Synopsys, Inc. $SNPS Shares Sold by Welch & Forbes LLC

Key Points

• Welch & Forbes cut its Synopsys stake by 10% in the third quarter, selling 3,345 shares and retaining 30,064 shares valued at about $13.1 million.
• Synopsys insiders sold 117,163 shares worth roughly $51.4 million over the past 90 days; the reported CEO and founder sales were made under pre-arranged trading plans.
• Synopsys beat quarterly earnings and revenue estimates, with revenue up 42.4% year over year. Analysts’ consensus rating is “Moderate Buy” with a $575 price target, and the company authorized a $1 billion share buyback.

Welch & Forbes LLC lowered its stake in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 10.0% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 30,064 shares of the semiconductor company's stock after selling 3,345 shares during the period. Welch & Forbes LLC's holdings in Synopsys were worth $13,076,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in SNPS. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Synopsys in the second quarter worth $747,400,000. Man Group plc acquired a new position in shares of Synopsys in the 2nd quarter valued at $55,900,000. Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust grew its holdings in shares of Synopsys by 21.3% in the 3rd quarter. Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust now owns 31,144 shares of the semiconductor company's stock valued at $13,546,000 after buying an additional 5,476 shares during the period. Nykredit A S acquired a new position in shares of Synopsys in the 2nd quarter valued at $23,158,000. Finally, Bank of America Corp DE bought a new stake in shares of Synopsys in the 2nd quarter valued at $539,986,000. Institutional investors own 85.47% of the company's stock.

Insider Activity at Synopsys

In other Synopsys news, insider Aart de Geus sold 24,641 shares of the stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $419.44, for a total transaction of $10,335,421.04. Following the completion of the transaction, the insider owned 120,443 shares in the company, valued at approximately $50,518,611.92. This represents a 16.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,604 shares of Synopsys stock in a transaction dated Thursday, October 15th. The shares were 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 in the company, valued at $35,576,196.60. This represents a 15.97% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 117,163 shares of company stock valued at $51,366,457. 0.56% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on SNPS. Roth Capital raised Synopsys to a "buy" rating in a research note on Friday, September 25th. Mizuho reduced their target price on Synopsys from $600.00 to $550.00 and set an "outperform" rating on the stock in a report on Thursday, August 27th. Weiss Ratings cut Synopsys from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, September 11th. Sanford C. Bernstein initiated coverage on Synopsys in a research note on Friday, September 25th. They issued an "outperform" rating for the company. Finally, Zacks Research upgraded Synopsys from a "hold" rating to a "strong-buy" rating in a report on Friday, October 2nd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Synopsys currently has a consensus rating of "Moderate Buy" and a consensus price target of $575.00.

Synopsys Stock Performance

Shares of SNPS opened at $466.97 on Tuesday. 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, Inc. has a twelve month low of $362.55 and a twelve month high of $539.48. The firm's 50 day moving average price is $442.10 and its two-hundred day moving average price is $442.00. The firm has a market cap of $89.49 billion, a P/E ratio of 82.50, a PEG ratio of 1.47 and a beta of 1.18.

Synopsys (NASDAQ:SNPS - Get Free Report) last released its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, beating the consensus estimate of $3.67 by $0.24. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The company had revenue of $2.48 billion during the quarter, compared to analysts' expectations of $2.44 billion. During the same quarter in the prior year, the company earned $3.39 earnings per share. The business's quarterly revenue was up 42.4% compared to the same quarter last year. 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, analysts forecast that Synopsys, Inc. will post 11.01 EPS for the current fiscal year.

Synopsys declared that its board has initiated a share buyback program on Monday, October 5th that permits the company to repurchase $1 billion in shares. This buyback authorization permits the semiconductor company to reacquire up to 1.1% of its shares through open market purchases. Stock buyback programs are generally a sign that the company's board of directors believes its shares are undervalued.

Synopsys Profile

Synopsys, Inc develops software, semiconductor intellectual property (IP) and services used to design and verify electronic systems. Its electronic design automation (EDA) tools help customers create, simulate, test and validate chips and other complex electronic products, while its IP portfolio provides reusable building blocks for semiconductor designs.

The company also offers software security and quality tools that help developers identify vulnerabilities and assess applications throughout the software development process.

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