Synopsys, Inc. $SNPS Holdings Lifted by Sumitomo Mitsui Trust Group Inc.

Key Points

• Sumitomo Mitsui Trust Group increased its Synopsys stake by 6.7% in the third quarter, bringing its holdings to 842,273 shares valued at approximately $366.3 million. Institutional investors collectively own 85.47% of the company.
• Wall Street sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $575. Needham and Rosenblatt recently raised their targets to $620.
• Synopsys exceeded quarterly earnings and revenue expectations, reporting $3.91 in EPS and $2.48 billion in revenue, while revenue rose 42.4% year over year. The company also authorized a $1 billion share repurchase program, although insiders have sold more than $51 million in stock over the past three months.

Sumitomo Mitsui Trust Group Inc. raised its position in Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 6.7% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 842,273 shares of the semiconductor company's stock after purchasing an additional 52,533 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned about 0.44% of Synopsys worth $366,338,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors also recently made changes to their positions in SNPS. Elevation Wealth Partners LLC boosted its position 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 worth $25,000 after buying an additional 27 shares during the period. Osbon Capital Management LLC acquired a new stake in Synopsys in the 2nd quarter valued at approximately $25,000. IMG Wealth Management Inc. acquired a new stake in Synopsys in the 2nd quarter valued at approximately $28,000. GK Wealth Management LLC acquired a new stake in Synopsys in the 3rd quarter valued at approximately $28,000. Finally, Geneos Wealth Management Inc. raised its stake in Synopsys by 151.5% during the 1st quarter. Geneos Wealth Management Inc. now owns 83 shares of the semiconductor company's stock valued at $33,000 after acquiring an additional 50 shares in the last quarter. Institutional investors and hedge funds own 85.47% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on SNPS shares. Roth Capital upgraded Synopsys to a "buy" rating in a research report on Friday, September 25th. Needham & Company LLC lifted their price objective on shares of Synopsys from $580.00 to $620.00 and gave the company a "buy" rating in a research note on Monday, October 12th. Weiss Ratings downgraded shares of Synopsys from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday, September 11th. Rosenblatt Securities increased their target price on shares of Synopsys from $575.00 to $620.00 and gave the company a "buy" rating in a research report on Thursday, October 1st. Finally, Barclays began coverage on shares of Synopsys in a research report on Friday, September 25th. They issued an "overweight" rating for the company. One analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $575.00.

Synopsys Price Performance

NASDAQ SNPS opened at $467.61 on Friday. Synopsys, Inc. has a 1 year low of $362.55 and a 1 year high of $539.48. The business's fifty day moving average is $437.48 and its two-hundred day moving average is $443.62. The stock has a market capitalization of $89.61 billion, a P/E ratio of 82.62, a P/E/G ratio of 1.90 and a beta of 1.21. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34.

Synopsys (NASDAQ:SNPS - Get Free Report) last released its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, topping the consensus estimate of $3.67 by $0.24. The business had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.44 billion. Synopsys had a return on equity of 6.24% and a net margin of 11.43%. The company's revenue was up 42.4% compared to the same quarter last year. During the same period last year, the company posted $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. On average, research analysts forecast that Synopsys, Inc. will post 11.01 earnings per share for the current fiscal year.

Synopsys declared that its Board of Directors has approved a stock repurchase program on Monday, October 5th that permits the company to repurchase $1 billion in shares. This repurchase authorization permits the semiconductor company to reacquire up to 1.1% of its shares through open market purchases. Stock repurchase programs are usually an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other Synopsys news, insider Janet Lee sold 1,144 shares of the business's stock in a transaction dated Tuesday, October 6th. The stock was sold at an average price of $502.52, for a total transaction of $574,882.88. Following the sale, the insider owned 16,534 shares in the company, valued at approximately $8,308,665.68. The trade was a 6.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Sassine Ghazi sold 14,604 shares of the business's stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $462.84, for a total value of $6,759,315.36. Following the sale, the chief executive officer owned 76,865 shares in the company, valued at approximately $35,576,196.60. The trade was a 15.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 117,163 shares of company stock valued at $51,366,457. 0.56% of the stock is currently owned by company insiders.

Synopsys Profile

Synopsys, Inc is an electronic design automation (EDA) and semiconductor intellectual property company serving the global semiconductor and electronics industries. Its software helps engineers design, verify, test and manufacture advanced integrated circuits and electronic systems.

The company's products and services support digital and analog design, functional verification, design-for-test, manufacturing and semiconductor engineering workflows. Synopsys also provides reusable semiconductor IP, including processor cores, interface technologies, security solutions and other components used in system-on-chip designs.

In addition to its semiconductor design offerings, Synopsys provides software development and application security tools intended to help organizations identify and manage vulnerabilities and risks across the software development lifecycle.

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