Synopsys (NASDAQ:SNPS) Shares Gap Up - Still a Buy?

Key Points

• Synopsys' stock price gapped up before the market opened on Thursday from a previous close of $387.78 to an opening price of $415.97, with last trades at $413.40.
• Analyst ratings were mixed, with Bank of America downgrading its target price to $525, while Needham & Company LLC maintained a "buy" rating with a reduced target of $550, reflecting a general downward adjustment in expectations.
• Insider trading activity included significant sales by CFO Shelagh Glaser and CRO Richard S. Mahoney, raising concerns as insiders collectively sold 24,031 shares worth approximately $13.16 million over the last quarter.

Synopsys, Inc. (NASDAQ:SNPS - Get Free Report)'s share price gapped up before the market opened on Thursday . The stock had previously closed at $387.78, but opened at $415.97. Synopsys shares last traded at $413.40, with a volume of 2,894,661 shares changing hands.

Analyst Ratings Changes

Several brokerages have recently weighed in on SNPS. Bank of America restated an "underperform" rating and set a $525.00 target price (down from $625.00) on shares of Synopsys in a research note on Wednesday. Needham & Company LLC lowered their target price on Synopsys from $660.00 to $550.00 and set a "buy" rating for the company in a research note on Wednesday. Wells Fargo & Company lowered their target price on Synopsys from $630.00 to $550.00 and set an "equal weight" rating for the company in a research note on Wednesday. Piper Sandler lowered their target price on Synopsys from $660.00 to $630.00 and set an "overweight" rating for the company in a research note on Wednesday. Finally, Rosenblatt Securities reiterated a "neutral" rating and issued a $605.00 price target (down from $650.00) on shares of Synopsys in a research note on Wednesday. Eleven equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, Synopsys presently has an average rating of "Moderate Buy" and an average target price of $585.33.

Synopsys Stock Up 10.9%

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 stock's fifty day simple moving average is $594.99 and its 200-day simple moving average is $506.99. The stock has a market cap of $66.74 billion, a P/E ratio of 33.77, a PEG ratio of 3.97 and a beta of 1.14.

Insiders Place Their Bets

In related news, CFO Shelagh Glaser sold 3,655 shares of the business's stock in a transaction that occurred 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 sale, the chief financial officer owned 15,317 shares of the company's stock, valued at $9,339,847.09. The trade was a 19.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CRO Richard S. Mahoney sold 9,010 shares of Synopsys stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $471.21, for a total transaction of $4,245,602.10. Following the transaction, the executive owned 1,485 shares in the company, valued at approximately $699,746.85. The trade was a 85.85% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 24,031 shares of company stock valued at $13,168,999 over the last quarter. Insiders own 0.62% of the company's stock.

Hedge Funds Weigh In On Synopsys

Several institutional investors and hedge funds have recently modified their holdings of SNPS. Lionshead Wealth Management LLC lifted its holdings in Synopsys by 1.9% during the second quarter. Lionshead Wealth Management LLC now owns 914 shares of the semiconductor company's stock valued at $469,000 after purchasing an additional 17 shares in the last quarter. YANKCOM Partnership lifted its holdings in Synopsys by 3.3% during the second quarter. YANKCOM Partnership now owns 537 shares of the semiconductor company's stock valued at $275,000 after purchasing an additional 17 shares in the last quarter. Manchester Capital Management LLC lifted its holdings in Synopsys by 5.3% during the second quarter. Manchester Capital Management LLC now owns 340 shares of the semiconductor company's stock valued at $174,000 after purchasing an additional 17 shares in the last quarter. Hemington Wealth Management lifted its holdings in Synopsys by 10.1% during the second quarter. Hemington Wealth Management now owns 197 shares of the semiconductor company's stock valued at $100,000 after purchasing an additional 18 shares in the last quarter. Finally, Concord Asset Management LLC VA lifted its holdings in Synopsys by 0.8% during the second quarter. Concord Asset Management LLC VA now owns 2,379 shares of the semiconductor company's stock valued at $1,220,000 after purchasing an additional 18 shares in the last quarter. 85.47% of the stock is currently owned by hedge funds and other institutional investors.

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.

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