Synopsys, Inc. $SNPS Stock: Sustainable Growth Advisers LP Trims Stake

Sustainable Growth Advisers LP lessened its holdings in Synopsys, Inc. (NASDAQ:SNPS) by 3.8% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 776,555 shares of the semiconductor company’s stock after selling 30,791 shares during the quarter. Synopsys accounts for 3.7% of Sustainable Growth Advisers LP’s investment portfolio, making the stock its 9th largest position. Sustainable Growth Advisers LP owned approximately 0.41% of Synopsys worth $337,755,000 as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. Sankala Group LLC bought a new position in Synopsys during the fourth quarter valued at about $25,000. Elevation Wealth Partners LLC increased its holdings in Synopsys by 96.4% during the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock worth $25,000 after buying an additional 27 shares during the last quarter. Osbon Capital Management LLC bought a new stake in Synopsys in the second quarter worth about $25,000. IMG Wealth Management Inc. bought a new stake in Synopsys in the second quarter worth about $28,000. Finally, GK Wealth Management LLC bought a new stake in Synopsys in the third quarter worth about $28,000. 85.47% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Synopsys

In related news, CFO Sudhindra Kankanwadi sold 9,170 shares of Synopsys stock in a transaction that occurred on Tuesday, October 6th. The shares were sold at an average price of $500.00, for a total value of $4,585,000.00. Following the completion of the transaction, the chief financial officer directly owned 22,717 shares in the company, valued at approximately $11,358,500. The trade was a 28.76% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Aart de Geus sold 24,641 shares of Synopsys stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $419.44, for a total transaction of $10,335,421.04. Following the completion of the transaction, the insider owned 120,443 shares of the company’s stock, valued at $50,518,611.92. This represents a 16.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 102,559 shares of company stock valued at $44,607,141. 0.56% of the stock is owned by corporate insiders.

Synopsys Stock Down 2.5%

SNPS stock opened at $468.11 on Friday. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34. The company has a market capitalization of $89.71 billion, a price-to-earnings ratio of 82.71, a PEG ratio of 1.96 and a beta of 1.21. Synopsys, Inc. has a fifty-two week low of $362.55 and a fifty-two week high of $539.48. The stock has a fifty day moving average of $426.79 and a 200-day moving average of $441.42.

Synopsys (NASDAQ:SNPS) last announced its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.67 by $0.24. The business 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 quarterly revenue was up 42.4% compared to the same quarter last year. During the same period in the previous 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. As a group, equities research analysts predict that Synopsys, Inc. will post 10.97 earnings per share for the current year.

Synopsys declared that its board has approved a share buyback program on Monday, October 5th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the semiconductor company to purchase up to 1.1% of its shares through open market purchases. Share repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

Analysts Set New Price Targets

SNPS has been the topic of a number of research analyst reports. UBS Group set a $570.00 target price on shares of Synopsys in a research note on Thursday, August 27th. Piper Sandler upgraded shares of Synopsys from a “neutral” rating to an “overweight” rating and raised their price target for the stock from $450.00 to $550.00 in a research note on Tuesday, June 23rd. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $640.00 price target (up from $590.00) on shares of Synopsys in a research note on Thursday, October 1st. Bank of America lifted their price target on shares of Synopsys from $500.00 to $600.00 in a report on Thursday, October 1st. Finally, Zacks Research raised shares of Synopsys from a “hold” rating to a “strong-buy” rating in a report on Friday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $571.78.

Synopsys 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.