BNP Paribas Begins Coverage on Synopsys (NASDAQ:SNPS)

Key Points

• BNP Paribas has initiated coverage on Synopsys (NASDAQ:SNPS) with a "strong sell" rating, indicating a bearish outlook for the stock.
• Synopsys has a current average analyst rating of "Hold" with a consensus price target of $575.31, as several firms have adjusted their ratings and price targets downward.
• Insider trading activity includes significant stock sales by executives, with CFO Shelagh Glaser and CAO Sudhindra Kankanwadi reducing their positions by over 19% and 32% respectively.

BNP Paribas started coverage on shares of Synopsys (NASDAQ:SNPS - Get Free Report) in a research note issued to investors on Thursday, MarketBeat reports. The brokerage set an "underperform" rating and a $425.00 price target on the semiconductor company's stock. BNP Paribas' price target indicates a potential downside of 9.41% from the company's previous close.

Other equities research analysts also recently issued reports about the company. Bank of America reiterated an "underperform" rating and issued a $525.00 price objective (down from $625.00) on shares of Synopsys in a report on Wednesday, September 10th. Baird R W cut Synopsys from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 10th. Wells Fargo & Company lowered their price target on Synopsys from $630.00 to $550.00 and set an "equal weight" rating on the stock in a report on Wednesday, September 10th. Weiss Ratings reissued a "hold (c)" rating on shares of Synopsys in a report on Saturday, September 27th. Finally, Morgan Stanley lowered their price target on Synopsys from $715.00 to $510.00 and set an "overweight" rating on the stock in a report on Thursday, September 11th. Eleven analysts have rated the stock with a Buy rating, five have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $575.31.

Synopsys Price Performance

SNPS opened at $469.17 on Thursday. The stock has a fifty day simple moving average of $559.15 and a two-hundred day simple moving average of $510.22. The company has a current ratio of 1.62, a quick ratio of 1.51 and a debt-to-equity ratio of 0.52. The company has a market cap of $87.15 billion, a price-to-earnings ratio of 36.83, a price-to-earnings-growth ratio of 5.17 and a beta of 1.10. Synopsys has a 12-month low of $365.74 and a 12-month high of $651.73.

Insider Transactions at Synopsys

In related news, Director Robert G. Painter acquired 350 shares of the firm's stock in a transaction that occurred on Thursday, September 11th. The stock was purchased at an average cost of $425.44 per share, for a total transaction of $148,904.00. Following the purchase, the director directly owned 2,291 shares of the company's stock, valued at $974,683.04. This trade represents a 18.03% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Sassine Ghazi sold 11,366 shares of the company's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $589.01, for a total value of $6,694,687.66. Following the sale, the chief executive officer owned 71,615 shares of the company's stock, valued at $42,181,951.15. This trade represents a 13.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 30,894 shares of company stock worth $16,760,783 over the last quarter. 0.62% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Synopsys

A number of hedge funds have recently made changes to their positions in SNPS. Central Pacific Bank Trust Division raised its stake in Synopsys by 71.0% in the third quarter. Central Pacific Bank Trust Division now owns 5,290 shares of the semiconductor company's stock valued at $2,610,000 after buying an additional 2,196 shares during the last quarter. GAMMA Investing LLC raised its stake in Synopsys by 16.0% in the third quarter. GAMMA Investing LLC now owns 3,820 shares of the semiconductor company's stock valued at $1,885,000 after buying an additional 527 shares during the last quarter. Jacobs & Co. CA raised its stake in Synopsys by 1.6% in the third quarter. Jacobs & Co. CA now owns 24,567 shares of the semiconductor company's stock valued at $12,121,000 after buying an additional 388 shares during the last quarter. Praxis Investment Management Inc. raised its stake in Synopsys by 7.3% in the third quarter. Praxis Investment Management Inc. now owns 7,493 shares of the semiconductor company's stock valued at $3,697,000 after buying an additional 513 shares during the last quarter. Finally, Caldwell Trust Co purchased a new stake in Synopsys in the second quarter valued at about $343,000. 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.