Synopsys (NASDAQ:SNPS) Insider Sells $574,882.88 in Stock

Key Points

• Synopsys insider Janet Lee sold 1,144 shares for approximately $574,883, reducing her direct ownership by 6.47% to 16,534 shares.
• Synopsys reported quarterly EPS of $3.91 and revenue of $2.48 billion, beating estimates, while revenue increased 42.4% year over year. The stock traded near $502.67, with a market capitalization of about $96.3 billion and a high valuation near 89 times earnings.
• The board authorized a $1 billion share-repurchase program, while analysts remain broadly positive with a consensus “Moderate Buy” rating and an average price target of $584.11.

Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) insider Janet Lee sold 1,144 shares of the stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $502.52, for a total transaction of $574,882.88. Following the completion of the sale, the insider directly owned 16,534 shares of the company's stock, valued at $8,308,665.68. This represents a 6.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link.

Synopsys Price Performance

NASDAQ:SNPS traded down $2.50 during trading hours on Wednesday, hitting $502.67. 1,631,983 shares of the stock traded hands, compared to its average volume of 2,036,859. 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 1 year low of $362.55 and a 1 year high of $539.48. The company has a market cap of $96.33 billion, a price-to-earnings ratio of 88.81, a price-to-earnings-growth ratio of 1.99 and a beta of 1.21. The stock has a 50 day moving average price of $412.43 and a 200 day moving average price of $437.43.

Synopsys (NASDAQ:SNPS - Get Free Report) last announced its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (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 analysts' expectations of $2.44 billion. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The company's revenue for the quarter was up 42.4% compared to the same quarter last year. During the same period in the prior year, the company posted $3.39 earnings per share. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. Sell-side analysts forecast that Synopsys, Inc. will post 10.97 EPS for the current fiscal year.

Synopsys declared that its Board of Directors has authorized a stock repurchase program on Monday, October 5th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the semiconductor company to buy up to 1.1% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's board believes its stock is undervalued.

Hedge Funds Weigh In On Synopsys

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SNPS. BlackRock Inc. purchased a new position in Synopsys during the 2nd quarter valued at approximately $7,228,099,000. State Street Corp raised its holdings in shares of Synopsys by 0.3% during the 4th quarter. State Street Corp now owns 8,788,890 shares of the semiconductor company's stock worth $4,128,317,000 after acquiring an additional 28,532 shares in the last quarter. Van ECK Associates Corp raised its holdings in shares of Synopsys by 19.7% during the 2nd quarter. Van ECK Associates Corp now owns 3,457,249 shares of the semiconductor company's stock worth $1,542,175,000 after acquiring an additional 569,687 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Synopsys by 40.7% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,087,349 shares of the semiconductor company's stock valued at $1,377,174,000 after acquiring an additional 892,736 shares during the last quarter. Finally, Assenagon Asset Management S.A. boosted its position in shares of Synopsys by 39.5% during 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. 85.47% of the stock is owned by institutional investors.

Trending Headlines about Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: New AI chip-design alliances with OpenAI and Amazon reinforce Synopsys’ position as a key supplier of software used to design advanced AI semiconductors. The expanded Amazon relationship has been described as a potential $1 billion opportunity. Synopsys Is Up 17.7% After New AI Chip-Design Alliances With OpenAI And Amazon
• Positive Sentiment: Synopsys’ board authorized a $1 billion share-repurchase program, potentially covering about 1.1% of outstanding shares. Buybacks can support earnings per share and signal management believes the stock has long-term value. Stock Repurchase Program Declared by Synopsys
• Positive Sentiment: Recent commentary argues SNPS remains strategically important because AI chips generally require Synopsys software before reaching fabrication. Analysts and investors have also lifted fair-value estimates following the AI partnerships and Investor Day, suggesting the long-term growth outlook may offset concerns about acquisition debt and slower overall EDA growth. Synopsys Stock Fair Value Edges Higher After AI Deals And Investor Day
• Neutral Sentiment: Synopsys trades at a demanding valuation, with a price-to-earnings ratio near 89 and a PEG ratio near 2.0. A comparison with Progress Software highlights the debate over whether SNPS’ AI exposure justifies its premium relative to other software stocks. PRGS vs. SNPS: Which Stock Should Value Investors Buy Now?
• Negative Sentiment: CFO Sudhindra Kankanwadi sold a combined 12,170 shares for roughly $6.0 million across October 5 and 6, reducing his direct holdings by about 40%. Although insider sales do not necessarily indicate deteriorating fundamentals, the transactions may weigh on sentiment after the recent rally. Synopsys Insider Selling
• Negative Sentiment: One market analysis notes that SNPS shares have declined after several recent earnings beats, suggesting investor expectations are unusually high and that strong results may already be priced in. Synopsys Is Hot Again But a Pattern Has Emerged

Wall Street Analyst Weigh In

A number of equities research analysts have commented on SNPS shares. Mizuho decreased their price target on Synopsys from $600.00 to $550.00 and set an "outperform" rating on the stock in a report on Thursday, August 27th. Barclays started coverage on Synopsys in a research report on Friday, September 25th. They set an "overweight" rating for the company. Robert W. Baird raised Synopsys from a "neutral" rating to an "outperform" rating and lifted their target price for the company from $558.00 to $560.00 in a research note on Thursday, August 27th. Zacks Research raised Synopsys from a "hold" rating to a "strong-buy" rating in a report on Friday, October 2nd. Finally, UBS Group set a $570.00 price target on Synopsys in a research note on Thursday, August 27th. One research 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 given a Sell rating to the company's stock. According to MarketBeat.com, Synopsys currently has a consensus rating of "Moderate Buy" and an average target price of $584.11.

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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