Synopsys (NASDAQ:SNPS) Shares Cross Below 200-Day Moving Average – What’s Next?

Shares of Synopsys, Inc. (NASDAQ:SNPS) passed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $442.57 and traded as low as $436.50. Synopsys shares last traded at $440.31, with a volume of 2,777,137 shares.

Trending Headlines about Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Rothschild & Co Redburn raised its price target to $615 from $550, signaling a more optimistic outlook from the firm. Rothschild & Co Redburn adjusts Synopsys price target
• Positive Sentiment: Marvell adopted Synopsys’ Galaxy platform for high-performance communications products, providing a customer and product-use win for the company’s chip-design tools. Marvell adopts Synopsys Galaxy platform
• Positive Sentiment: Synopsys expanded access to advanced chip-design capabilities through the European Chips Design Platform, supporting broader reach for its design tools. Synopsys expands access through European Chips Design Platform
• Neutral Sentiment: The company said it will report fourth-quarter and fiscal-year 2026 results after market close on December 8. The announcement sets the next major event for investors but provides no new financial results. Synopsys announces fourth-quarter and fiscal-year 2026 earnings date
• Negative Sentiment: A Yahoo Finance article notes that Synopsys trades at a premium to cash flow, which may make the stock more vulnerable to selling if investors question its valuation. Synopsys stock trades at a premium to cash flow
• Negative Sentiment: Synopsys fell more than the broader market in the latest session, though the report describes the decline rather than identifying a specific cause. Synopsys dips more than the broader market

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the stock. BNP Paribas Exane lifted their price objective on shares of Synopsys from $420.00 to $475.00 and gave the company a “neutral” rating in a report on Thursday, October 1st. Benchmark reaffirmed a “buy” rating and set a $570.00 target price on shares of Synopsys in a research report on Thursday, August 27th. Rothschild & Co Redburn decreased their price target on shares of Synopsys from $560.00 to $550.00 and set a “buy” rating for the company in a research note on Wednesday, September 23rd. Zacks Research upgraded Synopsys from a “hold” rating to a “strong-buy” rating in a report on Friday, October 2nd. Finally, Weiss Ratings cut Synopsys from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, September 11th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $575.00.

Synopsys Trading Down 4.9%

The stock has a 50-day moving average of $441.90 and a 200 day moving average of $442.57. The stock has a market cap of $84.38 billion, a PE ratio of 77.79, a price-to-earnings-growth ratio of 1.47 and a beta of 1.18. The company has a quick ratio of 1.24, a current ratio of 1.34 and a debt-to-equity ratio of 0.29.

Synopsys (NASDAQ:SNPS) last issued its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.67 by $0.24. The firm had revenue of $2.48 billion during the quarter, compared to analysts’ expectations of $2.44 billion. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The firm’s revenue was up 42.4% compared to the same quarter last year. During the same quarter last year, the company posted $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. As a group, sell-side analysts anticipate that Synopsys, Inc. will post 11.01 earnings per share for the current year.

Synopsys announced that its board has approved a stock buyback program on Monday, October 5th that authorizes the company to buy back $1 billion in outstanding shares. This repurchase authorization authorizes the semiconductor company to buy up to 1.1% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.

Insider Activity

In related news, CEO Sassine Ghazi sold 14,604 shares of the business’s stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $462.84, for a total value of $6,759,315.36. Following the completion of the transaction, the chief executive officer directly owned 76,865 shares in the company, valued at $35,576,196.60. The trade was a 15.97% decrease in their position. The transaction was disclosed in a document filed 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 24,641 shares of the stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $419.44, for a total transaction of $10,335,421.04. Following the sale, the insider directly owned 120,443 shares in the company, valued at $50,518,611.92. This trade represents a 16.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 117,163 shares of company stock worth $51,366,457 over the last 90 days. Company insiders own 0.56% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Elevation Wealth Partners LLC raised 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 acquiring an additional 27 shares in the last quarter. North Dakota State Investment Board boosted its holdings in Synopsys by 0.5% in the third quarter. North Dakota State Investment Board now owns 5,706 shares of the semiconductor company’s stock valued at $2,482,000 after purchasing an additional 29 shares during the period. Oak Grove Capital LLC boosted its holdings in Synopsys by 1.1% in the third quarter. Oak Grove Capital LLC now owns 2,898 shares of the semiconductor company’s stock valued at $1,260,000 after purchasing an additional 32 shares during the period. Kintegral Advisory LLC grew its stake in Synopsys by 0.6% during the 3rd quarter. Kintegral Advisory LLC now owns 5,812 shares of the semiconductor company’s stock worth $2,528,000 after purchasing an additional 32 shares in the last quarter. Finally, Personal CFO Solutions LLC grew its stake in Synopsys by 1.4% during the 1st quarter. Personal CFO Solutions LLC now owns 2,682 shares of the semiconductor company’s stock worth $1,063,000 after purchasing an additional 36 shares in the last quarter. Institutional investors and hedge funds own 85.47% of the company’s stock.

Synopsys Company Profile

Synopsys, Inc is an electronic design automation (EDA) and semiconductor intellectual property company serving the global semiconductor and electronics industries. Its software helps engineers design, verify, test and manufacture advanced integrated circuits and electronic systems.

The company’s products and services support digital and analog design, functional verification, design-for-test, manufacturing and semiconductor engineering workflows. Synopsys also provides reusable semiconductor IP, including processor cores, interface technologies, security solutions and other components used in system-on-chip designs.

In addition to its semiconductor design offerings, Synopsys provides software development and application security tools intended to help organizations identify and manage vulnerabilities and risks across the software development lifecycle.