Short Interest in Synopsys, Inc. (NASDAQ:SNPS) Decreases By 39.1%

Key Points

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Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) was the target of a large drop in short interest in the month of July. As of July 31st, there was short interest totaling 3,980,000 shares, adropof39.1% from the July 15th total of 6,540,000 shares. Based on an average trading volume of 1,670,000 shares, the short-interest ratio is presently 2.4 days. Approximately2.6% of the company's shares are short sold. Approximately2.6% of the company's shares are short sold. Based on an average trading volume of 1,670,000 shares, the short-interest ratio is presently 2.4 days.

Insider Activity

In other news, CFO Shelagh Glaser sold 7,310 shares of the firm's stock in a transaction on Friday, June 6th. The shares were sold at an average price of $485.72, for a total value of $3,550,613.20. Following the transaction, the chief financial officer 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 sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Sassine Ghazi sold 11,366 shares of the firm's stock in a transaction on Monday, June 2nd. The shares were sold at an average price of $457.93, for a total transaction of $5,204,832.38. Following the completion of the transaction, the chief executive officer directly owned 71,589 shares in the company, valued at approximately $32,782,750.77. This represents a 13.70% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 27,686 shares of company stock valued at $13,001,048. Company insiders own 0.62% of the company's stock.

Institutional Investors Weigh In On Synopsys

A number of institutional investors have recently modified their holdings of the business. Vanguard Group Inc. raised its stake in Synopsys by 1.6% during the second quarter. Vanguard Group Inc. now owns 15,060,784 shares of the semiconductor company's stock worth $7,721,363,000 after acquiring an additional 231,014 shares during the period. State Street Corp raised its stake in Synopsys by 1.2% during the second quarter. State Street Corp now owns 7,266,446 shares of the semiconductor company's stock worth $3,725,362,000 after acquiring an additional 85,662 shares during the period. Price T Rowe Associates Inc. MD raised its stake in Synopsys by 21.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 5,902,696 shares of the semiconductor company's stock worth $2,864,933,000 after acquiring an additional 1,045,326 shares during the period. Geode Capital Management LLC raised its stake in Synopsys by 1.5% during the second quarter. Geode Capital Management LLC now owns 3,545,892 shares of the semiconductor company's stock worth $1,810,214,000 after acquiring an additional 51,043 shares during the period. Finally, Ameriprise Financial Inc. raised its stake in 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 period. Institutional investors own 85.47% of the company's stock.

Analysts Set New Price Targets

SNPS has been the topic of several analyst reports. KeyCorp lifted their price target on shares of Synopsys from $540.00 to $610.00 and gave the stock an "overweight" rating in a research note on Thursday, July 10th. Needham & Company LLC reaffirmed a "buy" rating and set a $660.00 price target (up previously from $650.00) on shares of Synopsys in a research note on Tuesday, July 15th. Rosenblatt Securities lifted their price target on shares of Synopsys from $625.00 to $650.00 and gave the stock a "buy" rating in a research note on Friday, July 25th. Morgan Stanley reaffirmed an "overweight" rating and set a $715.00 price target (up previously from $540.00) on shares of Synopsys in a research note on Monday, August 11th. Finally, Stifel Nicolaus set a $550.00 price target on shares of Synopsys in a research note on Monday, April 28th. Twelve investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, Synopsys presently has an average rating of "Moderate Buy" and an average target price of $626.79.

Synopsys Stock Up 1.4%

Shares of SNPS traded up $8.35 during midday trading on Friday, hitting $606.52. The company had a trading volume of 863,153 shares, compared to its average volume of 1,313,433. The company's 50 day moving average price is $567.73 and its 200 day moving average price is $500.38. The stock has a market cap of $94.11 billion, a price-to-earnings ratio of 43.79, a PEG ratio of 3.93 and a beta of 1.15. Synopsys has a 52 week low of $365.74 and a 52 week 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 earnings results on Wednesday, May 28th. The semiconductor company reported $3.67 earnings per share for the quarter, topping the consensus estimate of $3.40 by $0.27. The company had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.60 billion. Synopsys had a net margin of 34.77% and a return on equity of 17.09%. The company's revenue was up 10.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $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. On average, equities research analysts predict that Synopsys will post 10.64 EPS for the current year.

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.