Synopsys (NASDAQ:SNPS) Reaches New 12-Month High - Still a Buy?

Synopsys, Inc. (NASDAQ:SNPS - Get Free Report)'s stock price reached a new 52-week high during trading on Friday . The stock traded as high as $600.90 and last traded at $585.24, with a volume of 813662 shares. The stock had previously closed at $589.01.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on SNPS. Bank of America increased their price objective on shares of Synopsys from $575.00 to $625.00 and gave the company a "buy" rating in a research report on Wednesday. Mizuho reduced their price objective on shares of Synopsys from $650.00 to $600.00 and set an "outperform" rating for the company in a research note on Tuesday, April 15th. Rosenblatt Securities reduced their price objective on shares of Synopsys from $660.00 to $625.00 and set a "buy" rating for the company in a research note on Thursday, May 29th. The Goldman Sachs Group assumed coverage on shares of Synopsys in a research note on Thursday, July 10th. They set a "buy" rating and a $620.00 target price for the company. Finally, Piper Sandler reaffirmed an "overweight" rating and set a $615.00 target price (down from $653.00) on shares of Synopsys in a research note on Thursday, May 29th. One analyst has rated the stock with a hold rating and thirteen have assigned a buy rating to the company's stock. According to MarketBeat.com, Synopsys has a consensus rating of "Moderate Buy" and an average price target of $617.67.

Synopsys Trading Down 0.7%

The company's 50 day moving average price is $508.54 and its 200 day moving average price is $482.95. The company has a debt-to-equity ratio of 1.01, a current ratio of 7.02 and a quick ratio of 6.85. The firm has a market cap of $90.73 billion, a PE ratio of 42.22, a price-to-earnings-growth ratio of 3.87 and a beta of 1.12.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted its quarterly earnings data on Wednesday, May 28th. The semiconductor company reported $3.67 EPS for the quarter, beating the consensus estimate of $3.40 by $0.27. The business had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.60 billion. Synopsys had a net margin of 34.77% and a return on equity of 17.09%. The business's revenue for the quarter was up 10.3% compared to the same quarter last year. During the same quarter last year, the firm posted $3.00 earnings per share. As a group, analysts forecast that Synopsys, Inc. will post 10.64 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CRO Richard S. Mahoney sold 9,010 shares of the firm's stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $471.21, for a total transaction of $4,245,602.10. Following the transaction, the executive directly owned 1,485 shares in the company, valued at approximately $699,746.85. This trade represents a 85.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Shelagh Glaser sold 7,310 shares of the business's stock in a transaction on Friday, June 6th. The shares were sold at an average price of $485.72, for a total transaction of $3,550,613.20. Following the completion of the transaction, the chief financial officer directly owned 15,291 shares in the company, valued at $7,427,144.52. This represents a 32.34% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 27,686 shares of company stock valued at $13,001,048. 0.62% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Synopsys

A number of institutional investors and hedge funds have recently made changes to their positions in SNPS. Naples Global Advisors LLC purchased a new position in shares of Synopsys during the 2nd quarter worth about $213,000. Pure Financial Advisors LLC purchased a new position in shares of Synopsys during the 2nd quarter valued at approximately $201,000. Robeco Institutional Asset Management B.V. boosted its stake in shares of Synopsys by 302.3% during the 2nd quarter. Robeco Institutional Asset Management B.V. now owns 179,624 shares of the semiconductor company's stock valued at $92,090,000 after buying an additional 134,979 shares during the last quarter. BSW Wealth Partners lifted its stake in Synopsys by 8.6% during the second quarter. BSW Wealth Partners now owns 933 shares of the semiconductor company's stock worth $478,000 after purchasing an additional 74 shares during the last quarter. Finally, Woodward Diversified Capital LLC bought a new position in Synopsys during the second quarter worth $221,000. 85.47% of the stock is owned by institutional investors and hedge funds.

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.