Synopsys, Inc. (NASDAQ:SNPS) Stock Rated “Moderate Buy” by Sell-Side Brokerages

Shares of Synopsys, Inc. (NASDAQ:SNPS) have earned a consensus rating of “Moderate Buy” from the twenty-six analysts that are currently covering the company, MarketBeat reports. Three equities research analysts have rated the stock with a hold rating, twenty-two have issued a buy rating and one has assigned a strong buy rating to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $575.00.

Several equities research analysts have recently commented on the stock. Barclays began coverage on shares of Synopsys in a research report on Friday, September 25th. They set an “overweight” rating for the company. Morgan Stanley boosted their price target on shares of Synopsys from $500.00 to $574.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 20th. Benchmark restated a “buy” rating and issued a $570.00 price objective on shares of Synopsys in a report on Thursday, August 27th. HSBC cut shares of Synopsys from a “buy” rating to a “reduce” rating in a research note on Friday, September 25th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $640.00 target price (up from $590.00) on shares of Synopsys in a report on Thursday, October 1st.

Insider Buying and Selling

In related news, CFO Sudhindra Kankanwadi sold 9,170 shares of Synopsys stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $500.00, for a total transaction of $4,585,000.00. Following the completion of the sale, the chief financial officer directly owned 22,717 shares of the company’s stock, valued at $11,358,500. The trade was a 28.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Janet Lee sold 1,144 shares of Synopsys stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $502.52, for a total value of $574,882.88. Following the sale, the insider directly owned 16,534 shares of the company’s stock, valued at approximately $8,308,665.68. This trade represents a 6.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 117,163 shares of company stock worth $51,366,457. Company insiders own 0.56% of the company’s stock.

Hedge Funds Weigh In On Synopsys

Several hedge funds have recently added to or reduced their stakes in the stock. Sankala Group LLC acquired a new position in shares of Synopsys during the 4th quarter worth about $25,000. Elevation Wealth Partners LLC increased its stake in shares of Synopsys by 96.4% in the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock valued at $25,000 after acquiring an additional 27 shares during the last quarter. Osbon Capital Management LLC bought a new stake in shares of Synopsys in the 2nd quarter valued at about $25,000. IMG Wealth Management Inc. acquired a new stake in shares of Synopsys in the 2nd quarter valued at approximately $28,000. Finally, GK Wealth Management LLC acquired a new stake in shares of Synopsys in the 3rd quarter valued at approximately $28,000. Institutional investors and hedge funds own 85.47% of the company’s stock.

Synopsys Price Performance

Shares of SNPS stock opened at $454.33 on Tuesday. The stock has a 50-day moving average price of $430.87 and a 200 day moving average price of $444.79. The company has a quick ratio of 1.24, a current ratio of 1.34 and a debt-to-equity ratio of 0.29. The firm has a market cap of $87.07 billion, a price-to-earnings ratio of 80.27, a PEG ratio of 1.75 and a beta of 1.21. Synopsys has a 12 month low of $362.55 and a 12 month high of $539.48.

Synopsys (NASDAQ:SNPS) last announced its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, topping 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 firm had revenue of $2.48 billion during the quarter, compared to analysts’ expectations of $2.44 billion. During the same period in the previous year, the business posted $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. Research analysts expect that Synopsys will post 11.01 EPS for the current year.

Synopsys announced that its Board of Directors has approved a stock repurchase plan on Monday, October 5th that allows the company to repurchase $1 billion in outstanding shares. This buyback authorization allows the semiconductor company to purchase up to 1.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Synopsys Company Profile

Synopsys, Inc is an electronic design automation (EDA) and semiconductor intellectual property company serving the global semiconductor and electronics industries. Its software helps engineers design, verify, test and manufacture advanced integrated circuits and electronic systems.

The company’s products and services support digital and analog design, functional verification, design-for-test, manufacturing and semiconductor engineering workflows. Synopsys also provides reusable semiconductor IP, including processor cores, interface technologies, security solutions and other components used in system-on-chip designs.

In addition to its semiconductor design offerings, Synopsys provides software development and application security tools intended to help organizations identify and manage vulnerabilities and risks across the software development lifecycle.