41,400 Shares in Synopsys, Inc. (NASDAQ:SNPS) Bought by Primecap Management Co. CA

Key Points

• Primecap Management Co. CA has invested approximately $17.75 million in Synopsys, Inc., purchasing 41,400 shares in the semiconductor company during the first quarter.
• Synopsys' stock is currently trading at $620.33, with a market cap of $96.25 billion and recent earnings of $3.67 per share, exceeding analyst expectations.
• Analysts rate Synopsys with an average target price of $622.33, reflecting strong buy ratings from thirteen analysts, indicating a positive outlook for the stock.

Primecap Management Co. CA acquired a new position in Synopsys, Inc. (NASDAQ:SNPS - Free Report) during the first quarter, according to the company in its most recent filing with the SEC. The fund acquired 41,400 shares of the semiconductor company's stock, valued at approximately $17,754,000.

A number of other institutional investors have also recently added to or reduced their stakes in the company. GAMMA Investing LLC raised its stake in shares of Synopsys by 54,286.0% in the 1st quarter. GAMMA Investing LLC now owns 1,196,492 shares of the semiconductor company's stock valued at $513,116,000 after purchasing an additional 1,194,292 shares in the last quarter. Price T Rowe Associates Inc. MD raised its stake in shares of Synopsys by 21.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,902,696 shares of the semiconductor company's stock valued at $2,864,933,000 after purchasing an additional 1,045,326 shares in the last quarter. Pictet Asset Management Holding SA raised its stake in shares of Synopsys by 38.3% in the 1st quarter. Pictet Asset Management Holding SA now owns 2,432,596 shares of the semiconductor company's stock valued at $1,043,518,000 after purchasing an additional 673,837 shares in the last quarter. Capital Research Global Investors acquired a new stake in shares of Synopsys in the 4th quarter valued at about $239,864,000. Finally, Ameriprise Financial Inc. raised its stake in shares of Synopsys by 26.2% in the 4th quarter. Ameriprise Financial Inc. now owns 1,888,181 shares of the semiconductor company's stock valued at $916,441,000 after purchasing an additional 391,681 shares in the last quarter. Institutional investors and hedge funds own 85.47% of the company's stock.

Insiders Place Their Bets

In other news, CRO Richard S. Mahoney sold 9,010 shares of Synopsys stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $471.21, for a total transaction of $4,245,602.10. Following the completion of the sale, the executive owned 1,485 shares in the company, valued at $699,746.85. The trade was a 85.85% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Sassine Ghazi sold 11,366 shares of the stock in a transaction on Monday, June 2nd. The stock was sold at an average price of $457.93, for a total transaction of $5,204,832.38. Following the sale, the chief executive officer directly owned 71,589 shares of the company's stock, valued at $32,782,750.77. This represents a 13.70% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 27,686 shares of company stock valued at $13,001,048. Insiders own 0.62% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Morgan Stanley upped their target price on shares of Synopsys from $540.00 to $715.00 and gave the company an "overweight" rating in a research note on Monday. KeyCorp increased their price objective on shares of Synopsys from $540.00 to $610.00 and gave the stock an "overweight" rating in a research note on Thursday, July 10th. Piper Sandler upped their target price on shares of Synopsys from $615.00 to $660.00 and gave the stock an "overweight" rating in a research report on Monday, July 21st. Mizuho decreased their price objective on shares of Synopsys from $650.00 to $600.00 and set an "outperform" rating for the company in a report on Tuesday, April 15th. Finally, The Goldman Sachs Group assumed coverage on shares of Synopsys in a report on Thursday, July 10th. They issued a "buy" rating and a $620.00 price objective for the company. One investment analyst has rated the stock with a hold rating and thirteen have issued a buy rating to the company. According to data from MarketBeat.com, Synopsys currently has an average rating of "Moderate Buy" and an average target price of $630.67.

Synopsys Stock Performance

NASDAQ:SNPS traded down $2.79 during midday trading on Monday, reaching $616.63. The stock had a trading volume of 571,109 shares, compared to its average volume of 1,439,792. Synopsys, Inc. has a 1-year low of $365.74 and a 1-year high of $651.73. The firm's fifty day simple moving average is $544.48 and its 200-day simple moving average is $494.35. The company has a debt-to-equity ratio of 1.01, a current ratio of 7.02 and a quick ratio of 6.85. The stock has a market capitalization of $95.68 billion, a P/E ratio of 44.52, a PEG ratio of 4.10 and a beta of 1.15.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted its quarterly earnings results on Wednesday, May 28th. The semiconductor company reported $3.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.40 by $0.27. The company had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.60 billion. Synopsys had a net margin of 34.77% and a return on equity of 17.09%. The business's quarterly revenue was up 10.3% on a year-over-year basis. During the same period last year, the business posted $3.00 EPS. On average, equities research analysts forecast that Synopsys, Inc. will post 10.64 EPS for the current fiscal year.

About Synopsys

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.