The Goldman Sachs Group Cuts Synopsys (NASDAQ:SNPS) Price Target to $600.00

Key Points

• Goldman Sachs has cut the price target for Synopsys (NASDAQ:SNPS) from $700 to $600, while maintaining a "buy" rating, indicating a potential upside of 53.32% from the recent stock price.
• Multiple brokerages have adjusted their ratings on Synopsys, with Bank of America downgrading it to "underperform" and setting a target at $525, while other firms have also lowered their targets significantly.
• Insider trading includes significant sales by Synopsys executives, with CEO Sassine Ghazi selling over 11,000 shares, reflecting a 13.70% decrease in his ownership stake.

Synopsys (NASDAQ:SNPS - Get Free Report) had its price objective lowered by research analysts at The Goldman Sachs Group from $700.00 to $600.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the semiconductor company's stock. The Goldman Sachs Group's price objective would indicate a potential upside of 53.32% from the company's previous close.

Several other brokerages have also recently weighed in on SNPS. Bank of America cut shares of Synopsys from a "buy" rating to an "underperform" rating and set a $525.00 price objective for the company. in a research note on Wednesday. Stifel Nicolaus dropped their price objective on shares of Synopsys from $650.00 to $550.00 and set a "buy" rating for the company in a research note on Wednesday. Piper Sandler dropped their price objective on shares of Synopsys from $660.00 to $630.00 and set an "overweight" rating for the company in a research note on Wednesday. Wells Fargo & Company dropped their price objective on shares of Synopsys from $630.00 to $550.00 and set an "equal weight" rating for the company in a research note on Wednesday. Finally, JPMorgan Chase & Co. dropped their price objective on shares of Synopsys from $685.00 to $600.00 and set an "overweight" rating for the company in a research note on Wednesday. Eleven investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $599.00.

Synopsys Stock Performance

Shares of NASDAQ SNPS traded down $213.02 during mid-day trading on Wednesday, reaching $391.35. 14,161,104 shares of the company were exchanged, compared to its average volume of 1,477,346. Synopsys has a twelve month low of $365.74 and a twelve month high of $651.73. The company has a quick ratio of 6.85, a current ratio of 7.02 and a debt-to-equity ratio of 1.01. The company's 50-day simple moving average is $597.69 and its 200-day simple moving average is $507.82. The stock has a market capitalization of $60.72 billion, a P/E ratio of 28.16, a P/E/G ratio of 4.00 and a beta of 1.14.

Insider Buying and Selling

In other Synopsys news, CEO Sassine Ghazi sold 11,366 shares of the business's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $589.01, for a total transaction of $6,694,687.66. Following the sale, the chief executive officer directly owned 71,615 shares of the company's stock, valued at $42,181,951.15. The trade was a 13.70% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, 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 directly owned 15,317 shares in the company, valued at $9,339,847.09. The trade was a 19.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 24,031 shares of company stock worth $13,168,999 in the last three months. 0.62% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Cornerstone Planning Group LLC lifted its position in shares of Synopsys by 275.0% during the 1st quarter. Cornerstone Planning Group LLC now owns 60 shares of the semiconductor company's stock valued at $25,000 after acquiring an additional 44 shares during the period. Saudi Central Bank acquired a new position in shares of Synopsys during the 1st quarter valued at $26,000. Clal Insurance Enterprises Holdings Ltd raised its holdings in Synopsys by 441.7% during the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 65 shares of the semiconductor company's stock worth $28,000 after buying an additional 53 shares during the last quarter. Independence Bank of Kentucky raised its holdings in Synopsys by 120.0% during the second quarter. Independence Bank of Kentucky now owns 55 shares of the semiconductor company's stock worth $28,000 after buying an additional 30 shares during the last quarter. Finally, Ameriflex Group Inc. acquired a new position in Synopsys during the fourth quarter worth $29,000. Institutional investors and hedge funds 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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