Synopsys (NASDAQ:SNPS) Stock Gets Price Target Boost from Morgan Stanley

Synopsys (NASDAQ:SNPS) had its target price upped by stock analysts at Morgan Stanley from $500.00 to $574.00 in a note issued to investors on Tuesday, Benzinga reports. The firm currently has an “overweight” rating on the semiconductor company’s stock. Morgan Stanley’s price objective indicates a potential upside of 28.33% from the stock’s current price.

SNPS has been the topic of several other research reports. Wells Fargo & Company increased their target price on shares of Synopsys from $475.00 to $540.00 and gave the company an “overweight” rating in a report on Thursday, October 1st. Robert W. Baird raised shares of Synopsys from a “neutral” rating to an “outperform” rating and boosted their price target for the stock from $558.00 to $560.00 in a research note on Thursday, August 27th. BNP Paribas Exane upped their price target on shares of Synopsys from $420.00 to $475.00 and gave the company a “neutral” rating in a research report on Thursday, October 1st. Roth Capital upgraded shares of Synopsys to a “buy” rating in a research report on Friday, September 25th. Finally, Rothschild & Co Redburn reduced their price objective on Synopsys from $560.00 to $550.00 and set a “buy” rating on the stock in a research note on Wednesday, September 23rd. One research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $575.00.

Synopsys Price Performance

SNPS traded down $7.29 during midday trading on Tuesday, hitting $447.29. The stock had a trading volume of 737,607 shares, compared to its average volume of 2,051,401. The company has a market cap of $85.72 billion, a P/E ratio of 79.05, a price-to-earnings-growth ratio of 1.85 and a beta of 1.21. The business has a fifty day moving average of $428.42 and a 200 day moving average of $442.33. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34. Synopsys has a 1 year low of $362.55 and a 1 year high of $539.48.

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

Synopsys announced that its Board of Directors has initiated a share repurchase program on Monday, October 5th that permits the company to buy back $1.00 billion in outstanding shares. This repurchase authorization permits the semiconductor company to reacquire up to 1.1% of its stock through open market purchases. Share repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

Insider Activity

In other news, 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 transaction of $4,585,000.00. Following the completion of the sale, 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Janet Lee sold 1,144 shares of the firm’s stock in a transaction dated Tuesday, October 6th. The stock was sold at an average price of $502.52, for a total value of $574,882.88. Following the completion of the sale, the insider directly owned 16,534 shares in the company, valued at $8,308,665.68. The trade was a 6.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 117,163 shares of company stock valued at $51,366,457. 0.56% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Synopsys

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. purchased a new stake in Synopsys during the 2nd quarter valued at approximately $7,228,099,000. Van ECK Associates Corp lifted its holdings in shares of Synopsys by 19.7% in the second quarter. Van ECK Associates Corp now owns 3,457,249 shares of the semiconductor company’s stock worth $1,542,175,000 after buying an additional 569,687 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Synopsys by 40.7% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,087,349 shares of the semiconductor company’s stock worth $1,377,174,000 after acquiring an additional 892,736 shares during the last quarter. Assenagon Asset Management S.A. boosted its position in shares of Synopsys by 11.2% during the third quarter. Assenagon Asset Management S.A. now owns 2,729,988 shares of the semiconductor company’s stock worth $1,187,381,000 after acquiring an additional 274,586 shares during the last quarter. Finally, Amundi grew its stake in Synopsys by 3.6% during the first quarter. Amundi now owns 1,761,983 shares of the semiconductor company’s stock valued at $698,591,000 after acquiring an additional 61,077 shares in the last quarter. Institutional investors own 85.47% of the company’s stock.

About Synopsys

Synopsys, Inc is an electronic design automation (EDA) and semiconductor intellectual property company serving the global semiconductor and electronics industries. Its software helps engineers design, verify, test and manufacture advanced integrated circuits and electronic systems.

The company’s products and services support digital and analog design, functional verification, design-for-test, manufacturing and semiconductor engineering workflows. Synopsys also provides reusable semiconductor IP, including processor cores, interface technologies, security solutions and other components used in system-on-chip designs.

In addition to its semiconductor design offerings, Synopsys provides software development and application security tools intended to help organizations identify and manage vulnerabilities and risks across the software development lifecycle.