Synopsys (NASDAQ:SNPS) Releases Earnings Results, Beats Expectations By $0.27 EPS

Synopsys (NASDAQ:SNPS - Get Free Report) announced its earnings results on Wednesday. The semiconductor company reported $3.67 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.40 by $0.27, RTT News reports. Synopsys had a net margin of 36.12% and a return on equity of 20.48%. The business had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same period last year, the firm posted $3.00 earnings per share. The company's revenue for the quarter was up 10.3% compared to the same quarter last year. Synopsys updated its FY 2025 guidance to 15.110-15.190 EPS and its Q3 2025 guidance to 3.820-3.87 EPS.

Synopsys Trading Up 1.1%

Shares of SNPS stock traded up $5.09 during trading hours on Friday, hitting $460.08. The company's stock had a trading volume of 3,356,054 shares, compared to its average volume of 1,140,593. Synopsys has a twelve month low of $365.74 and a twelve month high of $624.80. The stock has a market cap of $71.39 billion, a price-to-earnings ratio of 31.69, a P/E/G ratio of 3.23 and a beta of 1.16. The business has a fifty day moving average of $453.46 and a 200-day moving average of $485.58.

Insider Activity at Synopsys

In other news, CEO Sassine Ghazi sold 11,366 shares of Synopsys stock in a transaction dated Monday, March 3rd. The shares were sold at an average price of $463.75, for a total transaction of $5,270,982.50. Following the completion of the sale, the chief executive officer now directly owns 70,922 shares in the company, valued at $32,890,077.50. The trade was a 13.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Geus Aart De sold 15,705 shares of the stock in a transaction dated Thursday, March 6th. The stock was sold at an average price of $444.42, for a total value of $6,979,616.10. Following the transaction, the insider now owns 116,671 shares in the company, valued at $51,850,925.82. This trade represents a 11.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.62% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Synopsys

Several hedge funds have recently modified their holdings of SNPS. Brighton Jones LLC increased 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 purchasing an additional 50 shares during the last quarter. NewEdge Advisors LLC grew its stake in shares of Synopsys by 15.1% during the 1st quarter. NewEdge Advisors LLC now owns 3,010 shares of the semiconductor company's stock valued at $1,291,000 after buying an additional 395 shares during the period. Finally, Integrated Wealth Concepts LLC grew its stake in shares of Synopsys by 11.6% during the 1st quarter. Integrated Wealth Concepts LLC now owns 760 shares of the semiconductor company's stock valued at $326,000 after buying an additional 79 shares during the period. 85.47% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

SNPS has been the topic of a number of recent research reports. Piper Sandler restated an "overweight" rating and issued a $615.00 price objective (down from $653.00) on shares of Synopsys in a research note on Thursday. Morgan Stanley lowered their target price on Synopsys from $625.00 to $590.00 and set an "overweight" rating on the stock in a research note on Monday, February 24th. KeyCorp set a $575.00 price target on Synopsys and gave the stock an "overweight" rating in a research note on Tuesday, May 20th. Mizuho lowered their price objective on shares of Synopsys from $650.00 to $600.00 and set an "outperform" rating on the stock in a research report on Tuesday, April 15th. Finally, Wells Fargo & Company dropped their price target on shares of Synopsys from $540.00 to $520.00 and set an "equal weight" rating on the stock in a research note on Thursday, February 27th. One research analyst has rated the stock with a hold rating and twelve have issued a buy rating to the company's stock. According to data from MarketBeat.com, Synopsys currently has an average rating of "Moderate Buy" and an average price target of $609.64.

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.