Synopsys (NASDAQ:SNPS) Shares Cross Above Two Hundred Day Moving Average - Here's What Happened

Key Points

• Synopsys shares rose 5.6%, trading above the 200-day moving average of $444.79 and reaching as high as $457.64.
• Analyst sentiment remains favorable, with a consensus rating of “Moderate Buy” and an average price target of $575; several firms recently raised their targets.
• The company beat quarterly earnings and revenue expectations, reported 42.4% year-over-year revenue growth, and authorized a $1 billion share-repurchase plan, although insiders have sold more than $51 million of stock over the past 90 days.

Synopsys, Inc. (NASDAQ:SNPS - Get Free Report)'s stock price passed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $444.79 and traded as high as $457.64. Synopsys shares last traded at $454.33, with a volume of 2,809,591 shares traded.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on SNPS shares. Robert W. Baird upgraded shares of Synopsys from a "neutral" rating to an "outperform" rating and boosted their price target for the stock from $558.00 to $560.00 in a research report on Thursday, August 27th. Weiss Ratings downgraded shares of Synopsys from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday, September 11th. Needham & Company LLC increased their price objective on shares of Synopsys from $580.00 to $620.00 and gave the company a "buy" rating in a report on Monday, October 12th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $640.00 target price (up from $590.00) on shares of Synopsys in a research note on Thursday, October 1st. Finally, Roth Capital upgraded Synopsys to a "buy" rating in a report on Friday, September 25th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, Synopsys presently has an average rating of "Moderate Buy" and a consensus target price of $575.00.

Synopsys Stock Up 5.6%

The business has a fifty day moving average of $430.87 and a 200 day moving average of $444.79. The company has a market capitalization of $87.07 billion, a PE ratio of 80.27, a PEG ratio of 1.75 and a beta of 1.21. The company has a current ratio of 1.34, a quick ratio of 1.24 and a debt-to-equity ratio of 0.29.

Synopsys (NASDAQ:SNPS - Get Free Report) last released its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, beating the consensus estimate of $3.67 by $0.24. The company had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.44 billion. Synopsys had a return on equity of 6.24% and a net margin of 11.43%. Synopsys's revenue 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. Equities research analysts anticipate that Synopsys, Inc. will post 11.01 EPS for the current year.

Synopsys declared that its Board of Directors has authorized a share repurchase plan on Monday, October 5th that allows the company to repurchase $1 billion in outstanding shares. This repurchase authorization allows the semiconductor company to purchase up to 1.1% of its shares through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Insider Buying and Selling at Synopsys

In other Synopsys news, insider Janet Lee sold 1,144 shares of the stock in a transaction that occurred on Tuesday, October 6th. The shares were sold at an average price of $502.52, for a total transaction of $574,882.88. Following the sale, the insider directly owned 16,534 shares in the company, valued at $8,308,665.68. This represents a 6.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Sassine Ghazi sold 14,604 shares of the firm's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $374.88, for a total transaction of $5,474,747.52. Following the completion of the transaction, the chief executive officer directly owned 76,865 shares of the company's stock, valued at $28,815,151.20. This represents a 15.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 117,163 shares of company stock worth $51,366,457. 0.56% of the stock is currently owned by company insiders.

Institutional Trading of Synopsys

Large investors have recently modified their holdings of the stock. Elevation Wealth Partners LLC boosted its stake in shares of Synopsys by 96.4% in the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company's stock valued at $25,000 after buying an additional 27 shares in the last quarter. Oak Grove Capital LLC raised its position in Synopsys by 1.1% in the third quarter. Oak Grove Capital LLC now owns 2,898 shares of the semiconductor company's stock worth $1,260,000 after acquiring an additional 32 shares in the last quarter. Kintegral Advisory LLC raised its position in Synopsys by 0.6% in the third quarter. Kintegral Advisory LLC now owns 5,812 shares of the semiconductor company's stock worth $2,528,000 after acquiring an additional 32 shares in the last quarter. Personal CFO Solutions LLC raised its position in Synopsys by 1.4% in the first quarter. Personal CFO Solutions LLC now owns 2,682 shares of the semiconductor company's stock worth $1,063,000 after acquiring an additional 36 shares in the last quarter. Finally, Centaurus Financial Inc. lifted its holdings in Synopsys by 2.6% in the first quarter. Centaurus Financial Inc. now owns 1,434 shares of the semiconductor company's stock valued at $569,000 after acquiring an additional 36 shares during the period. Hedge funds and other institutional investors own 85.47% of the company's stock.

Synopsys Company Profile

Synopsys, Inc is an electronic design automation (EDA) and semiconductor intellectual property company serving the global semiconductor and electronics industries. Its software helps engineers design, verify, test and manufacture advanced integrated circuits and electronic systems.

The company's products and services support digital and analog design, functional verification, design-for-test, manufacturing and semiconductor engineering workflows. Synopsys also provides reusable semiconductor IP, including processor cores, interface technologies, security solutions and other components used in system-on-chip designs.

In addition to its semiconductor design offerings, Synopsys provides software development and application security tools intended to help organizations identify and manage vulnerabilities and risks across the software development lifecycle.

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