Synopsys Sees Unusually Large Options Volume (NASDAQ:SNPS)

Key Points

• Synopsys, Inc. experienced an unusual spike in options trading, with 22,257 call options purchased, marking an increase of approximately 473% from its typical volume.
• The company’s stock rose by 9.5% to $424.48, with over 6 million shares exchanged, significantly exceeding the average trading volume.
• Insider trading activity saw CFO Shelagh Glaser selling 3,655 shares, leading to a substantial decrease in ownership, while institutional investors collectively hold 85.47% of the company’s stock.

Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) was the recipient of unusually large options trading on Thursday. Stock investors bought 22,257 call options on the stock. This is an increase of 473% compared to the typical volume of 3,886 call options.

Insider Activity at Synopsys

In other news, CRO Richard S. Mahoney sold 9,010 shares of the firm's stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $471.21, for a total value of $4,245,602.10. Following the completion of the transaction, the executive directly owned 1,485 shares of the company's stock, valued at $699,746.85. This trade represents a 85.85% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Sassine Ghazi sold 11,366 shares of the firm's stock in a transaction dated Tuesday, September 2nd. The shares were 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 in the company, valued at $42,181,951.15. The trade was a 13.70% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 24,031 shares of company stock valued at $13,168,999. 0.62% of the stock is owned by insiders.

Institutional Trading of Synopsys

Hedge funds have recently made changes to their positions in the company. North Star Asset Management Inc. raised its position in Synopsys by 3.6% during the first quarter. North Star Asset Management Inc. now owns 60,270 shares of the semiconductor company's stock worth $25,847,000 after acquiring an additional 2,082 shares during the last quarter. SlateStone Wealth LLC grew its stake in Synopsys by 467.8% during the first quarter. SlateStone Wealth LLC now owns 10,220 shares of the semiconductor company's stock worth $4,383,000 after buying an additional 8,420 shares during the period. Dynamic Advisor Solutions LLC purchased a new stake in Synopsys during the first quarter worth approximately $1,000,000. Mattson Financial Services LLC purchased a new stake in Synopsys during the first quarter worth approximately $1,410,000. Finally, Wealth Enhancement Advisory Services LLC boosted its stake in shares of Synopsys by 3.4% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 20,172 shares of the semiconductor company's stock valued at $8,651,000 after purchasing an additional 655 shares during the period. Institutional investors and hedge funds own 85.47% of the company's stock.

Synopsys Stock Down 2.9%

SNPS traded down $12.65 during trading hours on Friday, hitting $425.45. 6,682,955 shares of the company's stock were exchanged, compared to its average volume of 2,823,175. Synopsys has a 12-month low of $365.74 and a 12-month high of $651.73. The firm has a 50 day moving average of $590.39 and a 200 day moving average of $506.79. The company has a current ratio of 1.62, a quick ratio of 6.85 and a debt-to-equity ratio of 0.52. The firm has a market cap of $79.03 billion, a P/E ratio of 33.39, a price-to-earnings-growth ratio of 3.32 and a beta of 1.14.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Robert W. Baird reaffirmed a "neutral" rating and issued a $535.00 price objective (down from $670.00) on shares of Synopsys in a research report on Wednesday. Needham & Company LLC dropped their price objective on shares of Synopsys from $660.00 to $550.00 and set a "buy" rating for the company in a report on Wednesday. Morgan Stanley lowered their price target on shares of Synopsys from $715.00 to $510.00 and set an "overweight" rating for the company in a report on Thursday. KeyCorp reduced their target price on shares of Synopsys from $660.00 to $590.00 and set an "overweight" rating on the stock in a research report on Wednesday. Finally, Bank of America reissued an "underperform" rating and set a $525.00 price objective (down from $625.00) on shares of Synopsys in a report on Wednesday. Eleven equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $585.33.

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.