Synopsys, Inc. (NASDAQ:SNPS) Receives Average Rating of “Moderate Buy” from Brokerages

Shares of Synopsys, Inc. (NASDAQ:SNPS) have been given a consensus recommendation of “Moderate Buy” by the seventeen brokerages that are presently covering the stock, Marketbeat reports. One analyst has rated the stock with a sell recommendation, five have given a hold recommendation, ten have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price target among analysts that have covered the stock in the last year is $570.0625.

SNPS has been the subject of a number of recent research reports. KeyCorp restated an “overweight” rating on shares of Synopsys in a research note on Thursday, May 28th. Bank of America lifted their price target on shares of Synopsys from $515.00 to $600.00 and gave the stock a “buy” rating in a research note on Thursday, May 28th. Rosenblatt Securities boosted their price target on shares of Synopsys from $530.00 to $575.00 and gave the company a “buy” rating in a report on Tuesday, May 26th. Piper Sandler upgraded shares of Synopsys from a “neutral” rating to an “overweight” rating and increased their price objective for the company from $450.00 to $550.00 in a research note on Tuesday, June 23rd. Finally, Morgan Stanley raised their price objective on shares of Synopsys from $480.00 to $525.00 and gave the stock an “equal weight” rating in a report on Thursday, May 28th.

Synopsys Stock Performance

SNPS stock traded up $2.13 during trading on Friday, reaching $445.50. 839,512 shares of the stock were exchanged, compared to its average volume of 1,858,163. Synopsys has a twelve month low of $376.18 and a twelve month high of $651.73. The company has a market capitalization of $85.30 billion, a P/E ratio of 103.12, a price-to-earnings-growth ratio of 2.62 and a beta of 1.22. The stock has a 50 day simple moving average of $477.80 and a 200-day simple moving average of $460.71. The company has a current ratio of 1.43, a quick ratio of 1.32 and a debt-to-equity ratio of 0.33.

Synopsys (NASDAQ:SNPS) last posted its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, beating the consensus estimate of $3.15 by $0.20. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The firm had revenue of $2.28 billion during the quarter, compared to analysts’ expectations of $2.25 billion. During the same quarter in the prior year, the firm posted $3.67 EPS. The company’s revenue for the quarter was up 41.9% on a year-over-year basis. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. As a group, sell-side analysts anticipate that Synopsys will post 10.65 earnings per share for the current year.

Insider Activity

In related news, CEO Sassine Ghazi sold 14,603 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $458.96, for a total value of $6,702,192.88. Following the completion of the transaction, the chief executive officer owned 75,020 shares of the company’s stock, valued at $34,431,179.20. This represents a 16.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Shelagh Glaser sold 3,394 shares of the firm’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the transaction, the chief financial officer owned 14,358 shares of the company’s stock, valued at approximately $6,461,387.16. This represents a 19.12% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.56% of the company’s stock.

Institutional Trading of Synopsys

Several institutional investors have recently bought and sold shares of the stock. Sowell Financial Services LLC increased its holdings in shares of Synopsys by 2.0% in the 4th quarter. Sowell Financial Services LLC now owns 1,056 shares of the semiconductor company’s stock valued at $496,000 after acquiring an additional 21 shares during the period. Natural Investments LLC lifted its stake in shares of Synopsys by 4.6% during the 4th quarter. Natural Investments LLC now owns 482 shares of the semiconductor company’s stock worth $226,000 after purchasing an additional 21 shares during the last quarter. Financial Management Professionals Inc. boosted its position in Synopsys by 7.0% during the fourth quarter. Financial Management Professionals Inc. now owns 335 shares of the semiconductor company’s stock valued at $157,000 after purchasing an additional 22 shares in the last quarter. Foronjy Financial LLC boosted its position in Synopsys by 5.2% during the fourth quarter. Foronjy Financial LLC now owns 446 shares of the semiconductor company’s stock valued at $210,000 after purchasing an additional 22 shares in the last quarter. Finally, Barden Capital Management Inc. grew its stake in Synopsys by 1.2% in the fourth quarter. Barden Capital Management Inc. now owns 1,868 shares of the semiconductor company’s stock valued at $877,000 after purchasing an additional 23 shares during the last quarter. Institutional investors and hedge funds own 85.47% of the company’s stock.

About Synopsys

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.