Synopsys (NASDAQ:SNPS) CFO Sells $4,585,000.00 in Stock

Synopsys, Inc. (NASDAQ:SNPS) CFO Sudhindra Kankanwadi sold 9,170 shares of the stock in a transaction that occurred 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 transaction, the chief financial officer directly owned 22,717 shares in the company, valued at approximately $11,358,500. This represents a 28.76% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.

Sudhindra Kankanwadi also recently made the following trade(s):

• On Monday, October 5th, Sudhindra Kankanwadi sold 3,000 shares of Synopsys stock. The shares were sold at an average price of $484.78, for a total transaction of $1,454,340.00.

Synopsys Trading Down 1.0%

SNPS stock opened at $497.75 on Friday. The company has a market cap of $95.39 billion, a price-to-earnings ratio of 87.94, a PEG ratio of 2.05 and a beta of 1.21. 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 business has a fifty day simple moving average of $417.52 and a 200-day simple moving average of $438.50. Synopsys, Inc. has a 52 week low of $362.55 and a 52 week high of $539.48.

Synopsys (NASDAQ:SNPS) last issued its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, beating analysts’ consensus estimates of $3.67 by $0.24. The firm had revenue of $2.48 billion for 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 firm’s revenue for the quarter was up 42.4% compared to the same quarter last year. During the same quarter last year, the firm earned $3.39 earnings per share. 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 expect that Synopsys, Inc. will post 10.97 EPS for the current year.

Synopsys announced that its board has initiated a share buyback program on Monday, October 5th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the semiconductor company to buy up to 1.1% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s board believes its shares are undervalued.

Analyst Ratings Changes

SNPS has been the subject of several recent research reports. Needham & Company LLC reissued a “buy” rating and issued a $580.00 price objective on shares of Synopsys in a research report on Thursday, August 27th. Zacks Research raised Synopsys from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 2nd. Robert W. Baird raised Synopsys from a “neutral” rating to an “outperform” rating and upped their target price for the stock from $558.00 to $560.00 in a research report on Thursday, August 27th. Roth Capital upgraded Synopsys to a “buy” rating in a report on Friday, September 25th. Finally, BNP Paribas Exane raised Synopsys from an “underperform” rating to a “neutral” rating and set a $420.00 price target on the stock in a research report on Thursday, September 24th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $584.11.

Trending Headlines about Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys remains a major beneficiary of rising AI-chip complexity. Recent commentary highlights its electronic-design-automation software as increasingly essential for chip design and verification, while partnerships involving OpenAI, Amazon and Nvidia could support long-term growth. Nvidia partner receives strong-buy endorsement
• Positive Sentiment: The board authorized a roughly $1 billion share-repurchase program, representing as much as 1.1% of outstanding shares. Buybacks could support earnings per share and signal management’s confidence in the company’s valuation. Synopsys stock repurchase program
• Positive Sentiment: Synopsys recently exceeded quarterly expectations, reporting $3.91 in earnings per share versus a $3.67 consensus estimate and $2.48 billion in revenue versus $2.44 billion expected. Revenue increased 42.4% year over year, reinforcing the AI-driven growth narrative.
• Neutral Sentiment: Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $584.11. However, targets range widely, reflecting disagreement over how much of Synopsys’ AI opportunity is already priced into the stock. Can Synopsys stock drop from here?
• Negative Sentiment: The stock’s premium valuation—roughly 88 times earnings—leaves it vulnerable to profit-taking if growth expectations soften. Commentary also cites acquisition-related debt of approximately $10 billion and signs of moderating EDA growth as risks. Synopsys AI chip-design market analysis
• Negative Sentiment: Insider selling is adding to near-term pressure. CFO Sudhindra Kankanwadi sold 12,170 shares for about $6.04 million across two transactions, while Janet Lee sold 1,144 shares worth roughly $575,000. These sales do not necessarily indicate deteriorating fundamentals but may weaken sentiment.
• Negative Sentiment: A report that Synopsys plans to explore working with Chinese AI laboratories introduces potential export-control and geopolitical concerns, even though such cooperation could expand its addressable market. Synopsys exploring work with Chinese AI labs

Institutional Trading of Synopsys

Several large investors have recently modified their holdings of SNPS. BlackRock Inc. purchased a new position in Synopsys in the second quarter valued at about $7,228,099,000. State Street Corp increased its holdings in Synopsys by 0.3% during the 4th quarter. State Street Corp now owns 8,788,890 shares of the semiconductor company’s stock worth $4,128,317,000 after purchasing an additional 28,532 shares during the last quarter. Van ECK Associates Corp raised its position in shares of Synopsys by 19.7% in the 2nd quarter. Van ECK Associates Corp now owns 3,457,249 shares of the semiconductor company’s stock valued at $1,542,175,000 after purchasing an additional 569,687 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Synopsys by 40.7% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,087,349 shares of the semiconductor company’s stock valued at $1,377,174,000 after purchasing an additional 892,736 shares in the last quarter. Finally, Assenagon Asset Management S.A. boosted its stake in shares of Synopsys by 39.5% during the 2nd quarter. Assenagon Asset Management S.A. now owns 2,455,402 shares of the semiconductor company’s stock valued at $1,095,281,000 after buying an additional 695,146 shares during the last quarter. 85.47% of the stock is currently owned by institutional investors and hedge funds.

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.