Synopsys, Inc. $SNPS Stock: State of Alaska Department of Revenue Cuts Stake

Key Points

• Alaska’s Department of Revenue cut its Synopsys stake by 10.1% in the third quarter, selling 3,629 shares and retaining 32,391 shares valued at approximately $14.1 million. Institutional investors collectively own 85.47% of the company.
• Synopsys insiders have also been selling shares, including the CEO and CFO; insiders sold 102,559 shares worth roughly $44.6 million over the past three months.
• Despite the selling, Synopsys reported quarterly revenue growth of 42.4% and beat EPS estimates, while its board authorized a $1 billion share buyback. Analysts maintain a “Moderate Buy” consensus with an average price target of $571.78.

State of Alaska Department of Revenue reduced its position in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 10.1% in the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 32,391 shares of the semiconductor company's stock after selling 3,629 shares during the quarter. State of Alaska Department of Revenue's holdings in Synopsys were worth $14,087,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in Synopsys during the second quarter valued at about $747,400,000. Man Group plc bought a new position in shares of Synopsys in the second quarter worth about $55,900,000. Nykredit A S purchased a new position in shares of Synopsys during the 2nd quarter valued at about $23,158,000. Bank of America Corp DE purchased a new position in shares of Synopsys during the 2nd quarter valued at about $539,986,000. Finally, Integrated Wealth Concepts LLC lifted its position in shares of Synopsys by 88.6% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 6,816 shares of the semiconductor company's stock valued at $3,040,000 after buying an additional 3,202 shares in the last quarter. Hedge funds and other institutional investors own 85.47% of the company's stock.

Insider Activity at Synopsys

In other news, insider Aart de Geus sold 24,641 shares of the business's stock in a transaction 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 transaction, the insider owned 120,443 shares of the company's stock, valued at approximately $50,518,611.92. The trade was a 16.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Sudhindra Kankanwadi sold 9,170 shares of the company's stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $500.00, for a total transaction of $4,585,000.00. Following the transaction, the chief financial officer owned 22,717 shares of the company's stock, valued at approximately $11,358,500. This represents a 28.76% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 102,559 shares of company stock worth $44,607,141. 0.56% of the stock is currently owned by corporate insiders.

Synopsys Price Performance

Shares of NASDAQ SNPS traded down $13.84 during mid-day trading on Thursday, reaching $466.09. The company's stock had a trading volume of 1,549,640 shares, compared to its average volume of 2,047,488. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.34 and a quick ratio of 1.24. Synopsys, Inc. has a 52 week low of $362.55 and a 52 week high of $539.48. The stock has a fifty day moving average of $425.55 and a two-hundred day moving average of $440.80. The firm has a market capitalization of $89.32 billion, a PE ratio of 82.21, a P/E/G ratio of 2.02 and a beta of 1.21.

Synopsys (NASDAQ:SNPS - Get Free Report) last issued its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.67 by $0.24. Synopsys had a return on equity of 6.24% and a net margin of 11.43%. The company had revenue of $2.48 billion for the quarter, compared to the consensus estimate of $2.44 billion. During the same quarter last year, the company earned $3.39 EPS. The firm's quarterly revenue was up 42.4% on a year-over-year basis. 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, sell-side analysts anticipate that Synopsys, Inc. will post 10.97 EPS for the current fiscal year.

Synopsys announced that its Board of Directors has initiated a stock buyback program on Monday, October 5th that permits the company to buy back $1.00 billion in shares. This repurchase authorization permits the semiconductor company to purchase up to 1.1% of its shares through open market purchases. Share repurchase programs are often an indication that the company's board believes its shares are undervalued.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the stock. BNP Paribas Exane increased their target price on shares of Synopsys from $420.00 to $475.00 and gave the stock a "neutral" rating in a report on Thursday, October 1st. KeyCorp lifted their price target on shares of Synopsys from $600.00 to $605.00 and gave the company an "overweight" rating in a report on Thursday, October 1st. JPMorgan Chase & Co. dropped their price target on shares of Synopsys from $650.00 to $600.00 in a research report on Thursday, August 27th. Morgan Stanley reduced their price objective on shares of Synopsys from $525.00 to $500.00 and set an "equal weight" rating for the company in a research note on Wednesday, August 19th. Finally, Robert W. Baird raised shares of Synopsys from a "neutral" rating to an "outperform" rating and increased their price objective for the stock from $558.00 to $560.00 in a research note on Thursday, August 27th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, Synopsys currently has an average rating of "Moderate Buy" and a consensus target price of $571.78.

About Synopsys

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and software tools used to design, verify, and manufacture advanced electronic systems. Its solutions support the development of semiconductors, systems-on-chip, and electronic products across the design cycle, from initial specification and architecture through testing and production.

The company's offerings include digital and custom integrated-circuit design tools, simulation and verification software, physical design and signoff products, and semiconductor IP such as processor cores, interface technologies, and foundational components.

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