Vaughan Nelson Investment Management L.P. Sells 11,835 Shares of Synopsys, Inc. $SNPS

Key Points

• Vaughan Nelson Investment Management reduced its Synopsys stake by 4.8%, selling 11,835 shares and retaining 233,382 shares valued at approximately $104.1 million. Institutional investors collectively own 85.47% of the company.
• Synopsys reported quarterly EPS of $3.35, topping estimates of $3.15, while revenue rose 41.9% year over year to $2.28 billion. The stock opened at $411.75, well below its 12-month high of $626.24.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $565.06, although some analysts have raised valuation concerns and executives recently sold shares under pre-arranged plans.

Vaughan Nelson Investment Management L.P. lessened its holdings in Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 4.8% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 233,382 shares of the semiconductor company's stock after selling 11,835 shares during the quarter. Vaughan Nelson Investment Management L.P. owned 0.12% of Synopsys worth $104,105,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also added to or reduced their stakes in the business. Norges Bank bought a new position in shares of Synopsys during the fourth quarter valued at about $730,197,000. State Street Corp increased its holdings in shares of Synopsys by 20.6% in the third quarter. State Street Corp now owns 8,760,358 shares of the semiconductor company's stock worth $4,322,273,000 after buying an additional 1,493,912 shares during the period. Farallon Capital Management LLC bought a new stake in shares of Synopsys in the 4th quarter valued at about $469,344,000. Assenagon Asset Management S.A. lifted its stake in shares of Synopsys by 39.5% in the 2nd quarter. Assenagon Asset Management S.A. now owns 2,455,402 shares of the semiconductor company's stock valued at $1,095,281,000 after acquiring an additional 695,146 shares during the last quarter. Finally, Primecap Management Co. CA boosted its holdings in Synopsys by 743.6% during the 4th quarter. Primecap Management Co. CA now owns 734,800 shares of the semiconductor company's stock valued at $345,150,000 after acquiring an additional 647,700 shares during the period. 85.47% of the stock is owned by institutional investors.

Synopsys Price Performance

SNPS opened at $411.75 on Friday. The company has a current ratio of 1.43, a quick ratio of 1.32 and a debt-to-equity ratio of 0.33. The company has a market cap of $78.84 billion, a price-to-earnings ratio of 95.31, a price-to-earnings-growth ratio of 2.42 and a beta of 1.23. The stock has a fifty day simple moving average of $426.49 and a two-hundred day simple moving average of $443.50. Synopsys, Inc. has a 12-month low of $366.00 and a 12-month high of $626.24.

Synopsys (NASDAQ:SNPS - Get Free Report) last announced its earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, beating analysts' consensus estimates of $3.15 by $0.20. The firm had revenue of $2.28 billion for the quarter, compared to analysts' expectations of $2.25 billion. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. The company's quarterly revenue was up 41.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $3.67 EPS. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. Research analysts predict that Synopsys, Inc. will post 10.65 earnings per share for the current fiscal year.

Synopsys News Summary

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys’ AI initiatives across chip design, verification and simulation could improve customer productivity and reinforce its position in the semiconductor software market. This supports the long-term growth case, particularly as demand for AI chips expands. Can SNPS Leverage AI to Accelerate Chip Design and Drive Growth?
• Positive Sentiment: Recent coverage remains bullish on Synopsys’ potential to reach $650, citing approximately 42% revenue growth, raised guidance and the completed $35 billion acquisition. However, the price target is speculative and depends on investors assigning greater value to the company’s growth prospects. Prediction: Synopsys Will Hit $650 on This Date
• Positive Sentiment: Strength in memory and storage stocks, along with continued investor demand for semiconductor-focused ETFs, indicates that enthusiasm for AI and the broader chip ecosystem remains supportive for Synopsys’ electronic-design-automation business. Memory Stocks Stay Strong With SanDisk, SK Hynix, and Western Digital Leading the Storage Stack
• Neutral Sentiment: General Counsel Janet Lee is leaving the role but transitioning to an advisory position. The orderly handoff may limit disruption, although leadership changes can create near-term uncertainty. Synopsys Announces General Counsel Janet Lee's Departure and Advisory Role Transition
• Negative Sentiment: Wells Fargo lowered its expectations for Synopsys’ stock, which can weigh on sentiment and reinforce concerns that the shares’ valuation does not yet reflect the company’s growth potential. Wells Fargo Has Lowered Expectations for Synopsys Stock Price
• Negative Sentiment: Fidelity’s warning that the semiconductor cycle may be nearing a peak introduces a broader sector risk. If chip spending or AI-related enthusiasm cools, high-growth suppliers such as Synopsys could face valuation pressure despite solid fundamentals. Semiconductor Flows Stay Sticky Despite Cycle-Peak Warning

Insider Activity

In other Synopsys news, 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 value of $6,702,192.88. Following the sale, the chief executive officer owned 75,020 shares in the company, valued at approximately $34,431,179.20. This represents a 16.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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. Also, CFO Shelagh Glaser sold 3,394 shares of the firm's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the transaction, the chief financial officer directly owned 14,358 shares of the company's stock, valued at $6,461,387.16. This represents a 19.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.56% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on SNPS shares. KeyCorp reaffirmed an "overweight" rating on shares of Synopsys in a research note on Thursday, May 28th. BNP Paribas Exane lifted their target price on shares of Synopsys from $425.00 to $450.00 and gave the stock an "underperform" rating in a research note on Thursday, May 28th. Stifel Nicolaus upped their price target on shares of Synopsys from $550.00 to $600.00 and gave the company a "buy" rating in a report on Thursday, May 28th. Morgan Stanley increased their price target on shares of Synopsys from $480.00 to $525.00 and gave the company an "equal weight" rating in a research report on Thursday, May 28th. Finally, Berenberg Bank set a $633.00 price objective on shares of Synopsys in a research report on Wednesday, May 27th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $565.06.

About Synopsys

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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