Wells Fargo & Company Forecasts Strong Price Appreciation for Synopsys (NASDAQ:SNPS) Stock

Key Points

• Wells Fargo & Company has raised its price target for Synopsys (NASDAQ:SNPS) from $520.00 to $630.00, indicating a potential upside of 5.04% from the current price, while maintaining an "equal weight" rating on the stock.
• Multiple firms have issued positive ratings and increased target prices for Synopsys, with notable increases from Bank of America to $625.00 and Piper Sandler to $660.00, reflecting a strong consensus among analysts.
• Synopsys recently reported a quarterly earnings per share of $3.67, surpassing analysts' expectations, with a year-over-year revenue increase of 10.3% to $1.60 billion.

Synopsys (NASDAQ:SNPS - Get Free Report) had its target price hoisted by investment analysts at Wells Fargo & Company from $520.00 to $630.00 in a report issued on Wednesday,Benzinga reports. The firm currently has an "equal weight" rating on the semiconductor company's stock. Wells Fargo & Company's target price suggests a potential upside of 5.04% from the company's current price.

Several other research firms have also recently weighed in on SNPS. Bank of America increased their price objective on Synopsys from $575.00 to $625.00 and gave the stock a "buy" rating in a research report on Wednesday, July 16th. Rosenblatt Securities increased their price target on Synopsys from $625.00 to $650.00 and gave the company a "buy" rating in a research note on Friday, July 25th. Piper Sandler raised their price target on shares of Synopsys from $615.00 to $660.00 and gave the company an "overweight" rating in a research note on Monday, July 21st. Needham & Company LLC reaffirmed a "buy" rating and set a $660.00 target price (up from $650.00) on shares of Synopsys in a research report on Tuesday, July 15th. Finally, The Goldman Sachs Group assumed coverage on shares of Synopsys in a report on Thursday, July 10th. They issued a "buy" rating and a $620.00 target price on the stock. Twelve equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $634.64.

Synopsys Stock Up 0.6%

Shares of NASDAQ:SNPS traded up $3.78 during midday trading on Wednesday, reaching $599.78. The company had a trading volume of 113,860 shares, compared to its average volume of 1,408,202. Synopsys has a 1-year low of $365.74 and a 1-year high of $651.73. The stock has a market cap of $93.06 billion, a PE ratio of 43.30, a P/E/G ratio of 3.92 and a beta of 1.15. 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 business's 50 day moving average price is $575.05 and its 200 day moving average price is $501.69.

Synopsys (NASDAQ:SNPS - Get Free Report) last announced its quarterly earnings results on Wednesday, May 28th. The semiconductor company reported $3.67 EPS for the quarter, beating analysts' consensus estimates of $3.40 by $0.27. Synopsys had a net margin of 34.77% and a return on equity of 17.09%. The firm had revenue of $1.60 billion during the quarter, compared to analysts' expectations of $1.60 billion. During the same quarter last year, the company posted $3.00 earnings per share. The company's revenue for the quarter was up 10.3% compared to the same quarter last year. Research analysts forecast that Synopsys will post 10.64 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Shelagh Glaser sold 7,310 shares of the firm's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $485.72, for a total transaction of $3,550,613.20. Following the sale, the chief financial officer directly owned 15,291 shares of the company's stock, valued at $7,427,144.52. This trade represents a 32.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Sassine Ghazi sold 11,366 shares of Synopsys stock in a transaction that occurred on Monday, June 2nd. The shares were sold at an average price of $457.93, for a total value of $5,204,832.38. Following the transaction, the chief executive officer owned 71,589 shares of the company's stock, valued at approximately $32,782,750.77. This represents a 13.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 27,686 shares of company stock valued at $13,001,048. Company insiders own 0.62% of the company's stock.

Hedge Funds Weigh In On Synopsys

Institutional investors have recently made changes to their positions in the company. Cornerstone Planning Group LLC boosted its position in Synopsys by 275.0% during the first quarter. Cornerstone Planning Group LLC now owns 60 shares of the semiconductor company's stock worth $25,000 after purchasing an additional 44 shares in the last quarter. Saudi Central Bank purchased a new position in shares of Synopsys during the 1st quarter valued at approximately $26,000. Clal Insurance Enterprises Holdings Ltd increased its holdings in Synopsys by 441.7% in the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 65 shares of the semiconductor company's stock worth $28,000 after acquiring an additional 53 shares in the last quarter. Independence Bank of Kentucky raised its position 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 acquiring an additional 30 shares during the period. Finally, Ameriflex Group Inc. purchased a new position in Synopsys during the fourth quarter valued at $29,000. 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.

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