Synopsys (NASDAQ:SNPS) Announces Earnings Results

Key Points

• Synopsys reported earnings of $2.30 per share for the quarter, significantly missing analysts' expectations of $3.84, resulting in a decline in stock price.
• The company's market capitalization is $93.77 billion, with a P/E ratio of 43.64 and significant institutional ownership at 85.47%.
• Several brokerages have raised their target prices on Synopsys, with analysts maintaining a largely positive outlook on the stock, giving it an average rating of "Moderate Buy."

Synopsys (NASDAQ:SNPS - Get Free Report) posted its quarterly earnings results on Tuesday. The semiconductor company reported $2.30 earnings per share for the quarter, missing analysts' consensus estimates of $3.84 by ($1.54), Zacks reports. Synopsys had a return on equity of 17.09% and a net margin of 34.77%.

Synopsys Stock Performance

Shares of NASDAQ SNPS traded down $4.71 during midday trading on Tuesday, hitting $604.37. The company's stock had a trading volume of 1,920,907 shares, compared to its average volume of 1,406,870. Synopsys has a 1-year low of $365.74 and a 1-year high of $651.73. The firm's fifty day moving average price is $596.04 and its 200-day moving average price is $507.14. The company has a debt-to-equity ratio of 1.01, a quick ratio of 6.85 and a current ratio of 7.02. The firm has a market cap of $93.77 billion, a P/E ratio of 43.64, a P/E/G ratio of 3.93 and a beta of 1.14.

Insider Activity

In other Synopsys news, CFO Shelagh Glaser sold 3,655 shares of the business's stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $609.77, for a total transaction of $2,228,709.35. Following the completion of the transaction, the chief financial officer directly owned 15,317 shares of the company's stock, valued at $9,339,847.09. The trade was a 19.27% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Sassine Ghazi sold 11,366 shares of the business's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $589.01, for a total transaction of $6,694,687.66. Following the transaction, the chief executive officer directly owned 71,615 shares of the company's stock, valued at $42,181,951.15. The trade was a 13.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 24,031 shares of company stock valued at $13,168,999. Company insiders own 0.62% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Bank of America Corp DE raised its position in shares of Synopsys by 31.6% during the 2nd quarter. Bank of America Corp DE now owns 898,612 shares of the semiconductor company's stock worth $460,701,000 after buying an additional 215,721 shares in the last quarter. Raymond James Financial Inc. raised its position in shares of Synopsys by 9.1% during the 2nd quarter. Raymond James Financial Inc. now owns 421,649 shares of the semiconductor company's stock worth $216,171,000 after buying an additional 35,261 shares in the last quarter. California State Teachers Retirement System raised its position in shares of Synopsys by 0.3% during the 2nd quarter. California State Teachers Retirement System now owns 242,296 shares of the semiconductor company's stock worth $124,220,000 after buying an additional 670 shares in the last quarter. TOMS Capital Investment Management LP bought a new stake in shares of Synopsys in the 2nd quarter worth approximately $110,739,000. Finally, CANADA LIFE ASSURANCE Co raised its holdings in shares of Synopsys by 5.0% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 179,925 shares of the semiconductor company's stock worth $92,348,000 after purchasing an additional 8,561 shares in the last quarter. 85.47% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of brokerages have recently commented on SNPS. Rosenblatt Securities raised their target price on shares of Synopsys from $625.00 to $650.00 and gave the company a "buy" rating in a research note on Friday, July 25th. Wells Fargo & Company reissued a "positive" rating on shares of Synopsys in a research note on Wednesday, August 27th. KeyCorp raised their target price on shares of Synopsys from $610.00 to $660.00 and gave the company an "overweight" rating in a research note on Wednesday, September 3rd. Piper Sandler raised their target price on shares of Synopsys from $615.00 to $660.00 and gave the company an "overweight" rating in a research note on Monday, July 21st. Finally, 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. Twelve equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $638.21.

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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