Royal Bank of Canada Sells 33,967 Shares of Synopsys, Inc. $SNPS

Key Points

• Royal Bank of Canada cut its Synopsys stake by 5.1%, selling 33,967 shares and retaining 631,380 shares valued at approximately $250.3 million. Institutional investors collectively own 85.47% of the company.
• Synopsys reported quarterly EPS of $3.35, exceeding estimates of $3.15, while revenue rose 41.9% year over year to $2.28 billion, partly due to the Ansys acquisition. The stock remains richly valued, with a P/E ratio of 86.5, and recently traded near its 12-month low.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and a $570.06 price target. Nvidia and other AI-related partnerships, along with Synopsys’ role in Intel’s 14A process, are viewed as potential long-term growth drivers.

Royal Bank of Canada reduced its holdings in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 5.1% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 631,380 shares of the semiconductor company's stock after selling 33,967 shares during the quarter. Royal Bank of Canada owned approximately 0.33% of Synopsys worth $250,330,000 as of its most recent SEC filing.

A number of other institutional investors have also recently bought and sold shares of SNPS. Sowell Financial Services LLC boosted its holdings in shares of Synopsys by 2.0% in the 4th quarter. Sowell Financial Services LLC now owns 1,056 shares of the semiconductor company's stock worth $496,000 after buying an additional 21 shares during the last quarter. Natural Investments LLC increased its holdings in Synopsys by 4.6% during the fourth quarter. Natural Investments LLC now owns 482 shares of the semiconductor company's stock worth $226,000 after buying an additional 21 shares during the last quarter. Financial Management Professionals Inc. raised its position in Synopsys by 7.0% in the fourth quarter. Financial Management Professionals Inc. now owns 335 shares of the semiconductor company's stock worth $157,000 after acquiring an additional 22 shares during the period. Foronjy Financial LLC raised its position in Synopsys by 5.2% in the fourth quarter. Foronjy Financial LLC now owns 446 shares of the semiconductor company's stock worth $210,000 after acquiring an additional 22 shares during the period. Finally, AGH Wealth Advisors LLC boosted its stake in Synopsys by 4.4% in the first quarter. AGH Wealth Advisors LLC now owns 569 shares of the semiconductor company's stock valued at $226,000 after acquiring an additional 24 shares during the last quarter. Institutional investors own 85.47% of the company's stock.

Key Headlines Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Expanded Nvidia partnership supports AI growth. Nvidia is adding Synopsys to its Agent Toolkit ecosystem, helping automate chip and system design. The relationship could increase demand for Synopsys’ electronic design automation (EDA) software as semiconductor companies adopt agentic AI. Agentic AI Is Coming to Chip Design. Here Is Why Synopsys Stock Could Be the Biggest Beneficiary
• Positive Sentiment: AI alliances may strengthen Synopsys’ strategic position. Partnerships involving Nvidia, AMD, Microsoft and Intel are aimed at automating chip-design bottlenecks, potentially improving productivity for customers and reinforcing Synopsys’ central role in the semiconductor ecosystem. Synopsys Just Solved a Bottleneck You Didn’t Even Know Existed
• Positive Sentiment: Intel’s next-generation 14A process provides another validation point. Synopsys’ tools are already supporting Intel’s 14A chip-development efforts, highlighting the importance of its software in advanced semiconductor manufacturing. Intel’s 14A chips aren’t built yet: Synopsys is already there
• Neutral Sentiment: Recent results remain solid but acquisition-driven. Quarterly revenue rose 41.9% year over year to $2.28 billion and EPS exceeded expectations, largely reflecting the Ansys acquisition. Investors may be looking for stronger organic growth to support Synopsys’ premium valuation. Synopsys: How Agentic AI And Ansys Drive Long-Term Growth
• Negative Sentiment: The immediate decline appears tied more to market and valuation pressure than a new fundamental setback. Reports noted that Synopsys underperformed the broader market during the latest session, while its elevated earnings multiple and recent underperformance likely encouraged caution and profit-taking. No new earnings warning was cited. Here’s Why Synopsys Fell More Than Broader Market

Synopsys Stock Performance

Shares of SNPS stock opened at $373.69 on Thursday. The firm's 50 day moving average is $449.23 and its 200 day moving average is $452.19. The stock has a market capitalization of $71.55 billion, a P/E ratio of 86.50, a PEG ratio of 2.25 and a beta of 1.22. Synopsys, Inc. has a 12 month low of $366.00 and a 12 month high of $651.73. The company has a current ratio of 1.43, a quick ratio of 1.32 and a debt-to-equity ratio of 0.33.

Synopsys (NASDAQ:SNPS - Get Free Report) last released its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share for the quarter, beating analysts' consensus estimates of $3.15 by $0.20. The business had revenue of $2.28 billion during the quarter, compared to analyst estimates of $2.25 billion. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. Synopsys's revenue was up 41.9% compared to the same quarter last year. During the same period in the previous year, the business earned $3.67 EPS. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. On average, sell-side analysts anticipate that Synopsys, Inc. will post 10.65 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the stock. Rosenblatt Securities increased their target price on shares of Synopsys from $530.00 to $575.00 and gave the company a "buy" rating in a research report on Tuesday, May 26th. Needham & Company LLC reaffirmed a "buy" rating and issued a $580.00 price target on shares of Synopsys in a report on Thursday, May 28th. Piper Sandler upgraded Synopsys from a "neutral" rating to an "overweight" rating and upped their price objective for the company from $450.00 to $550.00 in a research note on Tuesday, June 23rd. Robert W. Baird set a $558.00 price objective on Synopsys in a report on Thursday, May 28th. Finally, Citigroup boosted their target price on Synopsys from $600.00 to $610.00 and gave the company a "buy" rating in a research note on Thursday, May 28th. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Synopsys presently has a consensus rating of "Moderate Buy" and a consensus price target of $570.06.

Insider Buying and Selling at Synopsys

In other Synopsys news, CFO Shelagh Glaser sold 3,394 shares of the firm's 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 completion of the transaction, the chief financial officer owned 14,358 shares in the company, valued at $6,461,387.16. This trade represents a 19.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $458.96, for a total value of $6,702,192.88. Following the sale, the chief executive officer owned 75,020 shares in the company, 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. 0.56% of the stock is currently owned by insiders.

About Synopsys

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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