Synopsys (NASDAQ:SNPS) to Repurchase $1.00 billion in Stock

Synopsys (NASDAQ:SNPS) declared that its Board of Directors has initiated a share buyback plan on Monday, October 5th, RTT News reports. The company plans to buyback $1.00 billion in shares. This buyback authorization authorizes the semiconductor company to reacquire up to 1.1% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s management believes its shares are undervalued.

Synopsys Stock Down 0.3%

SNPS stock traded down $1.43 during midday trading on Monday, hitting $488.47. The company’s stock had a trading volume of 2,818,480 shares, compared to its average volume of 2,223,150. The firm’s 50-day moving average is $410.00 and its 200-day moving average is $436.90. The company has a current ratio of 1.34, a quick ratio of 1.24 and a debt-to-equity ratio of 0.29. Synopsys has a 12 month low of $362.55 and a 12 month high of $539.48. The company has a market cap of $93.61 billion, a PE ratio of 86.30, a P/E/G ratio of 2.00 and a beta of 1.21.

Synopsys (NASDAQ:SNPS) last posted its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 EPS for the quarter, topping analysts’ consensus estimates 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 during the quarter, compared to analyst estimates of $2.44 billion. During the same quarter last year, the company earned $3.39 EPS. The company’s quarterly revenue was up 42.4% compared to the same quarter last year. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. On average, equities research analysts forecast that Synopsys will post 10.97 earnings per share for the current fiscal year.

Analyst Ratings Changes

SNPS has been the topic of a number of recent research reports. Zacks Research cut Synopsys from a “strong-buy” rating to a “hold” rating in a research note on Friday, August 21st. Barclays started coverage on Synopsys in a research report on Friday, September 25th. They issued an “overweight” rating for the company. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $640.00 price target on shares of Synopsys in a research note on Thursday. Needham & Company LLC reissued a “buy” rating and set a $580.00 price objective on shares of Synopsys in a research report on Thursday, August 27th. Finally, UBS Group set a $570.00 price objective on shares of Synopsys in a research note on Thursday, August 27th. Seventeen analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Synopsys presently has an average rating of “Moderate Buy” and an average price target of $584.11.

Insider Activity

In other Synopsys news, insider Aart de Geus sold 24,641 shares of the company’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $419.44, for a total transaction of $10,335,421.04. Following the transaction, the insider owned 120,443 shares in the company, valued at approximately $50,518,611.92. This represents a 16.98% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,604 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $374.88, for a total transaction of $5,474,747.52. Following the sale, the chief executive officer directly owned 76,865 shares in the company, valued at approximately $28,815,151.20. The trade was a 15.97% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 89,245 shares of company stock valued at $37,992,919 over the last quarter. 0.56% of the stock is owned by corporate insiders.

About Synopsys

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.