Synopsys, Inc. (NASDAQ:SNPS) Receives Average Rating of “Moderate Buy” from Analysts

Shares of Synopsys, Inc. (NASDAQ:SNPS) have been assigned a consensus recommendation of “Moderate Buy” from the eighteen analysts that are presently covering the firm, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, five have given a hold recommendation, ten have given a buy recommendation and two have given a strong buy recommendation to the company. The average twelve-month target price among analysts that have issued ratings on the stock in the last year is $570.0588.

SNPS has been the subject of several research analyst reports. Morgan Stanley increased their price objective on Synopsys from $480.00 to $525.00 and gave the stock an “equal weight” rating in a research note on Thursday, May 28th. Benchmark initiated coverage on Synopsys in a report on Wednesday. They issued a “buy” rating and a $570.00 target price on the stock. KeyCorp reissued an “overweight” rating on shares of Synopsys in a research report on Thursday, May 28th. BNP Paribas Exane raised their price target on shares of Synopsys from $425.00 to $450.00 and gave the stock an “underperform” rating in a report on Thursday, May 28th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $580.00 price objective on shares of Synopsys in a research report on Thursday, May 28th.

Synopsys Price Performance

Shares of NASDAQ:SNPS opened at $384.27 on Friday. The company’s fifty day moving average is $469.31 and its two-hundred day moving average is $458.62. The company has a market cap of $73.58 billion, a P/E ratio of 88.95, a price-to-earnings-growth ratio of 2.26 and a beta of 1.22. Synopsys has a 12-month low of $366.00 and a 12-month high of $651.73. 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 issued its earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, topping the consensus estimate of $3.15 by $0.20. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The business had revenue of $2.28 billion during the quarter, compared to analysts’ expectations of $2.25 billion. During the same quarter last year, the firm posted $3.67 earnings per share. Synopsys’s revenue was up 41.9% compared to the same quarter last year. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. Equities analysts expect that Synopsys will post 10.65 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Shelagh Glaser sold 3,394 shares of the company’s stock in a transaction on Friday, June 12th. The shares were sold at an average price of $450.02, for a total value of $1,527,367.88. Following the transaction, the chief financial officer directly owned 14,358 shares of the company’s stock, valued at approximately $6,461,387.16. This represents a 19.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed 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 stock in a transaction 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 of the company’s stock, valued at approximately $34,431,179.20. This represents a 16.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Company insiders own 0.56% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Sankala Group LLC bought a new stake in Synopsys in the fourth quarter worth approximately $25,000. Elevation Wealth Partners LLC increased its position in Synopsys by 96.4% during the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock worth $25,000 after buying an additional 27 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. acquired a new position in Synopsys during the fourth quarter worth $28,000. Caitong International Asset Management Co. Ltd bought a new position in Synopsys during the fourth quarter valued at about $28,000. Finally, Atlas Capital Advisors Inc. bought a new position in Synopsys during the fourth quarter valued at about $32,000. Hedge funds and other institutional investors own 85.47% of the company’s stock.

Synopsys News Summary

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Benchmark upgraded Synopsys (SNPS) to strong-buy, reinforcing a bullish long-term view on AI-driven demand for electronic design automation software. Zacks.com
• Positive Sentiment: Synopsys continues to have strong analyst support overall, with brokerage ratings averaging Moderate Buy and several recent price targets well above the current share price. American Banking News
• Neutral Sentiment: New commentary suggests the recent pullback may be a “buy the dip” opportunity, but that view is still based on technical support levels rather than a new fundamental catalyst. Trefis
• Negative Sentiment: SNPS is falling alongside a broader chip and tech selloff, which is weighing on sentiment across the semiconductor group. Benzinga
• Negative Sentiment: Investors are also worried about muted growth in Synopsys’s Design IP business and export-control headwinds, which may be limiting enthusiasm despite the earnings beat. Quiver Quantitative

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.