Synopsys, Inc. (NASDAQ:SNPS) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of Synopsys, Inc. (NASDAQ:SNPS) have received an average recommendation of “Moderate Buy” from the eighteen research firms that are covering the firm, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, five have issued a hold recommendation, ten have issued a buy recommendation and two have assigned a strong buy recommendation to the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $570.0588.

A number of equities analysts recently weighed in on the company. Wells Fargo & Company upped their price target on Synopsys from $505.00 to $535.00 and gave the stock an “equal weight” rating in a report on Thursday, May 28th. Bank of America increased their target price on Synopsys from $515.00 to $600.00 and gave the company a “buy” rating in a research report on Thursday, May 28th. Berenberg Bank set a $633.00 price objective on shares of Synopsys in a research report on Wednesday, May 27th. Rosenblatt Securities upped their price target on shares of Synopsys from $530.00 to $575.00 and gave the stock a “buy” rating in a research report on Tuesday, May 26th. Finally, Benchmark started coverage on Synopsys in a report on Wednesday, July 15th. They issued a “buy” rating and a $570.00 price objective on the stock.

Insider Activity at Synopsys

In related news, CEO Sassine Ghazi sold 14,603 shares of the company’s stock in a transaction dated 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 completion of the sale, the chief executive officer owned 75,020 shares of the company’s stock, valued at approximately $34,431,179.20. This represents a 16.29% decrease in their position. The sale 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Shelagh Glaser sold 3,394 shares of the firm’s stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the completion of the transaction, the chief financial officer directly owned 14,358 shares in the company, valued at $6,461,387.16. This trade represents a 19.12% 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. 0.56% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Synopsys

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Sowell Financial Services LLC raised its holdings in shares of Synopsys by 2.0% in the 4th quarter. Sowell Financial Services LLC now owns 1,056 shares of the semiconductor company’s stock valued at $496,000 after buying an additional 21 shares during the period. Natural Investments LLC increased its stake in Synopsys by 4.6% during the fourth quarter. Natural Investments LLC now owns 482 shares of the semiconductor company’s stock worth $226,000 after purchasing an additional 21 shares during the period. Financial Management Professionals Inc. lifted its position in shares of Synopsys by 7.0% during the fourth quarter. Financial Management Professionals Inc. now owns 335 shares of the semiconductor company’s stock worth $157,000 after purchasing an additional 22 shares in the last quarter. Foronjy Financial LLC lifted its position in shares of Synopsys by 5.2% during the fourth quarter. Foronjy Financial LLC now owns 446 shares of the semiconductor company’s stock worth $210,000 after purchasing an additional 22 shares in the last quarter. Finally, AGH Wealth Advisors LLC boosted 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 purchasing an additional 24 shares during the period. 85.47% of the stock is currently owned by institutional investors and hedge funds.

Synopsys Price Performance

Shares of NASDAQ SNPS opened at $400.82 on Thursday. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.43 and a quick ratio of 1.32. The stock has a market capitalization of $76.75 billion, a price-to-earnings ratio of 92.78, a PEG ratio of 2.37 and a beta of 1.23. The firm’s 50 day simple moving average is $436.11 and its 200-day simple moving average is $447.78. Synopsys has a 12 month low of $366.00 and a 12 month high of $632.99.

Synopsys (NASDAQ:SNPS) last released its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share for the quarter, beating analysts’ consensus estimates of $3.15 by $0.20. The company had revenue of $2.28 billion during the quarter, compared to analysts’ expectations of $2.25 billion. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. During the same quarter in the previous year, the company earned $3.67 earnings per share. The firm’s revenue for the quarter was up 41.9% on a year-over-year basis. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. Analysts expect that Synopsys will post 10.65 EPS for the current year.

About Synopsys

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.