Synopsys (NASDAQ:SNPS) CFO Sells $1,454,340.00 in Stock

Key Points

• Synopsys CFO Sudhindra Kankanwadi sold 3,000 shares for approximately $1.45 million, reducing his position by 11.67% to 22,717 shares. He also recently sold an additional 9,170 shares for $4.59 million.
• Synopsys shares rose 3.4% to $505.17, while the company reported quarterly earnings and revenue above analyst expectations, with revenue increasing 42.4% year over year.
• The board approved a $1 billion share buyback, allowing the company to repurchase up to 1.1% of outstanding shares; analysts maintain a “Moderate Buy” consensus with an average price target of $584.11.

Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) CFO Sudhindra Kankanwadi sold 3,000 shares of the business's stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $484.78, for a total value of $1,454,340.00. Following the completion of the sale, the chief financial officer owned 22,717 shares of the company's stock, valued at $11,012,747.26. The trade was a 11.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link.

Sudhindra Kankanwadi also recently made the following trade(s):

• On Tuesday, October 6th, Sudhindra Kankanwadi sold 9,170 shares of Synopsys stock. The shares were sold at an average price of $500.00, for a total value of $4,585,000.00.

Synopsys Stock Up 3.4%

Shares of NASDAQ:SNPS traded up $16.70 during trading hours on Tuesday, hitting $505.17. The company's stock had a trading volume of 2,737,287 shares, compared to its average volume of 2,364,103. The company has a market capitalization of $96.81 billion, a price-to-earnings ratio of 89.25, a P/E/G ratio of 1.99 and a beta of 1.21. The firm's fifty day moving average price is $412.43 and its 200 day moving average price is $437.43. 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.

Synopsys (NASDAQ:SNPS - Get Free Report) last released its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 EPS for the quarter, topping the consensus estimate 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 revenue for the quarter was up 42.4% compared to the same quarter last year. During the same period in the previous 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. As a group, research analysts expect that Synopsys, Inc. will post 10.97 EPS for the current year.

Synopsys announced that its board has approved a share buyback plan on Monday, October 5th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the semiconductor company to reacquire up to 1.1% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's leadership believes its stock is undervalued.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys announced new AI chip-design alliances with OpenAI and Amazon, reinforcing its position as a supplier of electronic-design-automation tools for the growing AI infrastructure market. The expanded Amazon relationship is described as a potential $1 billion catalyst. Synopsys Is Up 17.7% After New AI Chip-Design Alliances With OpenAI And Amazon
• Positive Sentiment: Synopsys initiated an accelerated share-repurchase agreement with JPMorgan to buy back approximately $1 billion of stock, equal to as much as 1.1% of outstanding shares. The program may support earnings per share and signals management’s confidence in the company’s long-term value. Synopsys Initiates $1 Billion Accelerated Share Repurchase Agreement
• Neutral Sentiment: A valuation comparison with Progress Software examines whether SNPS offers better value among computer-software stocks. The discussion is relevant because Synopsys has strong AI-growth exposure, but investors must weigh that opportunity against its premium valuation. PRGS vs. SNPS: Which Stock Should Value Investors Buy Now?
• Negative Sentiment: Despite beating earnings estimates three times this year, Synopsys has reportedly seen its shares decline after each earnings release. The recurring pattern suggests investors may continue to sell the stock on strong results if expectations are already high. Synopsys is Hot Again But a Pattern Has Emerged

Analyst Upgrades and Downgrades

SNPS has been the topic of several recent analyst reports. Benchmark reaffirmed a "buy" rating and set a $570.00 target price on shares of Synopsys in a research report on Thursday, August 27th. Weiss Ratings lowered Synopsys from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, September 11th. Needham & Company LLC reiterated a "buy" rating and issued a $580.00 price objective on shares of Synopsys in a report on Thursday, August 27th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $640.00 price objective on shares of Synopsys in a research note on Thursday, October 1st. Finally, UBS Group set a $570.00 price objective on Synopsys in a research note on Thursday, August 27th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $584.11.

Institutional Investors Weigh In On Synopsys

Institutional investors have recently modified their holdings of the company. Byrne Asset Management LLC raised its holdings in shares of Synopsys by 10,693.3% in the 3rd quarter. Byrne Asset Management LLC now owns 1,619 shares of the semiconductor company's stock valued at $704,000 after buying an additional 1,604 shares during the period. Rockland Trust Co. purchased a new position in Synopsys during the 3rd quarter valued at about $244,000. Polaris Financial Partners acquired a new position in Synopsys in the 3rd quarter valued at about $41,000. Sequoia Financial Advisors LLC grew its position in Synopsys by 19.0% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 14,866 shares of the semiconductor company's stock valued at $6,631,000 after acquiring an additional 2,377 shares in the last quarter. Finally, Gemmer Asset Management LLC purchased a new stake in Synopsys during the second quarter worth about $224,000. 85.47% of the stock is owned by institutional investors and hedge funds.

Synopsys Company Profile

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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