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

Key Points

• Analysts have given Synopsys, Inc. (NASDAQ:SNPS) an average rating of "Moderate Buy", with thirteen out of fourteen recommending a buy and one hold.
• The average twelve-month price target for Synopsys shares among brokerages is $630.67, with several analysts recently raising their targets to between $610.00 and $715.00.
• In the latest quarterly earnings report, Synopsys posted a $3.67 EPS, exceeding estimates, with a revenue of $1.60 billion and a year-over-year growth of 10.3%.

Shares of Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) have received an average rating of "Moderate Buy" from the fourteen analysts that are presently covering the stock, Marketbeat Ratings reports. One research analyst has rated the stock with a hold recommendation and thirteen have issued a buy recommendation on the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $630.6667.

A number of analysts recently weighed in on SNPS shares. KeyCorp boosted their target price on Synopsys from $540.00 to $610.00 and gave the stock an "overweight" rating in a research report on Thursday, July 10th. The Goldman Sachs Group began coverage on shares of Synopsys in a research report on Thursday, July 10th. They set a "buy" rating and a $620.00 price target on the stock. Morgan Stanley reaffirmed an "overweight" rating and issued a $715.00 price target (up from $540.00) on shares of Synopsys in a research note on Monday, August 11th. Piper Sandler lifted their price target on Synopsys from $615.00 to $660.00 and gave the stock an "overweight" rating in a research note on Monday, July 21st. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $660.00 price target (up from $650.00) on shares of Synopsys in a research note on Tuesday, July 15th.

Synopsys Price Performance

Shares of NASDAQ:SNPS opened at $601.13 on Thursday. The firm has a market capitalization of $93.27 billion, a price-to-earnings ratio of 43.40, a PEG ratio of 4.06 and a beta of 1.15. The stock's 50 day moving average is $565.67 and its 200-day moving average is $499.85. Synopsys has a twelve month low of $365.74 and a twelve month high of $651.73. The company has a quick ratio of 6.85, a current ratio of 7.02 and a debt-to-equity ratio of 1.01.

Synopsys (NASDAQ:SNPS - Get Free Report) last released its quarterly earnings results on Wednesday, May 28th. The semiconductor company reported $3.67 EPS for the quarter, beating analysts' consensus estimates of $3.40 by $0.27. The business had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.60 billion. Synopsys had a return on equity of 17.09% and a net margin of 34.77%.Synopsys's quarterly revenue was up 10.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.00 EPS. Synopsys has set its FY 2025 guidance at 15.110-15.190 EPS. Q3 2025 guidance at 3.820-3.87 EPS. Sell-side analysts forecast that Synopsys will post 10.64 EPS for the current fiscal year.

Insider Transactions at Synopsys

In related news, CEO Sassine Ghazi sold 11,366 shares of the company's stock in a transaction on Monday, June 2nd. The stock was sold at an average price of $457.93, for a total transaction of $5,204,832.38. Following the completion of the sale, the chief executive officer owned 71,589 shares in the company, valued at approximately $32,782,750.77. This represents a 13.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Shelagh Glaser sold 7,310 shares of the company'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 of the company's stock, valued at approximately $7,427,144.52. This trade represents a 32.34% decrease in their position. The disclosure for this sale can be found here. Insiders sold 27,686 shares of company stock worth $13,001,048 over the last quarter. 0.62% of the stock is currently owned by insiders.

Institutional Trading of Synopsys

Institutional investors have recently made changes to their positions in the business. Cornerstone Planning Group LLC lifted its position in 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 acquiring an additional 44 shares during the period. Saudi Central Bank acquired a new stake in Synopsys during the 1st quarter worth about $26,000. Clal Insurance Enterprises Holdings Ltd lifted its position in Synopsys by 441.7% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 65 shares of the semiconductor company's stock worth $28,000 after acquiring an additional 53 shares during the period. Independence Bank of Kentucky raised its stake in shares of Synopsys by 120.0% during the 2nd quarter. Independence Bank of Kentucky now owns 55 shares of the semiconductor company's stock valued at $28,000 after buying an additional 30 shares during the last quarter. Finally, Ameriflex Group Inc. purchased a new position in shares of Synopsys during the 4th quarter valued at about $29,000. Institutional investors and hedge funds own 85.47% of the company's stock.

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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