Synopsys, Inc. $SNPS Shares Sold by California State Teachers Retirement System

Key Points

• California State Teachers Retirement System reduced its Synopsys stake by 5.8%, selling 16,810 shares and retaining 272,251 shares valued at approximately $121.4 million. Institutional investors collectively own 85.47% of the company.
• Synopsys exceeded quarterly expectations with adjusted EPS of $3.91 versus $3.67 expected and revenue of $2.48 billion versus $2.44 billion, representing 42.4% year-over-year growth. The company issued fiscal 2026 EPS guidance of $15.04–$15.10.
• Analysts maintain a generally favorable outlook, with a “Moderate Buy” consensus and an average price target of $561.28, but the stock’s valuation remains elevated at a P/E of 69.58. Insider selling and concerns about Ansys integration costs and debt add risks.

California State Teachers Retirement System cut its stake in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 5.8% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 272,251 shares of the semiconductor company's stock after selling 16,810 shares during the quarter. California State Teachers Retirement System owned approximately 63.42% of Synopsys worth $121,443,004 as of its most recent SEC filing.

Other hedge funds have also made changes to their positions in the company. Ameritas Advisory Services LLC grew its stake in Synopsys by 399.3% during the 2nd quarter. Ameritas Advisory Services LLC now owns 3,011 shares of the semiconductor company's stock worth $1,343,000 after buying an additional 2,408 shares during the last quarter. Wedmont Private Capital lifted its stake in Synopsys by 6.1% in the second quarter. Wedmont Private Capital now owns 3,194 shares of the semiconductor company's stock valued at $1,423,000 after buying an additional 185 shares during the last quarter. HB Wealth Management LLC boosted its holdings in shares of Synopsys by 14.9% during the second quarter. HB Wealth Management LLC now owns 8,351 shares of the semiconductor company's stock valued at $3,725,000 after acquiring an additional 1,081 shares during the period. Saudi Central Bank boosted its holdings in shares of Synopsys by 80.4% during the second quarter. Saudi Central Bank now owns 12,739 shares of the semiconductor company's stock valued at $5,682,000 after acquiring an additional 5,677 shares during the period. Finally, Angeles Wealth Management LLC grew its position in shares of Synopsys by 11.9% during the second quarter. Angeles Wealth Management LLC now owns 830 shares of the semiconductor company's stock worth $370,000 after acquiring an additional 88 shares during the last quarter. Institutional investors own 85.47% of the company's stock.

Synopsys Price Performance

NASDAQ SNPS opened at $393.84 on Monday. Synopsys, Inc. has a 1 year low of $366.00 and a 1 year high of $615.79. The business's fifty day moving average is $412.27 and its two-hundred day moving average is $439.48. The stock has a market capitalization of $75.48 billion, a P/E ratio of 69.58, a P/E/G ratio of 2.16 and a beta of 1.23. 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 10.97 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of analysts recently weighed in on SNPS shares. KeyCorp reaffirmed an "overweight" rating on shares of Synopsys in a report on Wednesday, August 19th. Needham & Company LLC reissued a "buy" rating and set a $580.00 target price on shares of Synopsys in a research note on Thursday, August 27th. Berenberg Bank set a $633.00 price target on shares of Synopsys in a research note on Wednesday, May 27th. BNP Paribas Exane lifted their price target on Synopsys from $425.00 to $450.00 and gave the company an "underperform" rating in a report on Thursday, May 28th. Finally, Citigroup increased their price objective on Synopsys from $600.00 to $610.00 and gave the stock a "buy" rating in a report on Thursday, May 28th. Twelve research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $561.28.

Insider Activity at Synopsys

In other Synopsys news, insider Aart de Geus sold 25,000 shares of the company's stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $441.76, for a total transaction of $11,044,000.00. Following the completion of the sale, the insider directly owned 120,421 shares of the company's stock, valued at approximately $53,197,180.96. This represents a 17.19% decrease in their ownership of the stock. The transaction was disclosed in a filing 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 transaction of $6,702,192.88. Following the sale, the chief executive officer directly owned 75,020 shares of the company's stock, valued at $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. Insiders sold 92,638 shares of company stock worth $40,747,732 in the last quarter. 0.56% of the stock is owned by company insiders.

Key Headlines Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys reported fiscal third-quarter revenue of approximately $2.48 billion and non-GAAP EPS of $3.91, exceeding analyst estimates of $2.44 billion and $3.67, respectively. Revenue grew 42.4% year over year, underscoring continued demand for electronic-design automation and semiconductor IP. Synopsys Results Analysis
• Positive Sentiment: Analysts continue to see significant long-term upside, with reported price targets generally ranging from $450 to $610 and a consensus “Moderate Buy” rating. The bullish case centers on Synopsys’ strategic importance to advanced chip and AI design. Synopsys Wall Street Price Targets
• Neutral Sentiment: Institutional positioning is mixed: 769 investors added SNPS shares in their latest reported quarter, while 764 reduced positions. This suggests continued interest but limited consensus among large investors. Synopsys Institutional Activity
• Negative Sentiment: The earnings beat did not translate into a sufficiently large outlook increase for a stock priced for stronger growth. Full-year guidance implies approximately $9.715 billion of revenue and $15.07 of non-GAAP EPS at the midpoint, prompting a potential “sell-the-news” reaction.
• Negative Sentiment: Investors remain concerned about execution and margin pressure from the Ansys integration. Synopsys reported roughly $236.3 million in restructuring charges during the first nine months of fiscal 2026, while acquired-intangible amortization and approximately $10 billion of debt add to acquisition-related financial risks. Synopsys Ansys Integration Analysis
• Negative Sentiment: Executive Chair Aart de Geus sold 49,641 shares for approximately $21.4 million across August 28, August 31 and September 1. The transactions were made under a pre-arranged Rule 10b5-1 plan, reducing their value as a discretionary bearish signal, but the selling may still weigh on sentiment. Synopsys Insider Selling
• Negative Sentiment: SNPS remains sensitive to higher interest rates and semiconductor-sector weakness. Its valuation remains demanding, with a reported P/E ratio above 69, while the stock is trading below its 200-day moving average. Is Synopsys Stock Underperforming the Nasdaq?

Synopsys Company Profile

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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