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

Key Points

• Analysts remain moderately bullish: Synopsys has a consensus “Moderate Buy” rating from 18 analysts, with 10 buys and two strong buys. The average 12-month price target is approximately $570, while recent targets range as high as $633.
• Quarterly results exceeded expectations: Synopsys reported adjusted earnings of $3.35 per share versus the $3.15 consensus estimate, while revenue rose 41.9% year over year to $2.28 billion. Shares opened at $400.82, down 0.8% in the cited session.
• Insiders reduced their holdings: The CFO and CEO sold shares worth roughly $1.5 million and $6.7 million, respectively, under pre-arranged trading plans. Institutional investors own 85.47% of the company, compared with 0.56% held by insiders.

Shares of Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) have earned a consensus rating of "Moderate Buy" from the eighteen ratings firms that are covering the firm, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, five have issued a hold recommendation, ten have given a buy recommendation and two have issued a strong buy recommendation on the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $570.0588.

SNPS has been the subject of several recent research reports. Needham & Company LLC reissued a "buy" rating and issued a $580.00 price objective on shares of Synopsys in a report on Thursday, May 28th. Bank of America raised their price objective on shares of Synopsys from $515.00 to $600.00 and gave the stock a "buy" rating in a report on Thursday, May 28th. Berenberg Bank set a $633.00 target price on shares of Synopsys in a report on Wednesday, May 27th. Wells Fargo & Company lifted their price target on Synopsys from $505.00 to $535.00 and gave the company an "equal weight" rating in a research report on Thursday, May 28th. Finally, Citigroup increased their price objective on Synopsys from $600.00 to $610.00 and gave the stock a "buy" rating in a report on Thursday, May 28th.

Synopsys Trading Down 0.8%

Shares of SNPS stock opened at $400.82 on Thursday. The company has a quick ratio of 1.32, a current ratio of 1.43 and a debt-to-equity ratio of 0.33. The firm has a market cap of $76.75 billion, a P/E ratio of 92.78, a PEG ratio of 2.37 and a beta of 1.23. The company has a 50 day moving average of $436.11 and a 200-day moving average of $447.78. Synopsys has a 12-month low of $366.00 and a 12-month high of $632.99.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, beating the consensus estimate of $3.15 by $0.20. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The business had revenue of $2.28 billion for the quarter, compared to the consensus estimate of $2.25 billion. During the same quarter in the prior year, the business earned $3.67 earnings per share. Synopsys's revenue for the quarter 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. Sell-side analysts anticipate that Synopsys will post 10.65 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Shelagh Glaser sold 3,394 shares of the business's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the completion of the transaction, the chief financial officer owned 14,358 shares of the company's stock, valued at approximately $6,461,387.16. The trade was a 19.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the firm's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the completion of the transaction, the chief executive officer directly owned 75,020 shares of the company's stock, valued at approximately $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. 0.56% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Synopsys

Institutional investors and hedge funds have recently bought and sold shares of the stock. Sowell Financial Services LLC boosted its holdings in shares of Synopsys by 2.0% in the 4th quarter. Sowell Financial Services LLC now owns 1,056 shares of the semiconductor company's stock valued at $496,000 after acquiring an additional 21 shares during the last quarter. Natural Investments LLC raised its holdings in shares of Synopsys by 4.6% during the fourth quarter. Natural Investments LLC now owns 482 shares of the semiconductor company's stock worth $226,000 after purchasing an additional 21 shares during the last quarter. Financial Management Professionals Inc. lifted its position in Synopsys by 7.0% during the fourth quarter. Financial Management Professionals Inc. now owns 335 shares of the semiconductor company's stock valued at $157,000 after purchasing an additional 22 shares during the period. Foronjy Financial LLC lifted its position in Synopsys by 5.2% during the fourth quarter. Foronjy Financial LLC now owns 446 shares of the semiconductor company's stock valued at $210,000 after purchasing an additional 22 shares during the period. Finally, AGH Wealth Advisors LLC boosted its holdings in Synopsys by 4.4% in the first quarter. AGH Wealth Advisors LLC now owns 569 shares of the semiconductor company's stock valued at $226,000 after purchasing an additional 24 shares during the last quarter. 85.47% of the stock is owned by hedge funds and other institutional investors.

Synopsys Company Profile

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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