NewEdge Advisors LLC Reduces Stock Position in Synopsys, Inc. $SNPS

Key Points

• NewEdge Advisors cut its Synopsys stake by 52.1% in the first quarter, selling 7,100 shares and retaining 6,521 shares valued at approximately $2.6 million. Institutional investors collectively own 85.47% of the company.
• Analyst sentiment remains favorable, with Synopsys receiving a consensus “Moderate Buy” rating and an average price target of $565.06; several firms recently raised their targets to $600.
• Synopsys reported quarterly revenue of $2.28 billion, up 41.9% year over year, and EPS of $3.35, exceeding estimates. However, the CFO and CEO both sold shares under pre-arranged Rule 10b5-1 plans, while the stock’s elevated valuation and broader semiconductor-cycle risks remain concerns.

NewEdge Advisors LLC lowered its stake in Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 52.1% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 6,521 shares of the semiconductor company's stock after selling 7,100 shares during the period. NewEdge Advisors LLC's holdings in Synopsys were worth $2,585,000 as of its most recent SEC filing.

A number of other hedge funds have also bought and sold shares of the company. Essential Partners LLC bought a new position in Synopsys during the 1st quarter valued at about $50,000. CCM Investment Advisers LLC boosted its stake in shares of Synopsys by 23.9% during the first quarter. CCM Investment Advisers LLC now owns 31,137 shares of the semiconductor company's stock valued at $12,345,000 after purchasing an additional 6,009 shares during the period. Western Wealth Management LLC purchased a new stake in Synopsys in the 1st quarter valued at about $131,000. Bank of America Corp DE boosted its holdings in shares of Synopsys by 34.0% in the first quarter. Bank of America Corp DE now owns 1,386,817 shares of the semiconductor company's stock valued at $549,845,000 after purchasing an additional 352,004 shares during the period. Finally, Intrinsic Edge Capital Management LLC lifted its holdings in shares of Synopsys by 10.0% in the 1st quarter. Intrinsic Edge Capital Management LLC now owns 11,000 shares of the semiconductor company's stock worth $4,361,000 after buying an additional 1,000 shares during the period. Institutional investors own 85.47% of the company's stock.

Analyst Ratings Changes

Several brokerages have recently weighed in on SNPS. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Synopsys in a research report on Monday, June 8th. Benchmark assumed coverage on shares of Synopsys in a report on Wednesday, July 15th. They issued a "buy" rating and a $570.00 price target on the stock. 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 report on Thursday, May 28th. Morgan Stanley upped their price objective on shares of Synopsys from $480.00 to $525.00 and gave the company an "equal weight" rating in a report on Thursday, May 28th. Finally, Stifel Nicolaus raised their target price on Synopsys from $550.00 to $600.00 and gave the stock a "buy" rating in a research note on Thursday, May 28th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Synopsys has a consensus rating of "Moderate Buy" and an average price target of $565.06.

Key Headlines Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys’ AI initiatives across chip design, verification and simulation could improve customer productivity and reinforce its position in the semiconductor software market. This supports the long-term growth case, particularly as demand for AI chips expands. Can SNPS Leverage AI to Accelerate Chip Design and Drive Growth?
• Positive Sentiment: Recent coverage remains bullish on Synopsys’ potential to reach $650, citing approximately 42% revenue growth, raised guidance and the completed $35 billion acquisition. However, the price target is speculative and depends on investors assigning greater value to the company’s growth prospects. Prediction: Synopsys Will Hit $650 on This Date
• Positive Sentiment: Strength in memory and storage stocks, along with continued investor demand for semiconductor-focused ETFs, indicates that enthusiasm for AI and the broader chip ecosystem remains supportive for Synopsys’ electronic-design-automation business. Memory Stocks Stay Strong With SanDisk, SK Hynix, and Western Digital Leading the Storage Stack
• Neutral Sentiment: General Counsel Janet Lee is leaving the role but transitioning to an advisory position. The orderly handoff may limit disruption, although leadership changes can create near-term uncertainty. Synopsys Announces General Counsel Janet Lee's Departure and Advisory Role Transition
• Negative Sentiment: Wells Fargo lowered its expectations for Synopsys’ stock, which can weigh on sentiment and reinforce concerns that the shares’ valuation does not yet reflect the company’s growth potential. Wells Fargo Has Lowered Expectations for Synopsys Stock Price
• Negative Sentiment: Fidelity’s warning that the semiconductor cycle may be nearing a peak introduces a broader sector risk. If chip spending or AI-related enthusiasm cools, high-growth suppliers such as Synopsys could face valuation pressure despite solid fundamentals. Semiconductor Flows Stay Sticky Despite Cycle-Peak Warning

Insider Buying and Selling

In related news, CFO Shelagh Glaser sold 3,394 shares of Synopsys stock in a transaction dated 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 sale, the chief financial officer directly owned 14,358 shares in the company, valued at approximately $6,461,387.16. The trade was a 19.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 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 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 completion of 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 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.

Synopsys Price Performance

Shares of NASDAQ SNPS opened at $411.75 on Friday. The stock has a market capitalization of $78.84 billion, a price-to-earnings ratio of 95.31, a PEG ratio of 2.42 and a beta of 1.23. Synopsys, Inc. has a 12 month low of $366.00 and a 12 month high of $626.24. The firm's 50 day simple moving average is $426.49 and its 200-day simple moving average is $443.50. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.43 and a quick ratio of 1.32.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted its earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share (EPS) for the quarter, beating 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 during the quarter, compared to analysts' expectations of $2.25 billion. During the same period in the previous year, the business posted $3.67 EPS. The business's revenue was up 41.9% compared to the same quarter last year. 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 expect 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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