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

Key Points

• Synopsys shares jumped after Roth Capital upgraded the stock to Buy, opening at $445.01 versus the prior close of $424.91 before trading around $432.44.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and average price target of $574.61, despite mixed actions from other firms.
• Synopsys reported quarterly EPS of $3.91 and revenue of $2.48 billion, beating estimates, while revenue increased 42.4% year over year; insiders have sold nearly $38 million of stock over the past three months.

Shares of Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) gapped up before the market opened on Friday after Roth Capital upgraded the stock to a buy rating. The stock had previously closed at $424.91, but opened at $445.01. Synopsys shares last traded at $432.4370, with a volume of 369,301 shares changing hands.

A number of other research firms also recently commented on SNPS. Morgan Stanley cut their price objective 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. Sanford C. Bernstein initiated coverage on shares of Synopsys in a research report on Friday. They set an "outperform" rating on the stock. UBS Group set a $570.00 price objective on shares of Synopsys in a report on Thursday, August 27th. Benchmark restated a "buy" rating and set a $570.00 price objective on shares of Synopsys in a research report on Thursday, August 27th. Finally, Zacks Research downgraded shares of Synopsys from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 21st. Fifteen analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $574.61.

Insider Buying and Selling at Synopsys

In other Synopsys news, insider Aart de Geus sold 24,641 shares of Synopsys stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $419.44, for a total value of $10,335,421.04. Following the sale, the insider owned 120,443 shares in the company, valued at $50,518,611.92. The trade was a 16.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 company's stock in a transaction on 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 transaction, the chief executive officer directly owned 76,865 shares in the company, valued at approximately $28,815,151.20. This trade represents a 15.97% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 89,245 shares of company stock valued at $37,992,919. 0.56% of the stock is owned by insiders.

Synopsys News Roundup

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: BNP Paribas upgraded SNPS to “Neutral” from “Underperform,” helping shares rise. The firm cited potential for Synopsys’ investor day to act as a positive catalyst, although its $420 price target is slightly below the current price. Synopsys Shares Rise After BNP Paribas Upgrade
• Positive Sentiment: Synopsys and Taiwan Semiconductor Manufacturing Company are expanding collaboration on AI and high-performance computing chip development. The agreement covers TSMC’s A14 process, agentic AI design workflows, CoWoS multi-die packaging, co-packaged optics, PCIe 7.0 and HBM4 IP—supporting long-term demand for Synopsys’ electronic design automation and semiconductor IP products. Synopsys and TSMC Partner to Accelerate AI Systems Innovation
• Positive Sentiment: Analysts maintain a consensus “Moderate Buy” rating, while a separate market commentary highlights SNPS for strong sales growth, cash flow and valuation metrics despite rising interest-rate concerns. Synopsys Receives Consensus Rating of Moderate Buy
• Neutral Sentiment: Discussion of how much investors could make if Synopsys rebounds reflects potential upside, but it is speculative rather than a new business or earnings catalyst. How Much Could Synopsys Stock Rebound
• Negative Sentiment: Cadence’s new AI-powered RTL Generation Agent reportedly reduced chip area and power in early testing, highlighting competitive pressure in automated chip-design tools and potentially challenging Synopsys’ growth outlook. Cadence’s New RTL Generation Agent

Hedge Funds Weigh In On Synopsys

A number of hedge funds have recently made changes to their positions in SNPS. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Synopsys in the 2nd quarter valued at about $747,400,000. Man Group plc purchased a new stake in shares of Synopsys during the second quarter worth approximately $55,900,000. Norges Bank acquired a new stake in Synopsys in the fourth quarter valued at approximately $730,197,000. Bank of America Corp DE purchased a new position in Synopsys in the second quarter worth approximately $539,986,000. Finally, SBI Okasan Asset Management Co.Ltd. purchased a new position in Synopsys in the fourth quarter worth approximately $1,699,000. Hedge funds and other institutional investors own 85.47% of the company's stock.

Synopsys Stock Up 1.9%

The firm's fifty day simple moving average is $400.07 and its 200 day simple moving average is $435.68. The company has a current ratio of 1.34, a quick ratio of 1.24 and a debt-to-equity ratio of 0.29. The company has a market cap of $82.95 billion, a price-to-earnings ratio of 76.47, a PEG ratio of 2.24 and a beta of 1.23.

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 for the quarter, beating analysts' consensus estimates of $3.67 by $0.24. The business had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.44 billion. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The company's revenue was up 42.4% on a year-over-year basis. During the same period last year, the business earned $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. Sell-side analysts predict that Synopsys, Inc. will post 10.97 earnings per share for the current year.

Synopsys Company Profile

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and related services. Its products help semiconductor and electronics companies design, verify, test and manufacture integrated circuits and complex electronic systems.

The company's EDA portfolio includes tools for digital and analog design, simulation, verification, physical implementation, signoff and manufacturing preparation. Synopsys also provides reusable semiconductor IP, including processor cores, interface technologies, embedded memories and security-related components, which customers can incorporate into system-on-chip designs.

Synopsys additionally offers software integrity and application security solutions that help organizations identify and manage vulnerabilities and risks in the software development lifecycle.

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