Key Points
- Synopsys insider Janet Lee sold 1,144 shares for approximately $574,883 at an average price of $502.52, reducing her position by 6.47% while retaining 16,534 shares.
- Synopsys recently beat quarterly estimates, reporting $3.91 in EPS and $2.48 billion in revenue, with revenue up 42.4% year over year. The board also authorized a $1 billion share-repurchase program.
- Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $584.11, though high valuation, acquisition-related debt, and additional insider selling remain potential headwinds.
Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) insider Janet Lee sold 1,144 shares of Synopsys stock in a transaction on Tuesday, October 6th. The shares were sold at an average price of $502.52, for a total value of $574,882.88. Following the completion of the transaction, the insider owned 16,534 shares in the company, valued at $8,308,665.68. The trade was a 6.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website.
Synopsys Stock Performance
Synopsys stock opened at $502.67 on Thursday. The company has a market cap of $96.33 billion, a price-to-earnings ratio of 88.81, a price-to-earnings-growth ratio of 2.06 and a beta of 1.21. Synopsys, Inc. has a 12 month low of $362.55 and a 12 month high of $539.48. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.34 and a quick ratio of 1.24. The stock's 50-day moving average is $415.01 and its 200-day moving average is $437.96.
Synopsys (NASDAQ:SNPS - Get Free Report) last posted its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.67 by $0.24. The firm had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.44 billion. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The company's revenue was up 42.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.39 EPS. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. Equities analysts anticipate that Synopsys, Inc. will post 10.97 earnings per share for the current year.
Synopsys declared that its board has authorized a stock buyback plan on Monday, October 5th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the semiconductor company to reacquire up to 1.1% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.
More Synopsys News
Here are the key news stories impacting Synopsys this week:
- Positive Sentiment: New AI chip-design alliances with OpenAI and Amazon strengthen Synopsys’ position in electronic-design-automation software for AI infrastructure. The expanded Amazon relationship could represent a significant long-term growth opportunity, potentially worth up to $1 billion. Synopsys Is Up 17.7% After New AI Chip-Design Alliances With OpenAI And Amazon
- Positive Sentiment: The board authorized a $1 billion share-repurchase program, allowing the company to buy back as much as 1.1% of outstanding shares. Repurchases could support earnings per share and signal management believes the stock is undervalued. Stock Repurchase Program Declared by Synopsys Board
- Positive Sentiment: Synopsys recently exceeded quarterly expectations, reporting $3.91 in adjusted EPS versus a $3.67 estimate and $2.48 billion in revenue versus $2.44 billion expected. Revenue rose 42.4% year over year, supporting the broader AI and semiconductor-design growth story.
- Neutral Sentiment: Analyst sentiment remains favorable overall, with a consensus rating of Moderate Buy and an average price target of $584.11. However, ratings range from HSBC’s “reduce” recommendation to Deutsche Bank’s $640 target, highlighting disagreement over valuation and near-term upside.
- Neutral Sentiment: Synopsys may be undervalued relative to its long-term role as a key design-software supplier for AI chips, but commentary also points to slowing EDA growth, acquisition-related debt of roughly $10 billion and a premium earnings multiple near 89 times.
- Negative Sentiment: Insider selling could weigh on sentiment. CFO Sudhindra Kankanwadi sold a combined 12,170 shares for approximately $6.04 million, reducing his holdings by roughly 40%; Janet Lee separately sold 1,144 shares worth about $575,000. These transactions do not necessarily indicate a change in business outlook, but they provide a near-term overhang. Synopsys Insider Selling
- Negative Sentiment: Despite repeated earnings beats, SNPS has reportedly declined after each recent earnings release, suggesting that high investor expectations may be limiting the stock’s reaction to strong results. Synopsys Is Hot Again But a Pattern Has Emerged
Analysts Set New Price Targets
A number of research analysts have commented on SNPS shares. KeyCorp boosted their price objective on Synopsys from $600.00 to $605.00 and gave the stock an "overweight" rating in a research note on Thursday, October 1st. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $640.00 price target on shares of Synopsys in a report on Thursday, October 1st. UBS Group set a $570.00 price objective on shares of Synopsys in a research note on Thursday, August 27th. Benchmark reissued a "buy" rating and set a $570.00 target price on shares of Synopsys in a research report on Thursday, August 27th. Finally, Piper Sandler raised shares of Synopsys from a "neutral" rating to an "overweight" rating and raised their price target for the company from $450.00 to $550.00 in a report on Tuesday, June 23rd. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $584.11.
Check Out Our Latest Report on SNPS
Institutional Trading of Synopsys
A number of hedge funds have recently made changes to their positions in SNPS. Sankala Group LLC bought a new position in Synopsys during the 4th quarter valued at $25,000. Elevation Wealth Partners LLC lifted its position in shares of Synopsys by 96.4% during the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company's stock worth $25,000 after purchasing an additional 27 shares during the last quarter. Osbon Capital Management LLC bought a new position in shares of Synopsys during the second quarter worth about $25,000. IMG Wealth Management Inc. acquired a new position in Synopsys in the second quarter worth about $28,000. Finally, Geneos Wealth Management Inc. grew its stake in Synopsys by 151.5% in the first quarter. Geneos Wealth Management Inc. now owns 83 shares of the semiconductor company's stock worth $33,000 after purchasing an additional 50 shares in the last quarter. Institutional investors and hedge funds own 85.47% of the company's stock.
About Synopsys
(
Get Free Report)
Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and software tools used to design, verify, and manufacture advanced electronic systems. Its solutions support the development of semiconductors, systems-on-chip, and electronic products across the design cycle, from initial specification and architecture through testing and production.
The company's offerings include digital and custom integrated-circuit design tools, simulation and verification software, physical design and signoff products, and semiconductor IP such as processor cores, interface technologies, and foundational components.
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