Synopsys (NASDAQ:SNPS) Shares Down 9.8% – Time to Sell?

Synopsys, Inc. (NASDAQ:SNPS) fell 9.8% on Friday . The company traded as low as $381.61 and last traded at $376.2020. 412,551 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 1,998,862 shares. The stock had previously closed at $417.03.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Benchmark upgraded Synopsys to Strong Buy and initiated/maintained a constructive view on the company’s long-term prospects, citing AI-driven demand and strong fundamentals for electronic design automation software. Why Is Synopsys Stock Falling on Friday?
• Positive Sentiment: Synopsys delivered fiscal Q2 revenue of $2.28 billion and non-GAAP EPS of $3.35, both ahead of expectations, and raised full-year revenue and earnings guidance, showing the business is still growing strongly. Synopsys Slides Despite Q2 Beat as Investors Focus on IP Weakness and Valuation
• Neutral Sentiment: Synopsys remains a closely watched stock with a generally favorable brokerage view, including an average rating of “Moderate Buy,” which suggests analysts still see upside despite recent volatility. Synopsys, Inc. Receives Average Rating of Moderate Buy from Brokerages
• Negative Sentiment: Investors are focusing on weakness in Synopsys’ Design IP segment, muted growth expectations for that business, and concerns about valuation after a strong run, which is fueling a sell-the-news reaction. Synopsys Slides Despite Q2 Beat as Investors Focus on IP Weakness and Valuation

Analysts Set New Price Targets

A number of research firms have issued reports on SNPS. Weiss Ratings restated a “hold (c-)” rating on shares of Synopsys in a research report on Monday, June 8th. KeyCorp reiterated an “overweight” rating on shares of Synopsys in a research note on Thursday, May 28th. Needham & Company LLC reissued a “buy” rating and issued a $580.00 target price on shares of Synopsys in a report on Thursday, May 28th. Piper Sandler upgraded shares of Synopsys from a “neutral” rating to an “overweight” rating and increased their price target for the company from $450.00 to $550.00 in a report on Tuesday, June 23rd. Finally, Wells Fargo & Company lifted their price objective on Synopsys from $505.00 to $535.00 and gave the stock an “equal weight” rating in a report on Thursday, May 28th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $570.06.

Synopsys Stock Down 8.2%

The company’s 50 day moving average price is $471.95 and its two-hundred day moving average price is $459.14. The company has a current ratio of 1.43, a quick ratio of 1.32 and a debt-to-equity ratio of 0.33. The firm has a market cap of $73.27 billion, a PE ratio of 88.72, a PEG ratio of 2.50 and a beta of 1.22.

Synopsys (NASDAQ:SNPS) last announced its earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, topping analysts’ consensus estimates of $3.15 by $0.20. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The company had revenue of $2.28 billion for the quarter, compared to analysts’ expectations of $2.25 billion. During the same period last year, the firm earned $3.67 EPS. Synopsys’s revenue for the quarter was up 41.9% compared to the same quarter last year. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. On average, equities research analysts expect that Synopsys, Inc. will post 10.65 EPS for the current fiscal year.

Insider Transactions at Synopsys

In other Synopsys news, CFO Shelagh Glaser sold 3,394 shares of the firm’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the sale, the chief financial officer owned 14,358 shares in the company, valued at approximately $6,461,387.16. This trade represents a 19.12% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of Synopsys stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the transaction, the chief executive officer directly owned 75,020 shares in the company, valued at $34,431,179.20. This represents a 16.29% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 0.56% of the stock is owned by insiders.

Institutional Trading of Synopsys

Institutional investors and hedge funds have recently modified their holdings of the company. Sankala Group LLC bought a new position in Synopsys in the 4th quarter worth $25,000. Elevation Wealth Partners LLC lifted its position in shares of Synopsys by 96.4% in the second 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 in the last quarter. Thurston Springer Miller Herd & Titak Inc. purchased a new position in shares of Synopsys in the fourth quarter valued at about $28,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Synopsys in the fourth quarter worth about $28,000. Finally, IMG Wealth Management Inc. bought a new position in shares of Synopsys in the first quarter worth about $30,000. 85.47% of the stock is currently owned by institutional investors.

Synopsys Company Profile

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.