Synopsys (NASDAQ:SNPS) Stock Sees Heavy Call Option Buying

Key Points

• Call-option activity more than doubled: Traders purchased 12,317 Synopsys call options, compared with typical daily volume of 6,097, signaling unusually high investor interest.
• Insiders continued selling shares: Executives sold 89,245 shares worth approximately $38 million over the past 90 days, though the transactions were conducted under pre-arranged Rule 10b5-1 plans.
• The outlook remains broadly positive: Seventeen analysts rate Synopsys a Buy, with a consensus price target of $584.11; recent partnerships with Amazon and OpenAI, along with stronger-than-expected guidance, support the growth case, though the stock’s elevated valuation creates execution risk.

Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) was the target of unusually large options trading activity on Thursday. Stock traders purchased 12,317 call options on the stock. This is an increase of 102% compared to the typical daily volume of 6,097 call options.

Insiders Place Their Bets

In related news, insider Aart de Geus sold 25,000 shares of the business's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $441.76, for a total transaction of $11,044,000.00. Following the transaction, the insider directly owned 120,421 shares in the company, valued at $53,197,180.96. The trade was a 17.19% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,604 shares of the stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $374.88, for a total value of $5,474,747.52. Following the completion of the sale, the chief executive officer owned 76,865 shares of the company's stock, valued at approximately $28,815,151.20. This trade represents a 15.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 89,245 shares of company stock worth $37,992,919. Insiders own 0.56% of the company's stock.

Hedge Funds Weigh In On Synopsys

A number of institutional investors have recently modified their holdings of SNPS. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Synopsys in the second quarter valued at $747,400,000. Man Group plc purchased a new stake in shares of Synopsys during the 2nd quarter worth about $55,900,000. Bank of America Corp DE acquired a new stake in shares of Synopsys during the 2nd quarter valued at about $539,986,000. Nykredit A S acquired a new stake in shares of Synopsys during the 2nd quarter valued at about $23,158,000. Finally, Czech National Bank increased its stake 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 valued at $24,322,000 after purchasing an additional 2,421 shares in the last quarter. Hedge funds and other institutional investors own 85.47% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on SNPS shares. Rosenblatt Securities upped their price objective on shares of Synopsys from $575.00 to $620.00 and gave the company a "buy" rating in a report on Thursday. Weiss Ratings cut shares of Synopsys from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, September 11th. Roth Capital raised shares of Synopsys to a "buy" rating in a research report on Friday, September 25th. Piper Sandler upgraded shares of Synopsys from a "neutral" rating to an "overweight" rating and upped their price target for the company from $450.00 to $550.00 in a research note on Tuesday, June 23rd. Finally, Morgan Stanley decreased their price target on shares of Synopsys from $525.00 to $500.00 and set an "equal weight" rating for the company in a report on Wednesday, August 19th. Seventeen analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Synopsys has a consensus rating of "Moderate Buy" and a consensus price target of $584.11.

Synopsys Stock Performance

Shares of NASDAQ:SNPS traded up $47.51 during trading on Thursday, hitting $482.45. The stock had a trading volume of 3,508,400 shares, compared to its average volume of 2,006,814. 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 has a 12-month low of $362.55 and a 12-month high of $539.48. The stock has a market capitalization of $92.46 billion, a price-to-earnings ratio of 84.91, a price-to-earnings-growth ratio of 2.27 and a beta of 1.23. The stock has a 50-day simple moving average of $403.35 and a two-hundred day simple moving average of $435.48.

Synopsys (NASDAQ:SNPS - Get Free Report) last issued its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 EPS for the quarter, beating analysts' consensus estimates of $3.67 by $0.24. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The firm had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.44 billion. During the same quarter in the prior year, the firm earned $3.39 earnings per share. Synopsys's revenue for the quarter was up 42.4% on a year-over-year basis. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. On average, equities research analysts expect that Synopsys will post 10.97 earnings per share for the current fiscal year.

Synopsys News Summary

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Fiscal 2027 outlook exceeded consensus estimates. Synopsys forecast revenue of approximately $11.1 billion to $11.2 billion and adjusted EPS of $19.04 to $19.12, above analyst expectations of roughly $10.8 billion and $16.78, respectively. What's Going On With Synopsys Shares Thursday?
• Positive Sentiment: Amazon became a major silicon-IP customer. Synopsys and Amazon Web Services signed a multiyear custom-chip agreement valued at more than $1 billion. The deal includes Synopsys IP licensing, AI-powered engineering collaboration and a shift toward license-plus-royalty economics, potentially supporting recurring revenue and future upside as chip production grows. Synopsys and Amazon Web Services sign chip design licensing deal worth more than $1 billion
• Positive Sentiment: The OpenAI partnership strengthens Synopsys’ AI strategy. The companies plan to develop “GPT-Synopsys,” a specialized model combining OpenAI technology with Synopsys’ electronic-design-automation tools. The agreement includes tool licensing, joint research and development, go-to-market efforts and shared revenue, reinforcing Synopsys’ position as a potential beneficiary of AI-driven chip-design demand. OpenAI and Synopsys Announce GPT-Synopsys
• Positive Sentiment: Analysts raised their expectations. Rosenblatt Securities lifted its price target to $620 and maintained a Buy rating, while reports said Synopsys’ long-term earnings targets were well ahead of consensus. The company also announced a planned $1 billion share repurchase program. Synopsys Stock Rises as 15% Growth Target Meets $1B Buyback and OpenAI Deal
• Neutral Sentiment: Synopsys is attracting unusually high investor attention. However, its elevated valuation means the stock may remain sensitive to execution, customer concentration, and whether the announced partnerships translate into revenue and profit growth. Synopsys Is a Trending Stock

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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