Synopsys (NASDAQ:SNPS) Shares Down 8.2% - What's Next?

Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) fell 8.2% on Wednesday . The company traded as low as $497.41 and last traded at $469.83. 1,474,869 shares changed hands during mid-day trading, an increase of 33% from the average session volume of 1,110,326 shares. The stock had previously closed at $511.79.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on SNPS. Rosenblatt Securities dropped their price objective on Synopsys from $660.00 to $625.00 and set a "buy" rating for the company in a research note on Thursday. Piper Sandler reaffirmed an "overweight" rating and issued a $615.00 price objective (down from $653.00) on shares of Synopsys in a research note on Thursday. Mizuho dropped their price objective on Synopsys from $650.00 to $600.00 and set an "outperform" rating for the company in a research note on Tuesday, April 15th. Morgan Stanley lowered their target price on Synopsys from $625.00 to $590.00 and set an "overweight" rating for the company in a research note on Monday, February 24th. Finally, Bank of America lowered their target price on Synopsys from $630.00 to $560.00 and set a "buy" rating for the company in a research note on Wednesday, April 16th. One investment analyst has rated the stock with a hold rating and twelve have issued a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $609.64.

Synopsys Price Performance

The firm has a 50-day simple moving average of $453.46 and a 200 day simple moving average of $486.08. The company has a market capitalization of $71.14 billion, a PE ratio of 31.69, a price-to-earnings-growth ratio of 3.23 and a beta of 1.16.

Synopsys (NASDAQ:SNPS - Get Free Report) last released 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. Synopsys had a return on equity of 20.48% and a net margin of 36.12%. The company had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same period last year, the company posted $3.00 earnings per share. The firm's revenue was up 10.3% compared to the same quarter last year. Equities research analysts expect that Synopsys, Inc. will post 10.64 EPS for the current fiscal year.

Insider Buying and Selling at Synopsys

In other Synopsys news, insider Geus Aart De sold 15,705 shares of the firm'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 transaction, the insider now directly owns 116,671 shares of the company's stock, valued at $51,850,925.82. This trade represents a 11.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Sassine Ghazi sold 11,366 shares of the firm's stock in a transaction dated Monday, March 3rd. The shares were sold at an average price of $463.75, for a total value of $5,270,982.50. Following the completion of the transaction, the chief executive officer now directly owns 70,922 shares in the company, valued at $32,890,077.50. This trade represents a 13.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.62% of the stock is currently owned by corporate insiders.

Institutional Trading of Synopsys

A number of hedge funds and other institutional investors have recently modified their holdings of SNPS. Norges Bank purchased a new stake in shares of Synopsys during the fourth quarter worth about $583,608,000. GAMMA Investing LLC increased its position in shares of Synopsys by 54,286.0% during the first quarter. GAMMA Investing LLC now owns 1,196,492 shares of the semiconductor company's stock worth $513,116,000 after acquiring an additional 1,194,292 shares during the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of Synopsys by 21.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 5,902,696 shares of the semiconductor company's stock worth $2,864,933,000 after acquiring an additional 1,045,326 shares during the last quarter. Nuveen LLC purchased a new stake in shares of Synopsys during the first quarter worth about $341,480,000. Finally, Pictet Asset Management Holding SA increased its position in shares of Synopsys by 38.3% during the first quarter. Pictet Asset Management Holding SA now owns 2,432,596 shares of the semiconductor company's stock worth $1,043,518,000 after acquiring an additional 673,837 shares during the last quarter. 85.47% of the stock is 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.