Synopsys, Inc. (NASDAQ:SNPS) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Synopsys, Inc. has received an average rating of "Moderate Buy" from analysts, with one hold rating and thirteen buy ratings among the fourteen research firms covering the stock.
• The average twelve-month price target for Synopsys from analysts is $622.33, with significant updates from various analysts raising price objectives to as high as $660.00.
• Insider transactions indicate significant selling activity, with executives selling a total of 27,686 shares valued at over $13 million in the last 90 days, representing a decrease in their ownership stakes.

Shares of Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) have earned an average recommendation of "Moderate Buy" from the fourteen ratings firms that are currently covering the firm, MarketBeat Ratings reports. One research analyst has rated the stock with a hold recommendation and thirteen have given a buy recommendation to the company. The average twelve-month target price among analysts that have covered the stock in the last year is $622.33.

SNPS has been the subject of several analyst reports. Mizuho reduced their price target on Synopsys from $650.00 to $600.00 and set an "outperform" rating for the company in a report on Tuesday, April 15th. The Goldman Sachs Group initiated coverage on Synopsys in a report on Thursday, July 10th. They set a "buy" rating and a $620.00 price target for the company. Needham & Company LLC restated a "buy" rating and set a $660.00 price target (up from $650.00) on shares of Synopsys in a report on Tuesday, July 15th. KeyCorp raised their price target on Synopsys from $540.00 to $610.00 and gave the company an "overweight" rating in a report on Thursday, July 10th. Finally, Bank of America raised their price target on Synopsys from $575.00 to $625.00 and gave the company a "buy" rating in a report on Wednesday, July 16th.

Insiders Place Their Bets

In other Synopsys news, CRO Richard S. Mahoney sold 9,010 shares of the firm's stock in a transaction dated 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 transaction, the executive directly owned 1,485 shares of the company's stock, valued at approximately $699,746.85. This trade represents a 85.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Shelagh Glaser sold 7,310 shares of the firm's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $485.72, for a total value of $3,550,613.20. Following the completion of the transaction, the chief financial officer directly owned 15,291 shares in the company, valued at $7,427,144.52. The trade was a 32.34% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 27,686 shares of company stock valued at $13,001,048. Insiders own 0.62% of the company's stock.

Institutional Trading of Synopsys

Institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. lifted its holdings in Synopsys by 2.4% in the 1st quarter. Vanguard Group Inc. now owns 14,829,770 shares of the semiconductor company's stock worth $6,359,747,000 after purchasing an additional 346,994 shares in the last quarter. Capital World Investors increased its stake in Synopsys by 1.6% in the 4th quarter. Capital World Investors now owns 7,280,182 shares of the semiconductor company's stock worth $3,533,526,000 after acquiring an additional 114,893 shares during the last quarter. Price T Rowe Associates Inc. MD increased its stake in Synopsys by 21.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,902,696 shares of the semiconductor company's stock worth $2,864,933,000 after acquiring an additional 1,045,326 shares during the last quarter. Geode Capital Management LLC increased its stake in Synopsys by 2.3% in the 4th quarter. Geode Capital Management LLC now owns 3,357,165 shares of the semiconductor company's stock worth $1,625,230,000 after acquiring an additional 75,298 shares during the last quarter. Finally, Pictet Asset Management Holding SA increased its stake in Synopsys by 38.3% in the 1st quarter. Pictet Asset Management Holding SA now owns 2,432,596 shares of the semiconductor company's stock worth $1,043,518,000 after acquiring an additional 673,837 shares during the last quarter. 85.47% of the stock is currently owned by institutional investors.

Synopsys Trading Up 1.5%

SNPS stock traded up $9.54 on Friday, reaching $645.35. The company's stock had a trading volume of 1,917,305 shares, compared to its average volume of 2,440,959. The business has a fifty day simple moving average of $524.65 and a two-hundred day simple moving average of $489.58. Synopsys has a 12-month low of $365.74 and a 12-month high of $651.73. The firm has a market cap of $100.13 billion, a PE ratio of 46.60, a PEG ratio of 4.21 and a beta of 1.12. The company has a debt-to-equity ratio of 1.01, a quick ratio of 6.85 and a current ratio of 7.02.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted its quarterly earnings data on Wednesday, May 28th. The semiconductor company reported $3.67 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.40 by $0.27. The business had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.60 billion. Synopsys had a return on equity of 17.09% and a net margin of 34.77%. The firm's quarterly revenue was up 10.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $3.00 earnings per share. As a group, research analysts forecast that Synopsys will post 10.64 EPS for the current year.

Synopsys Company Profile

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.