Wellington Management Group LLP Lowers Stake in Synopsys, Inc. $SNPS

Key Points

• Wellington Management reduced its Synopsys stake by 17.2% in the second quarter, selling 109,552 shares and retaining 529,043 shares worth approximately $236 million. Institutional investors and hedge funds collectively own 85.47% of SNPS.
• Synopsys delivered strong third-quarter results, with adjusted EPS of $3.91 exceeding estimates and revenue rising 42.4% year over year to $2.48 billion. Management also raised fiscal 2026 guidance, supported by EDA demand and the Ansys acquisition.
• The stock faces mixed signals: analysts maintain a “Moderate Buy” consensus with an average $561.28 price target, but valuation remains elevated at roughly 78 times earnings, while the CEO and CFO recently sold shares under pre-arranged trading plans.

Wellington Management Group LLP lessened its holdings in shares of Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 17.2% in the second quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 529,043 shares of the semiconductor company's stock after selling 109,552 shares during the quarter. Wellington Management Group LLP owned 0.28% of Synopsys worth $235,990,000 as of its most recent filing with the SEC.

Several other large investors have also recently added to or reduced their stakes in the stock. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Synopsys in the 2nd quarter valued at approximately $747,400,000. Norges Bank acquired a new stake in Synopsys during the fourth quarter worth about $730,197,000. Man Group plc acquired a new stake in shares of Synopsys during the 2nd quarter worth approximately $55,900,000. SBI Okasan Asset Management Co.Ltd. acquired a new stake in shares of Synopsys during the 4th quarter worth approximately $1,699,000. Finally, Czech National Bank lifted its holdings in shares of Synopsys by 4.6% in the 2nd quarter. Czech National Bank now owns 54,526 shares of the semiconductor company's stock worth $24,322,000 after purchasing an additional 2,421 shares during the last quarter. 85.47% of the stock is currently owned by institutional investors and hedge funds.

Synopsys News Roundup

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Strong Q3 performance: Synopsys reported adjusted earnings of $3.91 per share versus expectations of $3.67, while revenue reached $2.48 billion, up 42.4% year over year and ahead of estimates. Strength in electronic design automation (EDA) and the Ansys acquisition supported the results. SNPS Q3 Earnings Beat Estimates on EDA and Ansys Strength
• Positive Sentiment: Higher outlook and AI momentum: Management raised fiscal 2026 guidance, citing accelerating EDA demand, recovering Design IP activity, interest in agentic AI and additional opportunities from integrating Ansys. Fiscal 2026 EPS guidance is $15.04–$15.10, with revenue guidance reportedly raised to approximately $9.72 billion. SNPS Q3 Earnings Call Highlights EDA Acceleration, Outlook Raised
• Positive Sentiment: Analyst and strategic support: Goldman Sachs, Benchmark and Needham reaffirmed Buy ratings, with price targets ranging from $570 to $600. Elliott Investment Management also reportedly built a multibillion-dollar position, betting Synopsys can narrow its discount to peers. Elliott Bets Multibillion-Dollar Position on Closing Synopsys’ Peer Discount
• Neutral Sentiment: Commentators view Synopsys as a key supplier to major technology companies, including Nvidia, and believe Ansys has strengthened its competitive moat; however, the acquisition’s full contribution depends on successful integration and future synergies. SNPS in Right Place, Right Time?
• Negative Sentiment: Valuation and peer concerns: Following the earnings rally, investors are refocusing on valuation, with Synopsys trading at a high earnings multiple. A comparison with PDF Solutions also highlighted stronger growth and margin improvement at the smaller rival, potentially limiting near-term enthusiasm for SNPS. SNPS vs. PDFS: Which Semiconductor Software Stock Has an Edge?

Insiders Place Their Bets

In related news, CFO Shelagh Glaser sold 3,394 shares of the stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $450.02, for a total value of $1,527,367.88. Following the transaction, the chief financial officer owned 14,358 shares in the company, valued at approximately $6,461,387.16. This represents a 19.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the transaction, the chief executive officer directly owned 75,020 shares in the company, valued at approximately $34,431,179.20. The trade was a 16.29% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. 0.56% of the stock is currently owned by company insiders.

Synopsys Price Performance

SNPS opened at $442.61 on Monday. The stock has a fifty day moving average of $416.64 and a 200-day moving average of $440.14. The firm has a market capitalization of $84.82 billion, a P/E ratio of 78.20, a PEG ratio of 2.42 and a beta of 1.23. 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 12-month low of $366.00 and a 12-month high of $615.79.

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, topping analysts' consensus estimates of $3.67 by $0.24. The firm had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.44 billion. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The business's quarterly revenue was up 42.4% compared to the same quarter last year. During the same period last year, the company posted $3.39 EPS. 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 forecast that Synopsys, Inc. will post 11.03 EPS for the current fiscal year.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Wells Fargo & Company reduced their price objective on Synopsys from $535.00 to $450.00 and set an "equal weight" rating for the company in a research report on Tuesday, August 11th. Weiss Ratings raised Synopsys from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday. Morgan Stanley reduced their price target 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. Berenberg Bank set a $633.00 price objective on Synopsys in a report on Wednesday, May 27th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and set a $575.00 target price on shares of Synopsys in a report on Tuesday, August 25th. Twelve investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $561.28.

Synopsys Company Profile

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.

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