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

Key Points

• Synopsys, Inc. (NASDAQ:SNPS) has a consensus rating of “Moderate Buy” from seventeen analysts, with an average twelve-month price target of $585.33.
• Recent reports indicate that several analysts, including Citigroup and Bank of America, have downgraded their ratings and target prices for the stock, which has affected investor sentiment.
• Insiders have been actively selling shares, with notable transactions that indicate a significant decrease in ownership by executive officers, raising concerns about their confidence in the company’s future performance.

Shares of Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) have received a consensus rating of "Moderate Buy" from the seventeen analysts that are covering the stock, Marketbeat.com reports. Two research analysts have rated the stock with a sell recommendation, four have issued a hold recommendation and eleven have issued a buy recommendation on the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $585.3333.

Several analysts recently issued reports on SNPS shares. Citigroup cut shares of Synopsys from a "neutral" rating to an "underperform" rating in a report on Wednesday. Bank of America reaffirmed an "underperform" rating and issued a $525.00 price target (down from $625.00) on shares of Synopsys in a report on Wednesday, September 10th. The Goldman Sachs Group cut their price target on shares of Synopsys from $700.00 to $600.00 and set a "buy" rating on the stock in a report on Wednesday, September 10th. Robert W. Baird reissued a "neutral" rating and set a $535.00 target price (down from $670.00) on shares of Synopsys in a report on Wednesday, September 10th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Synopsys from $685.00 to $600.00 and set an "overweight" rating on the stock in a report on Wednesday, September 10th.

Synopsys Trading Down 2.9%

SNPS opened at $425.45 on Monday. The stock has a market capitalization of $79.03 billion, a PE ratio of 33.39, a P/E/G ratio of 5.60 and a beta of 1.14. The firm's fifty day moving average price is $590.39 and its 200 day moving average price is $507.16. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.62 and a quick ratio of 1.51. Synopsys has a 12-month low of $365.74 and a 12-month high of $651.73.

Insiders Place Their Bets

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

Institutional Trading of Synopsys

A number of institutional investors and hedge funds have recently modified their holdings of SNPS. Norges Bank acquired a new stake in shares of Synopsys during the second quarter worth $647,964,000. GAMMA Investing LLC grew its position in shares of Synopsys by 54,286.0% during the first quarter. GAMMA Investing LLC now owns 1,196,492 shares of the semiconductor company's stock worth $513,116,000 after acquiring an additional 1,194,292 shares during the last quarter. Nuveen LLC bought a new position in shares of Synopsys during the first quarter worth about $341,480,000. Pictet Asset Management Holding SA grew its position in shares of Synopsys by 38.3% during the first 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. Finally, Ameriprise Financial Inc. grew its position in shares of Synopsys by 29.1% during the second quarter. Ameriprise Financial Inc. now owns 2,598,874 shares of the semiconductor company's stock worth $1,333,095,000 after acquiring an additional 585,494 shares during the last quarter. 85.47% of the stock is owned by institutional investors and hedge funds.

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.

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