Synopsys (NASDAQ:SNPS) Shares Gap Up After Analyst Upgrade

Key Points

• Synopsys shares jumped 13% after Rosenblatt Securities raised its price target from $575 to $620 and maintained a Buy rating; shares opened at $467.85 versus a prior close of $434.94.
• Analyst sentiment remains broadly positive, with 16 Buy, four Hold, and one Sell rating, producing a “Moderate Buy” consensus and an average price target of $581.
• Insiders sold 89,245 shares worth approximately $38 million in the last quarter under pre-arranged Rule 10b5-1 plans, while the company recently reported an earnings and revenue beat with year-over-year revenue growth of 42.4%.

Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) gapped up prior to trading on Thursday after Rosenblatt Securities raised their price target on the stock from $575.00 to $620.00. The stock had previously closed at $434.94, but opened at $467.85. Rosenblatt Securities currently has a buy rating on the stock. Synopsys shares last traded at $490.9520, with a volume of 1,410,966 shares trading hands.

SNPS has been the topic of a number of other reports. KeyCorp boosted their price target on shares of Synopsys from $600.00 to $605.00 and gave the stock an "overweight" rating in a research report on Thursday. HSBC cut Synopsys from a "buy" rating to a "reduce" rating in a report on Friday, September 25th. Piper Sandler raised Synopsys from a "neutral" rating to an "overweight" rating and increased their price target for the company from $450.00 to $550.00 in a report on Tuesday, June 23rd. Weiss Ratings downgraded Synopsys from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, September 11th. Finally, Sanford C. Bernstein initiated coverage on Synopsys in a research note on Friday, September 25th. They set an "outperform" rating on the stock. Sixteen equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $581.00.

Insider Activity at Synopsys

In other news, insider Aart de Geus sold 24,641 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $419.44, for a total value of $10,335,421.04. Following the completion of the transaction, the insider owned 120,443 shares of the company's stock, valued at approximately $50,518,611.92. This trade represents a 16.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 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. Insiders sold a total of 89,245 shares of company stock valued at $37,992,919 in the last quarter. 0.56% of the stock is owned by insiders.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: FY2027 outlook exceeded consensus. Synopsys forecast revenue of approximately $11.1 billion to $11.2 billion, compared with the roughly $10.8 billion consensus estimate, and adjusted EPS of $19.04 to $19.12 versus consensus of $16.78. Management also outlined approximately 15% long-term growth and expanding non-GAAP operating margins. What's Going On With Synopsys Shares Thursday?
• Positive Sentiment: Large Amazon agreement adds revenue visibility. Amazon Web Services signed a multiyear custom-silicon agreement worth more than $1 billion. The deal uses Synopsys’ silicon intellectual property and AI-powered engineering tools, while moving the IP business toward a license-plus-royalty model that could benefit from rising chip-production volumes. Synopsys and Amazon Web Services sign chip design licensing deal
• Positive Sentiment: OpenAI partnership strengthens the AI growth narrative. The companies will develop “GPT-Synopsys,” a specialized model combining OpenAI technology with Synopsys’ electronic-design-automation tools. The agreement includes tool licensing, joint research and go-to-market efforts, and a shared-revenue framework. OpenAI and Synopsys announce GPT-Synopsys
• Positive Sentiment: Capital returns and analyst support added to the bullish reaction. Synopsys announced plans for a $1 billion share repurchase, while Rosenblatt raised its price target from $575 to $620 and maintained a Buy rating. Bank of America also reportedly lifted its target after viewing the long-term earnings targets as well above consensus. Synopsys growth outlook, buyback and partnerships
• Neutral Sentiment: The outlook implies substantial execution requirements, particularly for converting AI partnerships into commercial revenue and achieving the projected royalty growth. With Synopsys trading at a high earnings multiple, investors may remain sensitive to any guidance shortfall.

Institutional Investors Weigh In On Synopsys

Several institutional investors have recently modified their holdings of SNPS. Sankala Group LLC purchased a new stake in Synopsys during the 4th quarter worth about $25,000. Elevation Wealth Partners LLC lifted its stake in Synopsys by 96.4% during the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company's stock worth $25,000 after purchasing an additional 27 shares during the last quarter. Osbon Capital Management LLC acquired a new position in Synopsys in the second quarter valued at approximately $25,000. IMG Wealth Management Inc. purchased a new position in Synopsys in the second quarter valued at approximately $28,000. Finally, Phillip James Consulting Co. acquired a new stake in Synopsys during the fourth quarter worth approximately $36,000. 85.47% of the stock is owned by hedge funds and other institutional investors.

Synopsys Stock Up 13.0%

The firm's 50-day moving average price is $403.35 and its two-hundred day moving average price is $435.48. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34. The firm has a market cap of $94.19 billion, a PE ratio of 86.94, a P/E/G ratio of 2.27 and a beta of 1.23.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted 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 net margin of 11.43% and a return on equity of 6.24%. The firm had revenue of $2.48 billion for the quarter, compared to the consensus estimate of $2.44 billion. During the same period last year, the firm posted $3.39 EPS. The company's revenue 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. As a group, equities research analysts expect that Synopsys, Inc. will post 10.97 EPS for the current fiscal year.

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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