Synopsys, Inc. $SNPS Position Boosted by Sigma Investment Counselors Inc.

Key Points

• Sigma Investment Counselors increased its Synopsys position by 18.6% in the third quarter, bringing its holdings to 24,448 shares valued at approximately $10.6 million. Institutional investors collectively own 85.47% of the company.
• Synopsys reported quarterly earnings of $3.91 per share and revenue of $2.48 billion, surpassing analyst expectations, while revenue grew 42.4% year over year. The company also authorized a $1 billion share-repurchase program.
• Shares recently traded at $474.42, up 4.4%, and analysts maintain a “Moderate Buy” consensus with an average price target of $575. However, insiders sold more than 117,000 shares worth about $51.4 million during the quarter.

Sigma Investment Counselors Inc. boosted its holdings in Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 18.6% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 24,448 shares of the semiconductor company's stock after purchasing an additional 3,828 shares during the period. Sigma Investment Counselors Inc.'s holdings in Synopsys were worth $10,633,000 at the end of the most recent reporting period.

Several other hedge funds have also added to or reduced their stakes in the business. Generali Asset Management SPA SGR lifted its stake in shares of Synopsys by 2.2% in the 3rd quarter. Generali Asset Management SPA SGR now owns 15,408 shares of the semiconductor company's stock valued at $6,702,000 after acquiring an additional 338 shares during the last quarter. Asset Management One Co. Ltd. boosted its holdings in Synopsys by 0.8% during the 3rd quarter. Asset Management One Co. Ltd. now owns 79,536 shares of the semiconductor company's stock valued at $34,593,000 after acquiring an additional 654 shares during the period. Angeles Wealth Management LLC boosted its holdings in Synopsys by 8.3% during the 3rd quarter. Angeles Wealth Management LLC now owns 899 shares of the semiconductor company's stock valued at $391,000 after acquiring an additional 69 shares during the period. Ashton Thomas Securities LLC purchased a new stake in Synopsys during the 3rd quarter valued at about $114,000. Finally, Peterson Wealth Services grew its position in Synopsys by 16.3% during the 3rd quarter. Peterson Wealth Services now owns 286 shares of the semiconductor company's stock worth $124,000 after acquiring an additional 40 shares during the last quarter. 85.47% of the stock is owned by institutional investors.

Synopsys Trading Up 4.4%

Shares of NASDAQ:SNPS opened at $474.42 on Wednesday. The company has a market cap of $90.92 billion, a price-to-earnings ratio of 83.82 and a beta of 1.21. The company has a 50-day moving average price of $432.75 and a 200-day moving average price of $444.29. 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 earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, topping analysts' consensus estimates of $3.67 by $0.24. The firm had revenue of $2.48 billion for the quarter, compared to analysts' expectations of $2.44 billion. The business's revenue for the quarter was up 42.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $3.39 earnings per share. 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 11.01 EPS for the current fiscal year.

Synopsys declared that its Board of Directors has approved a stock buyback program on Monday, October 5th that authorizes the company to repurchase $1 billion in shares. This repurchase authorization authorizes the semiconductor company to purchase up to 1.1% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In related news, insider Janet Lee sold 1,144 shares of the company's stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $502.52, for a total transaction 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. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Sassine Ghazi sold 14,604 shares of the firm's stock in a transaction on 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 completion of the sale, the chief executive officer directly owned 76,865 shares of the company's stock, valued at $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 quarter, insiders have sold 117,163 shares of company stock worth $51,366,457. Corporate insiders own 0.56% of the company's stock.

Analyst Ratings Changes

SNPS has been the topic of a number of analyst reports. Zacks Research raised Synopsys from a "hold" rating to a "strong-buy" rating in a research note on Friday, October 2nd. UBS Group set a $570.00 price objective on Synopsys in a research report on Thursday, August 27th. Sanford C. Bernstein started coverage on Synopsys in a research note on Friday, September 25th. They set an "outperform" rating for the company. Mizuho dropped their price objective on Synopsys from $600.00 to $550.00 and set an "outperform" rating for the company in a research note on Thursday, August 27th. Finally, Bank of America raised their target price on shares of Synopsys from $500.00 to $600.00 in a report on Thursday, October 1st. One equities research 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, Synopsys currently has an average rating of "Moderate Buy" and a consensus target price of $575.00.

Trending Headlines about Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: SNPS broke above both its 50-day and 200-day moving averages, technical signals that suggest improving short- and long-term momentum and may attract momentum-oriented investors. Synopsys Just Overtook the 50-Day Moving Average Synopsys Just Overtook the 200-Day Moving Average
• Positive Sentiment: S&P raised Synopsys’ credit rating to BBB+, citing its position as a chip-design leader and its ability to benefit from sustained AI-related demand. The upgrade may reinforce confidence in the company’s financial strength and growth prospects. S&P Lifts Synopsys to BBB+
• Positive Sentiment: TetraMem taped out a 12nm AI system-on-chip using Synopsys’ cloud-enabled electronic design automation tools. The development provides a customer-use example supporting demand for Synopsys’ advanced design and simulation software, although it is not expected to have a material immediate financial impact. TetraMem Advances Analog In-Memory Computing
• Positive Sentiment: Analysts’ consensus price target implies substantial potential upside, while commentary highlights Synopsys’ AI agents, chip-design tools and multiphysics simulation as possible drivers of productivity and long-term revenue growth. Can Synopsys’ AI Push Drive Chip Design Efficiency and Growth?
• Neutral Sentiment: Reports discussing SNPS’s long-term investment returns provide historical context but are unlikely to be a major catalyst for the current session. A reported short-interest figure of zero shares also appears unusual and may reflect a data issue rather than a meaningful change in positioning.

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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