Griffin Securities Predicts Reduced Earnings for Synopsys

Key Points

• Griffin Securities has lowered its FY2025 earnings estimates for Synopsys to $8.05 per share, a significant drop from the previous estimate of $10.69.
• Several analysts, including those from KeyCorp and JPMorgan Chase, have revised their price targets for Synopsys, impacting the stock's rating landscape.
• Synopsys shares have recently decreased by 2.9% and have a current market cap of $79.03 billion.

Synopsys, Inc. (NASDAQ:SNPS - Free Report) - Equities researchers at Griffin Securities lowered their FY2025 earnings estimates for Synopsys in a report issued on Wednesday, September 10th. Griffin Securities analyst J. Vleeschhouwer now forecasts that the semiconductor company will post earnings per share of $8.05 for the year, down from their prior forecast of $10.69. The consensus estimate for Synopsys' current full-year earnings is $10.64 per share. Griffin Securities also issued estimates for Synopsys' Q4 2025 earnings at $1.52 EPS, Q1 2026 earnings at $1.93 EPS, Q2 2026 earnings at $2.08 EPS, Q3 2026 earnings at $2.26 EPS, Q4 2026 earnings at $3.01 EPS and FY2026 earnings at $9.28 EPS.

Several other research analysts have also issued reports on SNPS. KeyCorp decreased their price target on shares of Synopsys from $660.00 to $590.00 and set an "overweight" rating on the stock in a research report on Wednesday, September 10th. JPMorgan Chase & Co. decreased their price target on shares of Synopsys from $685.00 to $600.00 and set an "overweight" rating on the stock in a research report on Wednesday, September 10th. Citigroup lowered shares of Synopsys from a "neutral" rating to an "underperform" rating in a research report on Wednesday. Morgan Stanley decreased their price target on shares of Synopsys from $715.00 to $510.00 and set an "overweight" rating on the stock in a research report on Thursday. Finally, Needham & Company LLC decreased their price target on shares of Synopsys from $660.00 to $550.00 and set a "buy" rating on the stock in a research report on Wednesday, September 10th. Eleven equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $585.33.

Synopsys Trading Down 2.9%

Synopsys stock opened at $425.45 on Monday. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.51 and a current ratio of 1.62. The firm has a market cap of $79.03 billion, a price-to-earnings ratio of 33.39, a price-to-earnings-growth ratio of 5.60 and a beta of 1.14. Synopsys has a 1 year low of $365.74 and a 1 year high of $651.73. The firm's 50 day moving average price is $590.39 and its two-hundred day moving average price is $507.16.

Institutional Investors Weigh In On Synopsys

Institutional investors have recently modified their holdings of the stock. Valeo Financial Advisors LLC lifted its stake in shares of Synopsys by 12.5% in the 2nd quarter. Valeo Financial Advisors LLC now owns 641 shares of the semiconductor company's stock valued at $329,000 after purchasing an additional 71 shares during the last quarter. Centaurus Financial Inc. lifted its stake in shares of Synopsys by 22.5% in the 2nd quarter. Centaurus Financial Inc. now owns 1,334 shares of the semiconductor company's stock valued at $684,000 after purchasing an additional 245 shares during the last quarter. Orion Porfolio Solutions LLC lifted its stake in shares of Synopsys by 1.2% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 25,706 shares of the semiconductor company's stock valued at $13,179,000 after purchasing an additional 307 shares during the last quarter. Thrivent Financial for Lutherans lifted its stake in shares of Synopsys by 1.3% in the 2nd quarter. Thrivent Financial for Lutherans now owns 6,933 shares of the semiconductor company's stock valued at $3,549,000 after purchasing an additional 90 shares during the last quarter. Finally, MASTERINVEST Kapitalanlage GmbH acquired a new stake in shares of Synopsys in the 2nd quarter valued at $2,477,000. Institutional investors and hedge funds own 85.47% of the company's stock.

Insider Buying and Selling at Synopsys

In other Synopsys news, CFO Shelagh Glaser sold 3,655 shares of Synopsys stock in a transaction on Friday, September 5th. The shares were sold at an average price of $609.77, for a total transaction of $2,228,709.35. Following the completion of the sale, the chief financial officer owned 15,317 shares of the company's stock, valued at $9,339,847.09. This trade represents a 19.27% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CRO Richard S. Mahoney sold 9,010 shares of Synopsys stock in a transaction on Wednesday, June 18th. The shares were sold at an average price of $471.21, for a total transaction of $4,245,602.10. Following the sale, the executive directly owned 1,485 shares of the company's stock, valued at $699,746.85. This trade represents a 85.85% decrease in their position. The disclosure for this sale can be found here. Insiders sold 24,031 shares of company stock valued at $13,168,999 in the last quarter. Company insiders own 0.62% of the company's stock.

About Synopsys

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.

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