Synopsys, Inc. (NASDAQ:SNPS) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Brokerages remain cautious on Synopsys, with a consensus rating of “Hold” across 17 analysts. The average 12-month price target is about $563.81, with a mix of buy, hold, and one sell rating.
• Recent analyst updates were mostly positive on valuation targets, as Wells Fargo and Morgan Stanley raised price targets while keeping “equal weight” ratings. Needham, Berenberg, and Goldman Sachs also maintained bullish price objectives.
• Insider selling and mixed fundamentals weighed on sentiment, including share sales by CEO Sassine Ghazi and CFO Shelagh Glaser under 10b5-1 plans. Synopsys also reported a strong quarter with EPS and revenue beating estimates, while the stock traded down about 1.3% to $448.38.

Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) has been assigned a consensus recommendation of "Hold" from the seventeen research firms that are covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, seven have given a hold recommendation and nine have given a buy recommendation to the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $563.8125.

Several research firms have recently weighed in on SNPS. Wells Fargo & Company upped their price target on shares of Synopsys from $505.00 to $535.00 and gave the company an "equal weight" rating in a report on Thursday, May 28th. Morgan Stanley boosted their price objective on shares of Synopsys from $480.00 to $525.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 28th. Needham & Company LLC reissued a "buy" rating and issued a $580.00 price objective on shares of Synopsys in a research report on Thursday, May 28th. Berenberg Bank set a $633.00 price objective on shares of Synopsys in a research report on Wednesday, May 27th. Finally, The Goldman Sachs Group set a $600.00 price objective on shares of Synopsys and gave the stock a "buy" rating in a research report on Wednesday, February 25th.

Key Stories Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys announced a collaboration with Murata Manufacturing that expands access to Murata simulation models through Synopsys/Ansys electromagnetic and thermal analysis tools, which could support broader product adoption and reinforce Synopsys’ software ecosystem. Murata Collaborates with Synopsys to Provide Simulation Models Through Ansys Electromagnetic and Thermal Analysis Tools
• Neutral Sentiment: A DCF-based valuation article said SNPS appears “fairly valued” at about $394, suggesting the stock may not be dramatically undervalued despite recent weakness. SNPS Fairly Valued by DCF at $394
• Negative Sentiment: CEO Sassine Ghazi sold 14,603 shares for about $6.7 million, and CFO Shelagh Glaser also sold 3,394 shares for about $1.5 million. Both transactions were made under pre-arranged 10b5-1 plans, which makes them less alarming, but insider selling can still pressure sentiment. Top Synopsys Executive Makes Major Move With Insider Stock Sale

Insiders Place Their Bets

In other news, CFO Shelagh Glaser sold 3,394 shares of the business's stock in a transaction on Friday, June 12th. The shares were sold at an average price of $450.02, for a total value of $1,527,367.88. Following the sale, the chief financial officer owned 14,358 shares of the company's stock, valued at $6,461,387.16. The trade was 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 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 business's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the completion of the sale, the chief executive officer directly owned 75,020 shares in the company, valued at approximately $34,431,179.20. This represents a 16.29% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Insiders own 0.56% of the company's stock.

Institutional Trading of Synopsys

Institutional investors have recently made changes to their positions in the business. Brighton Jones LLC raised its position in Synopsys by 5.7% during the fourth quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company's stock worth $447,000 after acquiring an additional 50 shares in the last quarter. Integrated Wealth Concepts LLC raised its position in Synopsys by 11.6% during the first quarter. Integrated Wealth Concepts LLC now owns 760 shares of the semiconductor company's stock worth $326,000 after acquiring an additional 79 shares in the last quarter. NewEdge Advisors LLC raised its position in Synopsys by 15.1% during the first quarter. NewEdge Advisors LLC now owns 3,010 shares of the semiconductor company's stock worth $1,291,000 after acquiring an additional 395 shares in the last quarter. WINTON GROUP Ltd raised its position in Synopsys by 9.2% during the second quarter. WINTON GROUP Ltd now owns 758 shares of the semiconductor company's stock worth $389,000 after acquiring an additional 64 shares in the last quarter. Finally, Treasurer of the State of North Carolina raised its position in Synopsys by 2.1% during the second quarter. Treasurer of the State of North Carolina now owns 72,095 shares of the semiconductor company's stock worth $36,962,000 after acquiring an additional 1,505 shares in the last quarter. Institutional investors own 85.47% of the company's stock.

Synopsys Stock Down 1.3%

Synopsys stock opened at $448.38 on Wednesday. The stock has a market capitalization of $85.86 billion, a PE ratio of 103.79, a price-to-earnings-growth ratio of 2.67 and a beta of 1.22. Synopsys has a twelve month low of $376.18 and a twelve month high of $651.73. 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 company has a 50 day moving average of $475.78 and a 200-day moving average of $461.46.

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

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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