Synopsys (NASDAQ:SNPS) Rating Increased to Strong-Buy at Zacks Research

Synopsys (NASDAQ:SNPS) was upgraded by stock analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued on Tuesday,Zacks.com reports.

Other research analysts have also issued reports about the company. KeyCorp reiterated an “overweight” rating on shares of Synopsys in a report on Thursday, May 28th. Stifel Nicolaus increased their price objective on shares of Synopsys from $550.00 to $600.00 and gave the stock a “buy” rating in a research report on Thursday, May 28th. Wells Fargo & Company lifted their price target on Synopsys from $505.00 to $535.00 and gave the company an “equal weight” rating in a research note on Thursday, May 28th. Piper Sandler raised Synopsys from a “neutral” rating to an “overweight” rating and upped their price objective for the stock from $450.00 to $550.00 in a research report on Tuesday, June 23rd. Finally, Rosenblatt Securities lifted their target price on Synopsys from $530.00 to $575.00 and gave the company a “buy” rating in a research report on Tuesday, May 26th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $570.06.

Synopsys Trading Up 1.9%

Shares of NASDAQ SNPS opened at $454.53 on Tuesday. The company’s 50 day simple moving average is $483.60 and its 200 day simple moving average is $461.62. The firm has a market capitalization of $87.03 billion, a P/E ratio of 105.22, a P/E/G ratio of 2.62 and a beta of 1.22. Synopsys has a fifty-two week low of $376.18 and a fifty-two week high of $651.73. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.43 and a quick ratio of 1.32.

Synopsys (NASDAQ:SNPS) last posted its quarterly earnings results 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. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The company had revenue of $2.28 billion for the quarter, compared to the consensus estimate of $2.25 billion. During the same quarter in the prior year, the business posted $3.67 EPS. The firm’s quarterly revenue 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. On average, analysts predict that Synopsys will post 10.65 EPS for the current year.

Insider Activity at Synopsys

In other news, CFO Shelagh Glaser sold 3,394 shares of the stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $450.02, for a total value of $1,527,367.88. Following the completion of the sale, the chief financial officer owned 14,358 shares of the company’s stock, valued at approximately $6,461,387.16. This represents a 19.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the firm’s stock in a transaction on 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 transaction, the chief executive officer directly owned 75,020 shares of the company’s stock, valued at $34,431,179.20. This represents a 16.29% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 0.56% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Brighton Jones LLC grew its holdings in Synopsys by 5.7% during the fourth quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company’s stock worth $447,000 after purchasing an additional 50 shares during the period. Integrated Wealth Concepts LLC raised its stake in Synopsys by 11.6% in the first quarter. Integrated Wealth Concepts LLC now owns 760 shares of the semiconductor company’s stock valued at $326,000 after buying an additional 79 shares during the period. NewEdge Advisors LLC raised its stake in Synopsys by 15.1% in the first quarter. NewEdge Advisors LLC now owns 3,010 shares of the semiconductor company’s stock valued at $1,291,000 after buying an additional 395 shares during the period. WINTON GROUP Ltd lifted its position in shares of Synopsys by 9.2% in the second quarter. WINTON GROUP Ltd now owns 758 shares of the semiconductor company’s stock valued at $389,000 after buying an additional 64 shares during the last quarter. Finally, Treasurer of the State of North Carolina lifted its position in shares of Synopsys by 2.1% in the second quarter. Treasurer of the State of North Carolina now owns 72,095 shares of the semiconductor company’s stock valued at $36,962,000 after buying an additional 1,505 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 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.