Synopsys (NASDAQ:SNPS) Sees Strong Trading Volume After Better-Than-Expected Earnings

Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) shares saw unusually-high trading volume on Thursday after the company announced better than expected quarterly earnings. Approximately 3,016,880 shares were traded during mid-day trading, an increase of 167% from the previous session's volume of 1,129,598 shares.The stock last traded at $451.88 and had previously closed at $462.43.

The semiconductor company reported $3.67 earnings per share for the quarter, beating the consensus estimate of $3.40 by $0.27. Synopsys had a return on equity of 20.48% and a net margin of 36.12%. The business had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter in the previous year, the business earned $3.00 EPS. The company's quarterly revenue was up 10.3% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on SNPS. Morgan Stanley decreased their price objective on Synopsys from $625.00 to $590.00 and set an "overweight" rating for the company in a research note on Monday, February 24th. Piper Sandler reissued an "overweight" rating and set a $615.00 price objective (down from $653.00) on shares of Synopsys in a research report on Thursday. Stifel Nicolaus set a $550.00 price target on Synopsys in a report on Monday, April 28th. Wells Fargo & Company reduced their price target on Synopsys from $540.00 to $520.00 and set an "equal weight" rating for the company in a report on Thursday, February 27th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $650.00 price objective on shares of Synopsys in a report on Thursday. One analyst has rated the stock with a hold rating and twelve have given a buy rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $609.64.

Insider Transactions at Synopsys

In other Synopsys news, insider Geus Aart De sold 15,705 shares of the company's 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 sale, the insider now owns 116,671 shares in the company, valued at approximately $51,850,925.82. The trade was a 11.86% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Sassine Ghazi sold 11,366 shares of the stock in a transaction that occurred on Monday, March 3rd. The stock was sold at an average price of $463.75, for a total value of $5,270,982.50. Following the transaction, the chief executive officer now 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 disclosure for this sale can be found here. Corporate insiders own 0.62% of the company's stock.

Institutional Trading of Synopsys

Large investors have recently bought and sold shares of the company. Ameriflex Group Inc. bought a new position in Synopsys during the fourth quarter valued at approximately $29,000. Cornerstone Planning Group LLC raised its stake in Synopsys by 275.0% during the 1st quarter. Cornerstone Planning Group LLC now owns 60 shares of the semiconductor company's stock valued at $25,000 after buying an additional 44 shares during the last quarter. Saudi Central Bank bought a new position in Synopsys in the first quarter worth approximately $26,000. Clal Insurance Enterprises Holdings Ltd increased its stake in shares of Synopsys by 441.7% in the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 65 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 53 shares in the last quarter. Finally, Whipplewood Advisors LLC bought a new position in shares of Synopsys during the fourth quarter worth $33,000. 85.47% of the stock is owned by hedge funds and other institutional investors.

Synopsys Trading Up 1.1%

The firm's 50-day moving average price is $453.46 and its 200-day moving average price is $486.08. The stock has a market capitalization of $71.14 billion, a PE ratio of 31.69, a PEG ratio of 3.23 and a beta of 1.16.

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.