Quintet Private Bank Europe S.A. Increases Stock Holdings in Synopsys, Inc. $SNPS

Key Points

• Quintet Private Bank Europe increased its Synopsys stake by 64.4% in the third quarter, bringing its holdings to 104,165 shares valued at approximately $45.3 million. Institutional investors collectively own 85.47% of the company.
• Synopsys reported strong quarterly results, with EPS of $3.91 beating estimates of $3.67 and revenue of $2.48 billion exceeding expectations. Revenue increased 42.4% year over year, and the board authorized a $1 billion share-repurchase program.
• Analysts remain broadly optimistic but valuation is elevated: the stock has a “Moderate Buy” consensus rating and an average target of $584.11, while shares trade near 89 times earnings. Recent insider selling and differing analyst views add potential near-term sentiment risks.

Quintet Private Bank Europe S.A. lifted its stake in Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 64.4% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 104,165 shares of the semiconductor company's stock after acquiring an additional 40,812 shares during the quarter. Synopsys accounts for about 2.1% of Quintet Private Bank Europe S.A.'s investment portfolio, making the stock its 13th largest holding. Quintet Private Bank Europe S.A. owned 0.05% of Synopsys worth $45,306,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors also recently modified their holdings of the company. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in Synopsys in the 2nd quarter worth about $747,400,000. Man Group plc purchased a new position in shares of Synopsys during the second quarter valued at approximately $55,900,000. Nykredit A S bought a new position in shares of Synopsys during the second quarter valued at approximately $23,158,000. Bank of America Corp DE bought a new position in shares of Synopsys during the second quarter valued at approximately $539,986,000. Finally, Integrated Wealth Concepts LLC raised its holdings in shares of Synopsys by 88.6% in the second quarter. Integrated Wealth Concepts LLC now owns 6,816 shares of the semiconductor company's stock worth $3,040,000 after buying an additional 3,202 shares during the period. Institutional investors own 85.47% of the company's stock.

Analyst Upgrades and Downgrades

SNPS has been the subject of a number of research analyst reports. Morgan Stanley decreased their price target on Synopsys from $525.00 to $500.00 and set an "equal weight" rating for the company in a research note on Wednesday, August 19th. BNP Paribas Exane upgraded Synopsys from an "underperform" rating to a "neutral" rating and set a $420.00 target price on the stock in a research note on Thursday, September 24th. Piper Sandler upgraded Synopsys from a "neutral" rating to an "overweight" rating and lifted their target price for the stock from $450.00 to $550.00 in a research report on Tuesday, June 23rd. HSBC lowered shares of Synopsys from a "buy" rating to a "reduce" rating in a research note on Friday, September 25th. Finally, Robert W. Baird upgraded shares of Synopsys from a "neutral" rating to an "outperform" rating and upped their price target for the stock from $558.00 to $560.00 in a report on Thursday, August 27th. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $584.11.

Synopsys Stock Up 0.0%

NASDAQ SNPS traded up $0.14 on Thursday, reaching $502.81. 736,282 shares of the stock traded hands, compared to its average volume of 2,029,857. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34. The company has a fifty day moving average price of $415.01 and a 200-day moving average price of $437.96. The company has a market cap of $96.36 billion, a price-to-earnings ratio of 89.10, a PEG ratio of 2.06 and a beta of 1.21. Synopsys, Inc. has a 12 month low of $362.55 and a 12 month high of $539.48.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.67 by $0.24. The business had revenue of $2.48 billion for the quarter, compared to the consensus estimate of $2.44 billion. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The business's revenue was up 42.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $3.39 EPS. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. As a group, research analysts forecast that Synopsys, Inc. will post 10.97 EPS for the current fiscal year.

Synopsys declared that its board has initiated a stock repurchase plan on Monday, October 5th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the semiconductor company to buy up to 1.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board of directors believes its shares are undervalued.

Key Headlines Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: AI partnerships strengthen the growth outlook. Synopsys announced chip-design and verification collaborations with OpenAI and Amazon. The expanded Amazon relationship could represent a potential $1 billion opportunity, while Nvidia’s $2 billion investment and planned agentic-AI workflows reinforce Synopsys’ role in increasingly complex AI-chip development. Synopsys AI chip-design alliances
• Positive Sentiment: Share buyback provides support. Synopsys’ board authorized a $1 billion repurchase program, allowing the company to reacquire up to approximately 1.1% of its outstanding shares. The buyback could modestly lift earnings per share and signals management’s confidence in the stock’s long-term value. Synopsys stock repurchase program
• Positive Sentiment: Recent financial results support investor optimism. Synopsys reported quarterly adjusted EPS of $3.91 versus the $3.67 consensus estimate, while revenue reached $2.48 billion versus $2.44 billion expected. Revenue grew 42.4% year over year, underscoring strong demand for its electronic-design-automation software and semiconductor IP.
• Neutral Sentiment: Analysts remain broadly constructive but divided on valuation. The consensus rating is Moderate Buy, with an average price target of $584.11 and targets as high as $640. However, HSBC has a Reduce rating, and the stock trades at roughly 89 times earnings, leaving limited room for execution disappointments.
• Negative Sentiment: Multiple insiders sold shares. CFO Sudhindra Kankanwadi sold 9,170 shares for approximately $4.59 million on October 6 and 3,000 shares for about $1.45 million on October 5. Janet Lee separately sold 1,144 shares valued at approximately $575,000. The sales reduce insider ownership and may create a near-term sentiment overhang, although they do not necessarily indicate weakening business conditions. Synopsys insider selling
• Negative Sentiment: Expectations remain high. Commentary notes that SNPS has sometimes declined after earnings beats, suggesting that its elevated valuation and strong AI expectations may already be reflected in the share price.

Insider Buying and Selling at Synopsys

In other Synopsys news, CEO Sassine Ghazi sold 14,604 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $374.88, for a total transaction of $5,474,747.52. Following the sale, the chief executive officer owned 76,865 shares of the company's stock, valued at approximately $28,815,151.20. This trade represents a 15.97% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Janet Lee sold 1,144 shares of Synopsys stock in a transaction on Tuesday, October 6th. The shares were sold at an average price of $502.52, for a total value of $574,882.88. Following the completion of the transaction, the insider owned 16,534 shares in the company, valued at $8,308,665.68. This represents a 6.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 102,559 shares of company stock valued at $44,607,141 in the last 90 days. Insiders own 0.56% of the company's stock.

Synopsys Company Profile

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and software tools used to design, verify, and manufacture advanced electronic systems. Its solutions support the development of semiconductors, systems-on-chip, and electronic products across the design cycle, from initial specification and architecture through testing and production.

The company's offerings include digital and custom integrated-circuit design tools, simulation and verification software, physical design and signoff products, and semiconductor IP such as processor cores, interface technologies, and foundational components.

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