Benchmark Upgrades Synopsys (NASDAQ:SNPS) to Strong-Buy

Synopsys (NASDAQ:SNPS) was upgraded by analysts at Benchmark to a “strong-buy” rating in a note issued to investors on Wednesday,Zacks.com reports.

Several other research analysts have also recently weighed in on the company. Wells Fargo & Company upped their price objective on Synopsys from $505.00 to $535.00 and gave the stock an “equal weight” rating in a research report on Thursday, May 28th. Berenberg Bank set a $633.00 target price on Synopsys in a research note on Wednesday, May 27th. BNP Paribas Exane upped their price target on Synopsys from $425.00 to $450.00 and gave the stock an “underperform” rating in a research report on Thursday, May 28th. Robert W. Baird set a $558.00 price target on shares of Synopsys in a research note on Thursday, May 28th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Synopsys in a report on Monday, June 8th. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $570.06.

Synopsys Trading Down 1.9%

Shares of NASDAQ:SNPS opened at $417.03 on Wednesday. The firm has a market cap of $79.85 billion, a price-to-earnings ratio of 96.53, a PEG ratio of 2.50 and a beta of 1.22. Synopsys has a 12 month low of $376.18 and a 12 month high of $651.73. The company’s fifty day simple moving average is $471.95 and its 200 day simple moving average is $459.14. The company has a quick ratio of 1.32, a current ratio of 1.43 and a debt-to-equity ratio of 0.33.

Synopsys (NASDAQ:SNPS) last announced its earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share for the quarter, topping analysts’ consensus estimates of $3.15 by $0.20. The firm had revenue of $2.28 billion during the quarter, compared to analyst estimates of $2.25 billion. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. The company’s revenue for the quarter was up 41.9% compared to the same quarter last year. During the same period in the prior year, the business earned $3.67 EPS. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. As a group, research analysts forecast that Synopsys will post 10.65 EPS for the current fiscal year.

Insider Activity at Synopsys

In other Synopsys news, CFO Shelagh Glaser sold 3,394 shares of the business’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 transaction, the chief financial officer owned 14,358 shares of the company’s stock, valued at $6,461,387.16. The trade was a 19.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $458.96, for a total value of $6,702,192.88. Following the sale, the chief executive officer owned 75,020 shares in the company, valued at approximately $34,431,179.20. This represents a 16.29% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 Investors Weigh In On Synopsys

Several large investors have recently made changes to their positions in SNPS. Norges Bank acquired a new position in Synopsys during the fourth quarter worth $730,197,000. State Street Corp lifted its stake in Synopsys by 20.6% in the third quarter. State Street Corp now owns 8,760,358 shares of the semiconductor company’s stock valued at $4,322,273,000 after acquiring an additional 1,493,912 shares during the last quarter. Farallon Capital Management LLC acquired a new stake in Synopsys in the fourth quarter valued at $469,344,000. Assenagon Asset Management S.A. grew its position in shares of Synopsys by 390.6% in the 4th quarter. Assenagon Asset Management S.A. now owns 1,186,879 shares of the semiconductor company’s stock valued at $557,501,000 after acquiring an additional 944,973 shares during the period. Finally, Primecap Management Co. CA grew its position in shares of Synopsys by 743.6% in the 4th quarter. Primecap Management Co. CA now owns 734,800 shares of the semiconductor company’s stock valued at $345,150,000 after acquiring an additional 647,700 shares during the period. Institutional investors and hedge funds own 85.47% of the company’s stock.

Key Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Benchmark initiated coverage of Synopsys with a Buy rating, saying the company should benefit from rising AI demand, growing semiconductor design complexity, and solid long-term fundamentals. Benchmark initiates Synopsys, Cadence with Buy ratings on AI-driven EDA outlook
• Positive Sentiment: Recent commentary highlighted Synopsys as a key beneficiary of the AI chip-design boom, including the broader shortage of skilled chip-design engineers, which supports demand for EDA software. Chip design software dubbed a $3.7 billion opportunity: 2 stocks poised to benefit
• Positive Sentiment: Investors are still focused on Synopsys’ strategy to double down on higher-margin AI chip-design software, which could strengthen its competitive position over time. Why Synopsys (SNPS) Is Doubling Down on AI Chip Design Software to Strengthen Its Long-Term Competitive Advantage
• Neutral Sentiment: Synopsys is drawing heavy investor attention and remains a closely watched name, but this reflects interest rather than a clear new catalyst. Synopsys, Inc. (SNPS) is Attracting Investor Attention: Here is What You Should Know
• Negative Sentiment: SNPS has recently underperformed the broader market and some semiconductor peers, with traders appearing cautious despite the favorable AI narrative. Synopsys (SNPS) Dips More Than Broader Market: What You Should Know
• Negative Sentiment: Market comparison pieces also noted Synopsys has lagged competitors recently, suggesting some investor rotation away from the stock. Synopsys Inc. stock underperforms Tuesday when compared to competitors

Synopsys Company Profile

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.