Synopsys (NASDAQ:SNPS) Shares Gap Up - Should You Buy?

Key Points

• Synopsys shares experienced a significant price surge, opening at $460.00 after previously closing at $425.40, with the last trade recorded at $465.48 and over 2.4 million shares exchanged.
• Multiple analysts have lowered their price targets for Synopsys, with Bank of America reducing its target from $625.00 to $525.00, while JPMorgan and Morgan Stanley have also revised their targets down to $600.00 and $510.00, respectively.
• Insider trading activity includes CFO Shelagh Glaser selling 3,655 shares at an average price of $609.77, indicating a 19.27% reduction in her ownership stake.

Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) shares gapped up before the market opened on Thursday . The stock had previously closed at $425.40, but opened at $460.00. Synopsys shares last traded at $465.48, with a volume of 2,458,545 shares trading hands.

Analysts Set New Price Targets

A number of analysts have recently issued reports on SNPS shares. Bank of America restated an "underperform" rating and set a $525.00 price objective (down from $625.00) on shares of Synopsys in a research report on Wednesday, September 10th. JPMorgan Chase & Co. cut their price target on Synopsys from $685.00 to $600.00 and set an "overweight" rating on the stock in a research note on Wednesday, September 10th. Morgan Stanley cut their price target on Synopsys from $715.00 to $510.00 and set an "overweight" rating on the stock in a research note on Thursday, September 11th. Rosenblatt Securities reissued a "neutral" rating and issued a $605.00 target price (down previously from $650.00) on shares of Synopsys in a research note on Wednesday, September 10th. Finally, Zacks Research lowered Synopsys from a "hold" rating to a "strong sell" rating in a research note on Friday, September 12th. Eleven analysts have rated the stock with a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $585.33.

Synopsys Price Performance

The stock has a market capitalization of $87.10 billion, a price-to-earnings ratio of 36.89, a PEG ratio of 4.82 and a beta of 1.14. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.51 and a current ratio of 1.62. The company has a fifty day simple moving average of $583.02 and a two-hundred day simple moving average of $505.77.

Insider Transactions at Synopsys

In other news, CFO Shelagh Glaser sold 3,655 shares of the business's stock in a transaction on Friday, September 5th. The stock was 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 owned 15,317 shares of the company's stock, valued at approximately $9,339,847.09. The trade was a 19.27% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Robert G. Painter purchased 350 shares of the stock in a transaction dated Thursday, September 11th. The shares were acquired at an average cost of $425.44 per share, with a total value of $148,904.00. Following the acquisition, the director directly owned 2,291 shares in the company, valued at $974,683.04. This represents a 18.03% increase in their position. The disclosure for this purchase can be found here. 0.62% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Synopsys

A number of hedge funds and other institutional investors have recently bought and sold shares of SNPS. Brighton Jones LLC grew its position in Synopsys by 5.7% during the 4th quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company's stock worth $447,000 after acquiring an additional 50 shares during the last quarter. Woodline Partners LP bought a new stake in shares of Synopsys in the 4th quarter valued at about $8,453,000. Williams Jones Wealth Management LLC. grew its position in shares of Synopsys by 0.5% in the 4th quarter. Williams Jones Wealth Management LLC. now owns 4,650 shares of the semiconductor company's stock valued at $2,257,000 after buying an additional 22 shares during the last quarter. Waverly Advisors LLC grew its position in shares of Synopsys by 447.6% in the 4th quarter. Waverly Advisors LLC now owns 4,310 shares of the semiconductor company's stock valued at $2,092,000 after buying an additional 3,523 shares during the last quarter. Finally, White Knight Strategic Wealth Advisors LLC bought a new stake in shares of Synopsys in the 4th quarter valued at about $485,000. Institutional investors own 85.47% of the company's stock.

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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