Synopsys, Inc. (NASDAQ:SNPS) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Synopsys, Inc. has received a consensus rating of "Hold" from analysts, with four sell ratings, five hold ratings, and eleven buy ratings among twenty analysts covering the stock.
• The company's latest quarterly earnings report showed $2.30 EPS, missing analysts' estimates of $3.75, while revenue reached $1.74 billion against expectations of $1.77 billion.
• Following recent insider transactions, including a significant sale by the CFO, insiders have sold a total of 30,894 shares valued at approximately $16.76 million in the last 90 days.

Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) has received a consensus rating of "Hold" from the twenty analysts that are currently covering the stock, Marketbeat reports. Four research analysts have rated the stock with a sell recommendation, five have issued a hold recommendation and eleven have assigned a buy recommendation to the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $575.3125.

A number of brokerages recently issued reports on SNPS. Zacks Research downgraded Synopsys from a "hold" rating to a "strong sell" rating in a report on Friday, September 12th. Morgan Stanley cut their price objective on Synopsys from $715.00 to $510.00 and set an "overweight" rating on the stock in a research report on Thursday, September 11th. Robert W. Baird reaffirmed a "neutral" rating and set a $535.00 price objective (down from $670.00) on shares of Synopsys in a research report on Wednesday, September 10th. KeyCorp cut their price objective on Synopsys from $660.00 to $590.00 and set an "overweight" rating on the stock in a research report on Wednesday, September 10th. Finally, Rosenblatt Securities reaffirmed a "neutral" rating and set a $605.00 price objective (down from $650.00) on shares of Synopsys in a research report on Wednesday, September 10th.

Synopsys Stock Down 1.0%

Shares of NASDAQ:SNPS opened at $484.41 on Friday. Synopsys has a 1 year low of $365.74 and a 1 year high of $651.73. The company has a market cap of $89.98 billion, a PE ratio of 38.02, a P/E/G ratio of 5.39 and a beta of 1.10. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.62 and a quick ratio of 1.51. The stock's 50-day moving average is $547.60 and its 200 day moving average is $510.24.

Synopsys (NASDAQ:SNPS - Get Free Report) last announced its quarterly earnings results on Tuesday, September 9th. The semiconductor company reported $2.30 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.75 by ($1.45). Synopsys had a net margin of 31.04% and a return on equity of 10.82%. The business had revenue of $1.74 billion for the quarter, compared to analysts' expectations of $1.77 billion. During the same quarter in the prior year, the firm earned $3.43 EPS. The firm's revenue for the quarter was up 14.0% on a year-over-year basis. Synopsys has set its FY 2025 guidance at 12.760-12.800 EPS. Q4 2025 guidance at 2.760-2.80 EPS. Sell-side analysts anticipate that Synopsys will post 10.64 EPS for the current year.

Insider Transactions at Synopsys

In other Synopsys news, CFO Shelagh Glaser sold 3,655 shares of Synopsys stock in a transaction that occurred 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 of the company's stock, valued at approximately $9,339,847.09. The trade was a 19.27% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Robert G. Painter acquired 350 shares of the business's stock in a transaction on Thursday, September 11th. The shares were purchased at an average cost of $425.44 per share, for a total transaction of $148,904.00. Following the completion of the transaction, the director owned 2,291 shares in the company, valued at approximately $974,683.04. This represents a 18.03% increase in their position. The disclosure for this purchase can be found here. In the last 90 days, insiders sold 30,894 shares of company stock valued at $16,760,783. Insiders own 0.62% of the company's stock.

Institutional Trading of Synopsys

A number of hedge funds have recently made changes to their positions in the stock. Lionshead Wealth Management LLC boosted its position in shares of Synopsys by 1.9% in the 2nd quarter. Lionshead Wealth Management LLC now owns 914 shares of the semiconductor company's stock worth $469,000 after purchasing an additional 17 shares in the last quarter. YANKCOM Partnership lifted its position in Synopsys by 3.3% in the 2nd quarter. YANKCOM Partnership now owns 537 shares of the semiconductor company's stock valued at $275,000 after acquiring an additional 17 shares in the last quarter. Manchester Capital Management LLC lifted its position in Synopsys by 5.3% in the 2nd quarter. Manchester Capital Management LLC now owns 340 shares of the semiconductor company's stock valued at $174,000 after acquiring an additional 17 shares in the last quarter. Hemington Wealth Management lifted its position in Synopsys by 10.1% in the 2nd quarter. Hemington Wealth Management now owns 197 shares of the semiconductor company's stock valued at $100,000 after acquiring an additional 18 shares in the last quarter. Finally, Concord Asset Management LLC VA lifted its position in Synopsys by 0.8% in the 2nd quarter. Concord Asset Management LLC VA now owns 2,379 shares of the semiconductor company's stock valued at $1,220,000 after acquiring an additional 18 shares in the last quarter. 85.47% of the stock is owned by institutional investors.

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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