Synopsys, Inc. $SNPS Stock Holdings Increased by Grandfield & Dodd LLC

Key Points

• Grandfield & Dodd increased its Synopsys stake by 3.7% in the third quarter to 74,648 shares worth approximately $32.5 million. Institutional investors and hedge funds collectively own 85.47% of SNPS.
• Analysts maintain a positive outlook, with a consensus “Moderate Buy” rating and an average price target of $575. Recent targets range from $550 to $640.
• Synopsys reported quarterly revenue of $2.48 billion, up 42.4% year over year, and earnings of $3.91 per share, beating estimates. The board also authorized a $1 billion share-repurchase program, while insiders sold more than $51.4 million of stock during the quarter.

Grandfield & Dodd LLC grew its holdings in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 3.7% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 74,648 shares of the semiconductor company's stock after buying an additional 2,673 shares during the period. Synopsys accounts for about 1.7% of Grandfield & Dodd LLC's holdings, making the stock its 14th largest holding. Grandfield & Dodd LLC's holdings in Synopsys were worth $32,467,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also made changes to their positions in SNPS. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Synopsys in the second quarter valued at approximately $747,400,000. Man Group plc acquired a new stake in shares of Synopsys during the second quarter worth about $55,900,000. Nykredit A S acquired a new position in Synopsys during the second quarter worth approximately $23,158,000. Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust increased 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 acquiring an additional 5,476 shares during the period. Finally, Bank of America Corp DE purchased a new stake in shares of Synopsys in the second quarter valued at about $539,986,000. 85.47% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on SNPS. Weiss Ratings downgraded shares of Synopsys from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, September 11th. Rothschild & Co Redburn reduced their target price on shares of Synopsys from $560.00 to $550.00 and set a "buy" rating on the stock in a report on Wednesday, September 23rd. Bank of America raised their price objective on Synopsys from $500.00 to $600.00 in a report on Thursday, October 1st. Rosenblatt Securities boosted their target price on shares of Synopsys from $575.00 to $620.00 and gave the company a "buy" rating in a report on Thursday, October 1st. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $640.00 price target (up from $590.00) on shares of Synopsys in a research note on Thursday, October 1st. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $575.00.

Synopsys Stock Down 4.6%

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

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 analysts' consensus estimates of $3.67 by $0.24. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The business had revenue of $2.48 billion for the quarter, compared to analysts' expectations of $2.44 billion. During the same quarter last year, the company earned $3.39 EPS. The company's revenue for the quarter 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. Equities analysts anticipate that Synopsys, Inc. will post 11.01 EPS for the current year.

Synopsys announced that its board has authorized a share repurchase program on Monday, October 5th that permits the company to buy back $1 billion in shares. This buyback authorization permits the semiconductor company to buy up to 1.1% of its shares through open market purchases. Share buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In other Synopsys news, CEO Sassine Ghazi sold 14,604 shares of the business's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $374.88, for a total transaction of $5,474,747.52. Following the sale, the chief executive officer owned 76,865 shares in the company, valued at approximately $28,815,151.20. The trade was a 15.97% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Janet Lee sold 1,144 shares of the stock in a transaction dated Tuesday, October 6th. The stock was sold at an average price of $502.52, for a total value of $574,882.88. Following the completion of the sale, the insider directly owned 16,534 shares of the company's stock, valued at approximately $8,308,665.68. This represents a 6.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 117,163 shares of company stock valued at $51,366,457. Insiders own 0.56% of the company's stock.

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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