Synopsys (NASDAQ:SNPS) Cut to “Hold” at HSBC

Synopsys (NASDAQ:SNPS) was downgraded by equities research analysts at HSBC from a “buy” rating to a “hold” rating in a note issued to investors on Friday. They currently have a $455.00 target price on the semiconductor company’s stock. HSBC’s price target would suggest a potential upside of 2.56% from the stock’s current price.

Other research analysts have also issued research reports about the company. Zacks Research upgraded Synopsys from a “strong sell” rating to a “hold” rating in a research report on Monday, November 10th. Wells Fargo & Company increased their price objective on shares of Synopsys from $445.00 to $500.00 and gave the company an “equal weight” rating in a report on Thursday, December 11th. JPMorgan Chase & Co. boosted their target price on shares of Synopsys from $600.00 to $650.00 and gave the stock an “overweight” rating in a research note on Thursday, December 11th. Rosenblatt Securities restated a “buy” rating and set a $560.00 price target on shares of Synopsys in a research report on Friday. Finally, Piper Sandler lowered shares of Synopsys from an “overweight” rating to a “neutral” rating and decreased their price target for the company from $602.00 to $520.00 in a research note on Tuesday, January 13th. Nine research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $547.00.

Synopsys Price Performance

Shares of Synopsys stock traded up $1.22 during trading hours on Friday, reaching $443.66. The stock had a trading volume of 143,058 shares, compared to its average volume of 2,124,058. The stock’s 50 day moving average is $474.32 and its 200 day moving average is $485.28. The company has a current ratio of 1.62, a quick ratio of 1.52 and a debt-to-equity ratio of 0.48. Synopsys has a twelve month low of $365.74 and a twelve month high of $651.73. The firm has a market capitalization of $84.88 billion, a PE ratio of 55.75, a PEG ratio of 3.68 and a beta of 1.12.

Synopsys (NASDAQ:SNPS) last posted its earnings results on Wednesday, December 10th. The semiconductor company reported $2.90 EPS for the quarter, beating analysts’ consensus estimates of $2.79 by $0.11. The firm had revenue of $2.25 billion for the quarter, compared to analysts’ expectations of $2.25 billion. Synopsys had a return on equity of 7.89% and a net margin of 18.89%.The company’s quarterly revenue was up 37.8% on a year-over-year basis. During the same period last year, the firm earned $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. Equities analysts expect that Synopsys will post 10.64 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Synopsys news, insider Janet Lee sold 250 shares of the company’s stock in a transaction on Monday, January 12th. The stock was sold at an average price of $530.00, for a total value of $132,500.00. Following the completion of the sale, the insider directly owned 11,959 shares in the company, valued at $6,338,270. This represents a 2.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Shelagh Glaser sold 3,657 shares of Synopsys stock in a transaction on Friday, December 19th. The stock was sold at an average price of $460.77, for a total value of $1,685,035.89. Following the transaction, the chief financial officer owned 17,842 shares in the company, valued at approximately $8,221,058.34. This represents a 17.01% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 4,157 shares of company stock worth $1,945,036 in the last three months. 0.62% of the stock is currently owned by corporate insiders.

Institutional Trading of Synopsys

Several institutional investors have recently made changes to their positions in SNPS. Spinecap SAS purchased a new position in shares of Synopsys during the fourth quarter worth $11,347,000. Axxcess Wealth Management LLC increased its stake in Synopsys by 39.4% during the fourth 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. Corient Private Wealth LLC lifted its position in shares of Synopsys by 31.0% during the fourth quarter. Corient Private Wealth LLC now owns 35,155 shares of the semiconductor company’s stock worth $16,513,000 after purchasing an additional 8,322 shares in the last quarter. Mercer Global Advisors Inc. ADV boosted its stake in shares of Synopsys by 1.3% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 7,534 shares of the semiconductor company’s stock valued at $3,539,000 after purchasing an additional 96 shares during the period. Finally, Vident Advisory LLC grew its holdings in shares of Synopsys by 35.6% in the fourth quarter. Vident Advisory LLC now owns 36,721 shares of the semiconductor company’s stock valued at $17,249,000 after purchasing an additional 9,633 shares in the last quarter. Hedge funds and other institutional investors own 85.47% of the company’s stock.

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.