raised to approximately $9.72 billion. SNPS Q3 Earnings Call Highlights EDA Acceleration, Outlook Raised
• Positive Sentiment: Analyst and strategic support: Goldman Sachs, Benchmark and Needham reaffirmed Buy ratings, with price targets ranging from $570 to $600. Elliott Investment Management also reportedly built a multibillion-dollar position, betting Synopsys can narrow its discount to peers. Elliott Bets Multibillion-Dollar Position on Closing Synopsys’ Peer Discount
• Neutral Sentiment: Commentators view Synopsys as a key supplier to major technology companies, including Nvidia, and believe Ansys has strengthened its competitive moat; however, the acquisition’s full contribution depends on successful integration and future synergies. SNPS in Right Place, Right Time?
• Negative Sentiment: Valuation and peer concerns: Following the earnings rally, investors are refocusing on valuation, with Synopsys trading at a high earnings multiple. A comparison with PDF Solutions also highlighted stronger growth and margin improvement at the smaller rival, potentially limiting near-term enthusiasm for SNPS. SNPS vs. PDFS: Which Semiconductor Software Stock Has an Edge?

Synopsys Price Performance

Shares of SNPS opened at $442.61 on Monday. Synopsys, Inc. has a 12 month low of $366.00 and a 12 month high of $615.79. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.34 and a quick ratio of 1.24. The stock has a fifty day moving average price of $416.64 and a 200 day moving average price of $440.14. The company has a market cap of $84.82 billion, a P/E ratio of 78.20, a PEG ratio of 2.42 and a beta of 1.23.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.67 by $0.24. The company had revenue of $2.48 billion for the quarter, compared to analysts' expectations of $2.44 billion. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The firm's quarterly revenue was up 42.4% compared to the same quarter last year. During the same period last year, the business posted $3.39 earnings per share. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. On average, research analysts forecast that Synopsys, Inc. will post 11.03 earnings per share for the current year.

Analysts Set New Price Targets

SNPS has been the subject of several research analyst reports. Berenberg Bank set a $633.00 target price on Synopsys in a research note on Wednesday, May 27th. Piper Sandler raised shares of Synopsys from a "neutral" rating to an "overweight" rating and upped their price target for the company from $450.00 to $550.00 in a report on Tuesday, June 23rd. Robert W. Baird raised shares of Synopsys from a "neutral" rating to an "outperform" rating and raised their price objective for the stock from $558.00 to $560.00 in a report on Thursday. Rosenblatt Securities reissued a "buy" rating and issued a $575.00 target price on shares of Synopsys in a research report on Tuesday, August 25th. Finally, Morgan Stanley dropped their price target on Synopsys from $525.00 to $500.00 and set an "equal weight" rating on the stock in a research report on Wednesday, August 19th. Twelve research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $561.28.

Synopsys Company 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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