Synopsys, Inc. (NASDAQ:SNPS) Expected to Post Quarterly Sales of $1.15 Billion

Equities research analysts expect Synopsys, Inc. (NASDAQ:SNPS) to report sales of $1.15 billion for the current fiscal quarter, according to Zacks. Three analysts have provided estimates for Synopsys’ earnings, with the highest sales estimate coming in at $1.16 billion and the lowest estimate coming in at $1.15 billion. Synopsys posted sales of $1.03 billion in the same quarter last year, which suggests a positive year-over-year growth rate of 11.7%. The business is expected to announce its next earnings results on Wednesday, December 1st.

According to Zacks, analysts expect that Synopsys will report full year sales of $4.20 billion for the current year, with estimates ranging from $4.20 billion to $4.21 billion. For the next financial year, analysts expect that the company will post sales of $4.59 billion, with estimates ranging from $4.56 billion to $4.61 billion. Zacks Investment Research’s sales averages are an average based on a survey of research firms that cover Synopsys.

Synopsys (NASDAQ:SNPS) last issued its earnings results on Tuesday, August 17th. The semiconductor company reported $1.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.78 by $0.03. The business had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.05 billion. Synopsys had a net margin of 18.48% and a return on equity of 15.03%. The business’s revenue for the quarter was up 9.6% compared to the same quarter last year. During the same period in the previous year, the company earned $1.74 earnings per share.

SNPS has been the subject of a number of research analyst reports. Rosenblatt Securities initiated coverage on shares of Synopsys in a research note on Friday. They issued a “buy” rating and a $349.00 price target for the company. Westpark Capital initiated coverage on shares of Synopsys in a research note on Thursday, July 15th. They issued a “buy” rating and a $340.00 price target for the company. Wells Fargo & Company lifted their price target on shares of Synopsys from $325.00 to $340.00 and gave the stock an “overweight” rating in a research note on Thursday, August 19th. Robert W. Baird lifted their price target on shares of Synopsys from $320.00 to $350.00 and gave the stock an “outperform” rating in a research note on Thursday, August 19th. Finally, HSBC restated an “average” rating on shares of Synopsys in a research report on Thursday, August 26th. Two equities research analysts have rated the stock with a sell rating, two have given a hold rating and ten have given a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of “Buy” and an average price target of $322.50.

Shares of SNPS stock traded down $4.24 during trading hours on Monday, reaching $321.30. The company had a trading volume of 908,204 shares, compared to its average volume of 840,957. The business has a fifty day moving average price of $306.20 and a 200-day moving average price of $270.93. Synopsys has a one year low of $193.55 and a one year high of $340.66. The firm has a market cap of $49.00 billion, a PE ratio of 66.94, a price-to-earnings-growth ratio of 4.47 and a beta of 1.08.

Synopsys declared that its board has authorized a share buyback program on Thursday, June 17th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the semiconductor company to repurchase up to 1.2% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board of directors believes its stock is undervalued.

In other news, CEO Chi-Foon Chan sold 278,642 shares of the business’s stock in a transaction on Friday, August 20th. The shares were sold at an average price of $314.98, for a total value of $87,766,657.16. Following the transaction, the chief executive officer now owns 164,515 shares of the company’s stock, valued at $51,818,934.70. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, insider John F. Runkel, Jr. sold 4,238 shares of the business’s stock in a transaction on Wednesday, September 15th. The stock was sold at an average price of $333.00, for a total transaction of $1,411,254.00. Following the completion of the transaction, the insider now directly owns 21,198 shares in the company, valued at approximately $7,058,934. The disclosure for this sale can be found here. Over the last quarter, insiders sold 351,468 shares of company stock valued at $110,350,277. Company insiders own 1.56% of the company’s stock.

Hedge funds have recently added to or reduced their stakes in the company. Valley National Advisers Inc. lifted its holdings in shares of Synopsys by 326.9% in the second quarter. Valley National Advisers Inc. now owns 111 shares of the semiconductor company’s stock worth $31,000 after buying an additional 85 shares in the last quarter. Itau Unibanco Holding S.A. purchased a new stake in Synopsys during the second quarter valued at $33,000. Deseret Mutual Benefit Administrators purchased a new stake in Synopsys during the second quarter valued at $43,000. Massmutual Trust Co. FSB ADV raised its stake in Synopsys by 255.3% during the second quarter. Massmutual Trust Co. FSB ADV now owns 167 shares of the semiconductor company’s stock valued at $46,000 after purchasing an additional 120 shares in the last quarter. Finally, Logan Capital Management Inc. purchased a new stake in Synopsys during the first quarter valued at $49,000. 84.88% of the stock is currently owned by hedge funds and other institutional investors.

About Synopsys

Synopsys, Inc engages in the provision of software products and consulting services in the electronic design automation industry. The firm operates through the following segments: Semiconductor and System Design, and Software Integrity. It provides intellectual property products, which are pre-designed circuits that engineers use as components of larger chip designs, as well as software and hardware that are used to develop the electronic systems that incorporate chips and the software that runs on the circuits.

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