Key Points
- Synopsys Executive Chair Aart de Geus sold 24,641 shares for approximately $10.34 million, reducing his holdings by 16.98%. The transaction, along with two recent sales totaling about $21.4 million, was conducted under a pre-arranged Rule 10b5-1 plan.
- Synopsys reported strong quarterly results, with EPS of $3.91 versus a $3.67 consensus estimate and revenue of $2.48 billion versus $2.44 billion expected. Revenue increased 42.4% year over year.
- Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $561.28, although valuation and sector risks persist as the stock trades at a P/E above 70 and below its 200-day moving average.
Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) insider Geus Aart De sold 24,641 shares of the company's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $419.44, for a total value of $10,335,421.04. Following the transaction, the insider directly owned 120,443 shares of the company's stock, valued at $50,518,611.92. The trade was a 16.98% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Geus Aart De also recently made the following trade(s):
- On Monday, August 31st, Geus Aart De sold 25,000 shares of Synopsys stock. The stock was sold at an average price of $441.76, for a total value of $11,044,000.00.
- On Friday, August 28th, Geus Aart De sold 25,000 shares of Synopsys stock. The shares were sold at an average price of $445.55, for a total transaction of $11,138,750.00.
Synopsys Trading Up 0.3%
Shares of SNPS opened at $415.97 on Thursday. Synopsys, Inc. has a 1-year low of $366.00 and a 1-year high of $615.79. The company has a current ratio of 1.34, a quick ratio of 1.24 and a debt-to-equity ratio of 0.29. The firm's 50-day moving average price is $414.25 and its 200-day moving average price is $439.94. The firm has a market capitalization of $79.72 billion, a price-to-earnings ratio of 73.49, a PEG ratio of 2.27 and a beta of 1.23.
Synopsys (NASDAQ:SNPS - Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, beating the consensus estimate of $3.67 by $0.24. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The business had revenue of $2.48 billion for the quarter, compared to analysts' expectations of $2.44 billion. During the same period in the previous year, the firm posted $3.39 EPS. The business's revenue was up 42.4% on a year-over-year basis. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. Sell-side analysts anticipate that Synopsys, Inc. will post 11 EPS for the current year.
Analysts Set New Price Targets
SNPS has been the subject of a number of recent research reports. Rosenblatt Securities reissued a "buy" rating and set a $575.00 price target on shares of Synopsys in a research report on Tuesday, August 25th. Citigroup increased their target price on Synopsys from $600.00 to $610.00 and gave the stock a "buy" rating in a research note on Thursday, May 28th. Benchmark reiterated a "buy" rating and issued a $570.00 price target on shares of Synopsys in a research note on Thursday, August 27th. Wells Fargo & Company decreased their target price on shares of Synopsys from $535.00 to $450.00 and set an "equal weight" rating for the company in a report on Tuesday, August 11th. Finally, Zacks Research downgraded shares of Synopsys from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 21st. Twelve equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $561.28.
Check Out Our Latest Stock Analysis on Synopsys
Synopsys News Summary
Here are the key news stories impacting Synopsys this week:
- Positive Sentiment: Wall Street analysts see approximately 25% potential upside based on the average price target. Synopsys maintains a “Moderate Buy” consensus, with several firms reiterating Buy ratings; Robert W. Baird upgraded the stock to Outperform and raised its target to $560. Wall Street Analysts See a 25.39% Upside in Synopsys
- Positive Sentiment: A recent analysis argues that the market may be underestimating Synopsys’ AI-related chip-design opportunity. The company’s latest revenue growth substantially exceeded that of a major electronic-design-automation rival, potentially supporting a valuation re-rating. The Market May Be Underestimating This AI Chip-Design Stock
- Positive Sentiment: Synopsys’ latest quarterly results provide fundamental support: adjusted EPS of $3.91 exceeded expectations of $3.67, revenue reached $2.48 billion versus a $2.44 billion estimate, and revenue increased 42.4% year over year.
- Neutral Sentiment: A look at Synopsys’ decade-long investment returns highlights its strong long-term performance, but the retrospective analysis is unlikely to materially affect near-term trading. Here's How Much You'd Have If You Invested $1000 in Synopsys a Decade Ago
- Negative Sentiment: Executive Chair Aart de Geus sold a combined 49,641 shares for roughly $21.4 million across transactions on August 31 and September 1. The sales reduced his holdings by about 17%; however, both transactions were made under a pre-arranged Rule 10b5-1 plan, which reduces their significance as a discretionary bearish signal. Synopsys SEC Insider Sale Filing
- Negative Sentiment: Synopsys is exposed to a broader semiconductor-sector pullback as rising global bond yields pressure high-multiple technology stocks. With a P/E ratio above 70 and the shares below their 200-day moving average, valuation and interest-rate sensitivity remain risks. Semiconductor Stocks Slide as Global Bond Selloff Lifts Yields
Hedge Funds Weigh In On Synopsys
Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Sankala Group LLC bought a new stake in shares of Synopsys in the fourth quarter worth approximately $25,000. Elevation Wealth Partners LLC raised its stake in Synopsys by 96.4% during the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company's stock valued at $25,000 after buying an additional 27 shares during the last quarter. Osbon Capital Management LLC bought a new position in shares of Synopsys during the 2nd quarter valued at $25,000. IMG Wealth Management Inc. bought a new stake in shares of Synopsys in the second quarter worth $28,000. Finally, Caitong International Asset Management Co. Ltd purchased a new stake in Synopsys during the fourth quarter valued at $28,000. Institutional investors own 85.47% of the company's stock.
Synopsys Company Profile
(
Get Free Report)
Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.
In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.
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