Synopsys (NASDAQ:SNPS) Stock Sees Heavy Call Option Buying

Synopsys, Inc. (NASDAQ:SNPS) was the target of some unusual options trading on Thursday. Traders bought 12,317 call options on the company. This represents an increase of 102% compared to the typical volume of 6,097 call options.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on SNPS shares. Wells Fargo & Company boosted their price objective on Synopsys from $475.00 to $540.00 and gave the stock an “overweight” rating in a research note on Thursday. Needham & Company LLC reissued a “buy” rating and issued a $580.00 price objective on shares of Synopsys in a research note on Thursday, August 27th. Piper Sandler raised shares of Synopsys from a “neutral” rating to an “overweight” rating and lifted their target price for the stock from $450.00 to $550.00 in a research note on Tuesday, June 23rd. Morgan Stanley reduced their target price on shares of Synopsys from $525.00 to $500.00 and set an “equal weight” rating for the company in a research report on Wednesday, August 19th. Finally, Sanford C. Bernstein initiated coverage on shares of Synopsys in a research note on Friday, September 25th. They set an “outperform” rating for the company. Seventeen analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $584.11.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Fiscal 2027 outlook exceeded consensus estimates. Synopsys forecast revenue of approximately $11.1 billion to $11.2 billion and adjusted EPS of $19.04 to $19.12, above analyst expectations of roughly $10.8 billion and $16.78, respectively. What’s Going On With Synopsys Shares Thursday?
• Positive Sentiment: Amazon became a major silicon-IP customer. Synopsys and Amazon Web Services signed a multiyear custom-chip agreement valued at more than $1 billion. The deal includes Synopsys IP licensing, AI-powered engineering collaboration and a shift toward license-plus-royalty economics, potentially supporting recurring revenue and future upside as chip production grows. Synopsys and Amazon Web Services sign chip design licensing deal worth more than $1 billion
• Positive Sentiment: The OpenAI partnership strengthens Synopsys’ AI strategy. The companies plan to develop “GPT-Synopsys,” a specialized model combining OpenAI technology with Synopsys’ electronic-design-automation tools. The agreement includes tool licensing, joint research and development, go-to-market efforts and shared revenue, reinforcing Synopsys’ position as a potential beneficiary of AI-driven chip-design demand. OpenAI and Synopsys Announce GPT-Synopsys
• Positive Sentiment: Analysts raised their expectations. Rosenblatt Securities lifted its price target to $620 and maintained a Buy rating, while reports said Synopsys’ long-term earnings targets were well ahead of consensus. The company also announced a planned $1 billion share repurchase program. Synopsys Stock Rises as 15% Growth Target Meets $1B Buyback and OpenAI Deal
• Neutral Sentiment: Synopsys is attracting unusually high investor attention. However, its elevated valuation means the stock may remain sensitive to execution, customer concentration, and whether the announced partnerships translate into revenue and profit growth. Synopsys Is a Trending Stock

Insider Activity at Synopsys

In other news, CEO Sassine Ghazi sold 14,604 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $374.88, for a total transaction of $5,474,747.52. Following the transaction, the chief executive officer owned 76,865 shares in the company, valued at $28,815,151.20. This trade represents a 15.97% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Aart de Geus sold 25,000 shares of the business’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $441.76, for a total transaction of $11,044,000.00. Following the completion of the sale, the insider directly owned 120,421 shares of the company’s stock, valued at approximately $53,197,180.96. The trade was a 17.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 89,245 shares of company stock valued at $37,992,919. Corporate insiders own 0.56% of the company’s stock.

Institutional Trading of Synopsys

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. AGH Wealth Advisors LLC grew its stake in shares of Synopsys by 4.4% in the first quarter. AGH Wealth Advisors LLC now owns 569 shares of the semiconductor company’s stock valued at $226,000 after buying an additional 24 shares in the last quarter. MCF Advisors LLC grew its position in Synopsys by 17.8% in the 4th quarter. MCF Advisors LLC now owns 172 shares of the semiconductor company’s stock valued at $81,000 after acquiring an additional 26 shares in the last quarter. Sumitomo Life Insurance Co. increased its stake in Synopsys by 0.4% during the fourth quarter. Sumitomo Life Insurance Co. now owns 6,742 shares of the semiconductor company’s stock worth $3,167,000 after purchasing an additional 27 shares during the period. Elevation Wealth Partners LLC boosted its stake 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 purchasing an additional 27 shares during the period. Finally, Bar Harbor Wealth Management grew its holdings in shares of Synopsys by 0.7% in the first quarter. Bar Harbor Wealth Management now owns 4,181 shares of the semiconductor company’s stock valued at $1,658,000 after purchasing an additional 31 shares in the last quarter. Hedge funds and other institutional investors own 85.47% of the company’s stock.

Synopsys Trading Up 10.9%

SNPS stock traded up $47.51 during midday trading on Thursday, hitting $482.45. 3,508,400 shares of the company’s stock were exchanged, compared to its average volume of 2,006,814. Synopsys has a 1-year low of $362.55 and a 1-year high of $539.48. The company has a current ratio of 1.34, a quick ratio of 1.24 and a debt-to-equity ratio of 0.29. The stock has a market capitalization of $92.46 billion, a PE ratio of 84.91, a P/E/G ratio of 2.27 and a beta of 1.23. The business has a 50-day simple moving average of $403.35 and a two-hundred day simple moving average of $435.48.

Synopsys (NASDAQ:SNPS) last released its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, topping analysts’ consensus estimates of $3.67 by $0.24. The business had revenue of $2.48 billion during the quarter, compared to analysts’ expectations of $2.44 billion. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The company’s revenue was up 42.4% compared to the same quarter last year. During the same period in the prior year, the business posted $3.39 EPS. 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, sell-side analysts predict that Synopsys will post 10.97 EPS for the current fiscal year.

Synopsys Company Profile

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.