Synopsys (NASDAQ:SNPS) CFO Sells $4,585,000.00 in Stock

Synopsys, Inc. (NASDAQ:SNPS) CFO Sudhindra Kankanwadi sold 9,170 shares of the stock in a transaction dated 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 transaction, the chief financial officer directly owned 22,717 shares in the company, valued at approximately $11,358,500. This represents a 28.76% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website.

Sudhindra Kankanwadi also recently made the following trade(s):

• On Monday, October 5th, Sudhindra Kankanwadi sold 3,000 shares of Synopsys stock. The stock was sold at an average price of $484.78, for a total transaction of $1,454,340.00.

Synopsys Stock Performance

NASDAQ:SNPS traded up $16.70 during midday trading on Tuesday, reaching $505.17. The stock had a trading volume of 2,737,287 shares, compared to its average volume of 2,364,103. The stock has a market capitalization of $96.81 billion, a P/E ratio of 89.25, a PEG ratio of 1.99 and a beta of 1.21. Synopsys, Inc. has a 1-year low of $362.55 and a 1-year high of $539.48. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.34 and a quick ratio of 1.24. The firm’s fifty day simple moving average is $412.43 and its 200-day simple moving average is $437.43.

Synopsys (NASDAQ:SNPS) last posted its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, topping the consensus estimate of $3.67 by $0.24. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The business had revenue of $2.48 billion during the quarter, compared to analysts’ expectations of $2.44 billion. During the same quarter in the previous year, the firm earned $3.39 EPS. The firm’s revenue was up 42.4% compared to the same quarter last year. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. On average, equities research analysts forecast that Synopsys, Inc. will post 10.97 EPS for the current fiscal year.

Synopsys announced that its board has authorized a share repurchase plan on Monday, October 5th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor company to purchase up to 1.1% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Byrne Asset Management LLC grew its holdings in Synopsys by 10,693.3% during the third quarter. Byrne Asset Management LLC now owns 1,619 shares of the semiconductor company’s stock valued at $704,000 after purchasing an additional 1,604 shares during the period. Rockland Trust Co. acquired a new stake in Synopsys during the 3rd quarter worth approximately $244,000. Polaris Financial Partners bought a new position in Synopsys in the third quarter valued at approximately $41,000. Sequoia Financial Advisors LLC boosted its holdings in shares of Synopsys by 19.0% in the second quarter. Sequoia Financial Advisors LLC now owns 14,866 shares of the semiconductor company’s stock valued at $6,631,000 after buying an additional 2,377 shares during the period. Finally, Gemmer Asset Management LLC bought a new stake in shares of Synopsys during the second quarter worth $224,000. Institutional investors and hedge funds own 85.47% of the company’s stock.

Synopsys News Roundup

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys announced new AI chip-design alliances with OpenAI and Amazon, reinforcing its position as a supplier of electronic-design-automation tools for the growing AI infrastructure market. The expanded Amazon relationship is described as a potential $1 billion catalyst. Synopsys Is Up 17.7% After New AI Chip-Design Alliances With OpenAI And Amazon
• Positive Sentiment: Synopsys initiated an accelerated share-repurchase agreement with JPMorgan to buy back approximately $1 billion of stock, equal to as much as 1.1% of outstanding shares. The program may support earnings per share and signals management’s confidence in the company’s long-term value. Synopsys Initiates $1 Billion Accelerated Share Repurchase Agreement
• Neutral Sentiment: A valuation comparison with Progress Software examines whether SNPS offers better value among computer-software stocks. The discussion is relevant because Synopsys has strong AI-growth exposure, but investors must weigh that opportunity against its premium valuation. PRGS vs. SNPS: Which Stock Should Value Investors Buy Now?
• Negative Sentiment: Despite beating earnings estimates three times this year, Synopsys has reportedly seen its shares decline after each earnings release. The recurring pattern suggests investors may continue to sell the stock on strong results if expectations are already high. Synopsys is Hot Again But a Pattern Has Emerged

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Mizuho reduced their price target on shares of Synopsys from $600.00 to $550.00 and set an “outperform” rating on the stock in a research report on Thursday, August 27th. Rosenblatt Securities increased their price target on Synopsys from $575.00 to $620.00 and gave the stock a “buy” rating in a research report on Thursday, October 1st. Barclays began coverage on Synopsys in a research report on Friday, September 25th. They issued an “overweight” rating for the company. Benchmark reissued a “buy” rating and issued a $570.00 price objective on shares of Synopsys in a research note on Thursday, August 27th. Finally, Piper Sandler upgraded Synopsys from a “neutral” rating to an “overweight” rating and increased their target price for the stock from $450.00 to $550.00 in a report on Tuesday, June 23rd. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Synopsys currently has a consensus rating of “Moderate Buy” and an average price target of $584.11.

About Synopsys

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.