Synopsys, Inc. (NASDAQ:SNPS) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts remain constructive on Synopsys, with the stock earning a consensus “Moderate Buy” from 17 brokerages. The average 12-month price target is about $570.06.
• Several firms recently raised price targets on SNPS, including Rosenblatt, Stifel Nicolaus, Morgan Stanley, KeyCorp and Citigroup, reflecting continued optimism even as ratings remain mixed.
• Insiders sold shares in pre-arranged transactions, including CFO Shelagh Glaser and CEO Sassine Ghazi, while institutional investors still own a large majority of the company at 85.47%.

Shares of Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the seventeen brokerages that are currently covering the stock, MarketBeat reports. One investment analyst has rated the stock with a sell rating, five have issued a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company. The average 1 year target price among analysts that have issued ratings on the stock in the last year is $570.0625.

SNPS has been the topic of a number of analyst reports. Rosenblatt Securities increased their price objective on Synopsys from $530.00 to $575.00 and gave the company a "buy" rating in a report on Tuesday, May 26th. Morgan Stanley upped their target price on Synopsys from $480.00 to $525.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 28th. Stifel Nicolaus increased their price target on Synopsys from $550.00 to $600.00 and gave the company a "buy" rating in a report on Thursday, May 28th. KeyCorp reissued an "overweight" rating on shares of Synopsys in a research report on Thursday, May 28th. Finally, Citigroup boosted their price objective on shares of Synopsys from $600.00 to $610.00 and gave the stock a "buy" rating in a research note on Thursday, May 28th.

Insider Buying and Selling at Synopsys

In other news, CFO Shelagh Glaser sold 3,394 shares of the firm's stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $450.02, for a total value of $1,527,367.88. Following the sale, the chief financial officer directly owned 14,358 shares of the company's stock, valued at approximately $6,461,387.16. This trade represents a 19.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of Synopsys stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $458.96, for a total value of $6,702,192.88. Following the completion of the transaction, the chief executive officer owned 75,020 shares in the company, valued at $34,431,179.20. The trade was a 16.29% decrease in their ownership of the stock. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 0.56% of the company's stock.

Institutional Trading of Synopsys

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SNPS. Ballast Inc. acquired a new position in shares of Synopsys during the second quarter worth approximately $226,000. Nolet Wealth Management LLC acquired a new stake in shares of Synopsys in the second quarter worth $215,000. E. Ohman J or Asset Management AB increased its position in Synopsys by 5.8% during the second quarter. E. Ohman J or Asset Management AB now owns 7,249 shares of the semiconductor company's stock worth $3,234,000 after acquiring an additional 400 shares during the period. Handelsbanken Fonder AB increased its position in Synopsys by 4.4% during the second quarter. Handelsbanken Fonder AB now owns 69,814 shares of the semiconductor company's stock worth $31,142,000 after acquiring an additional 2,914 shares during the period. Finally, Financial Management Professionals Inc. raised its stake in Synopsys by 859.5% during the 2nd quarter. Financial Management Professionals Inc. now owns 3,032 shares of the semiconductor company's stock valued at $1,352,000 after purchasing an additional 2,716 shares during the last quarter. Institutional investors and hedge funds own 85.47% of the company's stock.

Synopsys Stock Up 0.5%

Shares of SNPS stock traded up $2.13 on Friday, hitting $445.50. The company's stock had a trading volume of 839,512 shares, compared to its average volume of 1,858,163. The stock has a market capitalization of $85.30 billion, a price-to-earnings ratio of 103.12, a P/E/G ratio of 2.62 and a beta of 1.22. Synopsys has a fifty-two week low of $376.18 and a fifty-two week high of $651.73. The firm's fifty day moving average price is $477.80 and its 200-day moving average price is $460.71. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.43 and a quick ratio of 1.32.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted its earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, topping the consensus estimate of $3.15 by $0.20. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. The firm had revenue of $2.28 billion for the quarter, compared to the consensus estimate of $2.25 billion. During the same period in the prior year, the business posted $3.67 earnings per share. The business's quarterly revenue was up 41.9% on a year-over-year basis. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. Research analysts anticipate that Synopsys will post 10.65 EPS for the current year.

About Synopsys

Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.

In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.

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