Synopsys (NASDAQ:SNPS) Lowered to Hold Rating by HSBC

HSBC downgraded shares of Synopsys (NASDAQ:SNPS) from a buy rating to a hold rating in a research note released on Friday morning, Marketbeat.com reports. HSBC currently has $455.00 price objective on the semiconductor company’s stock.

SNPS has been the topic of several other research reports. Wall Street Zen raised Synopsys from a “sell” rating to a “hold” rating in a research note on Saturday, December 13th. KeyCorp lifted their price objective on shares of Synopsys from $575.00 to $600.00 and gave the company an “overweight” rating in a research note on Thursday, December 11th. Wells Fargo & Company upped their price objective on shares of Synopsys from $445.00 to $500.00 and gave the stock an “equal weight” rating in a report on Thursday, December 11th. Morgan Stanley increased their target price on shares of Synopsys from $510.00 to $550.00 and gave the company an “overweight” rating in a research report on Friday, December 12th. Finally, JPMorgan Chase & Co. raised their target price on shares of Synopsys from $600.00 to $650.00 and gave the company an “overweight” rating in a research note on Thursday, December 11th. Nine research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $547.00.

Synopsys Stock Performance

SNPS stock opened at $439.94 on Friday. The stock’s fifty day moving average is $474.06 and its two-hundred day moving average is $483.92. The stock has a market capitalization of $84.17 billion, a price-to-earnings ratio of 55.06, a PEG ratio of 3.68 and a beta of 1.12. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.52 and a current ratio of 1.62. Synopsys has a 1 year low of $365.74 and a 1 year high of $651.73.

Synopsys (NASDAQ:SNPS) last posted its earnings results on Wednesday, December 10th. The semiconductor company reported $2.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.79 by $0.11. The firm had revenue of $2.25 billion during the quarter, compared to analyst estimates of $2.25 billion. Synopsys had a net margin of 18.89% and a return on equity of 7.89%. Synopsys’s revenue was up 37.8% on a year-over-year basis. During the same period in the previous year, the business posted $3.40 EPS. Synopsys has set its FY 2026 guidance at 14.320-14.400 EPS and its Q1 2026 guidance at 3.520-3.580 EPS. On average, research analysts predict that Synopsys will post 10.64 EPS for the current year.

Insider Buying and Selling

In related news, CFO Shelagh Glaser sold 3,657 shares of the stock in a transaction that occurred on Friday, December 19th. The shares were sold at an average price of $460.77, for a total transaction of $1,685,035.89. Following the completion of the sale, the chief financial officer directly owned 17,842 shares of the company’s stock, valued at $8,221,058.34. This represents a 17.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Janet Lee sold 250 shares of the firm’s stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $530.00, for a total transaction of $132,500.00. Following the sale, the insider owned 11,959 shares of the company’s stock, valued at $6,338,270. The trade was a 2.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 4,157 shares of company stock worth $1,945,036 over the last quarter. Insiders own 0.62% of the company’s stock.

Hedge Funds Weigh In On Synopsys

Hedge funds have recently modified their holdings of the stock. Sunbelt Securities Inc. boosted its position in shares of Synopsys by 1,250.0% in the 4th quarter. Sunbelt Securities Inc. now owns 243 shares of the semiconductor company’s stock valued at $114,000 after purchasing an additional 225 shares during the period. Cambient Family Office LLC purchased a new position in shares of Synopsys in the fourth quarter worth approximately $3,294,000. Spinecap SAS acquired a new stake in shares of Synopsys during the fourth quarter valued at approximately $11,347,000. Axxcess Wealth Management LLC boosted its stake in Synopsys by 39.4% in the 4th quarter. Axxcess Wealth Management LLC now owns 4,581 shares of the semiconductor company’s stock worth $2,152,000 after purchasing an additional 1,295 shares during the period. Finally, Corient Private Wealth LLC raised its stake in Synopsys by 31.0% during the 4th quarter. Corient Private Wealth LLC now owns 35,155 shares of the semiconductor company’s stock valued at $16,513,000 after purchasing an additional 8,322 shares during the period. 85.47% of the stock is currently owned by institutional investors and hedge funds.

Key Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: NVIDIA added a large stake in Synopsys (reported ~4.8M shares, >$2.2B at end-Q4), highlighting strategic alignment between SNPS and AI/semiconductor leaders and lending a strong institutional vote of confidence. NVIDIA’s 13F Bombshell: A New AI Power Trio Emerges
• Positive Sentiment: Board refresh: Synopsys appointed former Deloitte executive Peter A. Shimer to the board and expanded the board as part of governance updates — adds deep financial and leadership experience that investors often view as supportive for oversight and capital allocation. Synopsys Appoints Former Deloitte Executive Peter Shimer to Board of Directors and Announces Board Transitions
• Positive Sentiment: Partnership expansion: Synopsys deepened its AI design and security capabilities via a SimuTech partnership, which could broaden product adoption in AI-focused chip design workflows. Synopsys Deepens AI Design And Security Reach With SimuTech Partnership
• Neutral Sentiment: Analysts and earnings watch: Multiple previews (Zacks/Yahoo) flag Q1 results as a near-term catalyst — key metrics vs. guidance will likely drive short-term volatility around the report. Synopsys (SNPS) Q1 Earnings on the Horizon: Analysts’ Insights on Key Performance Measures
• Neutral Sentiment: Mixed investor reaction coverage discusses AI-disruption fears, chiplet competition and the Ansys deal — narrative is mixed and could add noise to sentiment without a single clear directional effect. How Investors Are Reacting To Synopsys (SNPS) AI Disruption Fears Amid Chiplet Push And Ansys Deal
• Negative Sentiment: HSBC downgraded SNPS from Buy to Hold and set a $455 price target, a move that can weigh on sentiment and selling pressure even though the PT still implies modest upside. SNPS: HSBC downgrades

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.