Synopsys, Inc. $SNPS Stock Position Lowered by Ethic Inc.

Key Points

• Ethic Inc. reduced its Synopsys stake by 12.5% in the third quarter, selling 2,546 shares and retaining 17,860 shares valued at $7.77 million. Hedge funds and other institutional investors own 85.47% of the company’s stock.
• Synopsys beat quarterly estimates, reporting EPS of $3.91 versus $3.67 expected and revenue of $2.48 billion, up 42.4% year over year. The company also authorized a $1 billion share buyback.
• Analysts maintain a “Moderate Buy” consensus rating with a $575 average price target. Recent insider sales included transactions by the CFO and company insider Aart de Geus.

Ethic Inc. cut its stake in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 12.5% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 17,860 shares of the semiconductor company's stock after selling 2,546 shares during the quarter. Ethic Inc.'s holdings in Synopsys were worth $7,768,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of SNPS. BlackRock Inc. acquired a new stake in shares of Synopsys in the 2nd quarter worth $7,228,099,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Synopsys in the second quarter valued at about $747,400,000. Bank of New York Mellon Corp acquired a new position in shares of Synopsys during the second quarter worth about $692,074,000. Bank of America Corp DE acquired a new position in shares of Synopsys during the second quarter worth about $539,986,000. Finally, Legal & General Group Plc purchased a new position in Synopsys during the second quarter worth about $491,923,000. 85.47% of the stock is currently owned by hedge funds and other institutional investors.

Synopsys Stock Performance

NASDAQ:SNPS opened at $450.46 on Monday. The company has a quick ratio of 1.24, a current ratio of 1.34 and a debt-to-equity ratio of 0.29. Synopsys, Inc. has a fifty-two week low of $362.55 and a fifty-two week high of $539.48. The stock has a market cap of $86.33 billion, a PE ratio of 79.59, a price-to-earnings-growth ratio of 1.43 and a beta of 1.18. The firm's fifty day simple moving average is $441.61 and its 200-day simple moving average is $442.27.

Synopsys (NASDAQ:SNPS - Get Free Report) last announced its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 EPS 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 firm had revenue of $2.48 billion during the quarter, compared to analysts' expectations of $2.44 billion. During the same quarter last year, the business earned $3.39 earnings per share. The business'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. Analysts expect that Synopsys, Inc. will post 11.01 earnings per share for the current fiscal year.

Synopsys announced that its board has authorized a stock buyback plan on Monday, October 5th that permits the company to buy back $1 billion in outstanding shares. This repurchase authorization permits the semiconductor company to repurchase up to 1.1% of its shares through open market purchases. Share repurchase plans are generally a sign that the company's board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

SNPS has been the subject of a number of recent analyst reports. Needham & Company LLC raised their price objective on shares of Synopsys from $580.00 to $620.00 and gave the company a "buy" rating in a research report on Monday, October 12th. Wells Fargo & Company lifted their price objective on Synopsys from $475.00 to $540.00 and gave the company an "overweight" rating in a report on Thursday, October 1st. KeyCorp boosted their target price on Synopsys from $600.00 to $605.00 and gave the stock an "overweight" rating in a research report on Thursday, October 1st. Robert W. Baird raised Synopsys from a "neutral" rating to an "outperform" rating and increased their target price for the stock from $558.00 to $560.00 in a research note on Thursday, August 27th. Finally, Bank of America raised their price target on Synopsys from $500.00 to $600.00 in a report on Thursday, October 1st. One research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, Synopsys has a consensus rating of "Moderate Buy" and a consensus target price of $575.00.

Insider Activity at Synopsys

In related news, CFO Sudhindra Kankanwadi sold 9,170 shares of the company's stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $500.00, for a total value of $4,585,000.00. Following the sale, the chief financial officer owned 22,717 shares in the company, valued at $11,358,500. This represents a 28.76% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Aart de Geus sold 24,641 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $419.44, for a total value of $10,335,421.04. Following the completion of the transaction, the insider directly owned 120,443 shares of the company's stock, valued at $50,518,611.92. The trade was a 16.98% 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. Insiders have sold a total of 117,163 shares of company stock valued at $51,366,457 in the last 90 days. Insiders own 0.56% of the company's stock.

About Synopsys

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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