Stifel Nicolaus Issues Pessimistic Forecast for Synopsys (NASDAQ:SNPS) Stock Price

Key Points

• Stifel Nicolaus has reduced its price target for Synopsys (NASDAQ:SNPS) from $650.00 to $550.00, indicating a potential downside of 9.00% based on the stock's previous close.
• Multiple brokerages have issued negative ratings on Synopsys, with Citigroup downgrading the stock from "neutral" to "underperform" and Bank of America setting a target price of $525.00.
• Despite the pessimistic ratings, a majority of analysts still maintain a "buy" rating for Synopsys, reflecting a consensus target price of $605.00 among 11 analysts rating the stock.

Synopsys (NASDAQ:SNPS - Get Free Report) had its price objective cut by stock analysts at Stifel Nicolaus from $650.00 to $550.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm presently has a "buy" rating on the semiconductor company's stock. Stifel Nicolaus' target price suggests a potential downside of 9.00% from the company's previous close.

Several other brokerages also recently commented on SNPS. Citigroup downgraded Synopsys from a "neutral" rating to an "underperform" rating in a research note on Wednesday. Wells Fargo & Company reiterated a "positive" rating on shares of Synopsys in a research note on Wednesday, August 27th. JPMorgan Chase & Co. reduced their target price on Synopsys from $685.00 to $600.00 and set an "overweight" rating for the company in a research note on Wednesday. Bank of America downgraded Synopsys from a "buy" rating to an "underperform" rating and set a $525.00 target price for the company. in a research note on Wednesday. Finally, Rosenblatt Securities reiterated a "neutral" rating and set a $605.00 target price (down from $650.00) on shares of Synopsys in a research note on Wednesday. Eleven equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $605.00.

Synopsys Stock Down 0.8%

Synopsys stock opened at $604.37 on Wednesday. The firm has a market capitalization of $93.77 billion, a PE ratio of 43.64, a P/E/G ratio of 4.00 and a beta of 1.14. The company's 50-day moving average is $597.69 and its 200-day moving average is $507.82. Synopsys has a fifty-two week low of $365.74 and a fifty-two week high of $651.73. The company has a debt-to-equity ratio of 1.01, a current ratio of 7.02 and a quick ratio of 6.85.

Insider Buying and Selling at Synopsys

In other Synopsys news, CRO Richard S. Mahoney sold 9,010 shares of Synopsys stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $471.21, for a total value of $4,245,602.10. Following the completion of the transaction, the executive directly owned 1,485 shares of the company's stock, valued at $699,746.85. The trade was a 85.85% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Shelagh Glaser sold 3,655 shares of Synopsys stock in a transaction on Friday, September 5th. The shares were sold at an average price of $609.77, for a total value of $2,228,709.35. Following the completion of the transaction, the chief financial officer directly owned 15,317 shares of the company's stock, valued at $9,339,847.09. This represents a 19.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 24,031 shares of company stock valued at $13,168,999 in the last three months. Corporate insiders own 0.62% of the company's stock.

Hedge Funds Weigh In On Synopsys

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Independence Bank of Kentucky raised its holdings in Synopsys by 120.0% in the 2nd quarter. Independence Bank of Kentucky now owns 55 shares of the semiconductor company's stock valued at $28,000 after acquiring an additional 30 shares in the last quarter. Ameriflex Group Inc. acquired a new position in shares of Synopsys during the 4th quarter worth $29,000. Cornerstone Planning Group LLC raised its holdings in shares of Synopsys by 275.0% during the 1st quarter. Cornerstone Planning Group LLC now owns 60 shares of the semiconductor company's stock worth $25,000 after buying an additional 44 shares in the last quarter. Saudi Central Bank acquired a new position in shares of Synopsys during the 1st quarter worth $26,000. Finally, Princeton Global Asset Management LLC raised its holdings in shares of Synopsys by 481.8% during the 2nd quarter. Princeton Global Asset Management LLC now owns 64 shares of the semiconductor company's stock worth $33,000 after buying an additional 53 shares in the last quarter. 85.47% of the stock is owned by institutional investors and hedge funds.

About Synopsys

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.

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