Zacks Investment Research lowered shares of Synopsys, Inc. (NASDAQ:SNPS) from a buy rating to a hold rating in a research note published on Monday.

According to Zacks, “Synopsys is a vendor of electronic design automation (EDA) software to the semiconductor and electronics industries. Shares of Synopsys has outperformed the industry over the past one year. Synopsys recently completed the buyout of a privately-held self-funded company, QuantumWise. We believe that the company’s sustained focus on introducing new products, acquisitions and deal wins will continue to boost results, going ahead. Moreover, unique intellectual properties and global support provided by the company will likely drive its forthcoming results. Furthermore, Synopsys’ strategy to return wealth to shareholders highlights its growth potential and stable liquidity position. However, competition from peers, a challenging technology spending environment and uncertainty regarding the exact time of realizing acquisition synergies keep us on the side-lines.”

Other analysts have also recently issued reports about the company. HSBC Holdings plc restated an average rating on shares of Synopsys in a research report on Thursday, September 14th. Needham & Company LLC restated a buy rating and set a $83.00 price objective (up from $77.00) on shares of Synopsys in a research report on Thursday, August 17th. BidaskClub cut Synopsys from a strong-buy rating to a buy rating in a research report on Wednesday, July 5th. Credit Suisse Group restated an outperform rating on shares of Synopsys in a research report on Thursday, August 31st. Finally, Royal Bank Of Canada boosted their price objective on Synopsys from $85.00 to $90.00 and gave the company an outperform rating in a research report on Thursday, August 17th. Three research analysts have rated the stock with a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Synopsys currently has a consensus rating of Buy and a consensus price target of $84.00.

Synopsys (NASDAQ SNPS) opened at 81.89 on Monday. The company’s 50-day moving average price is $79.63 and its 200 day moving average price is $75.41. Synopsys has a 52 week low of $56.03 and a 52 week high of $81.93. The company has a market capitalization of $12.30 billion, a PE ratio of 38.45 and a beta of 1.00.

Synopsys (NASDAQ:SNPS) last released its quarterly earnings data on Wednesday, August 16th. The semiconductor company reported $0.92 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.92. The business had revenue of $695.40 million for the quarter, compared to analysts’ expectations of $691.22 million. Synopsys had a return on equity of 11.60% and a net margin of 12.37%. Synopsys’s quarterly revenue was up 13.0% on a year-over-year basis. During the same period in the previous year, the business posted $0.76 earnings per share. On average, equities research analysts anticipate that Synopsys will post $3.31 EPS for the current year.

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Synopsys announced that its Board of Directors has approved a stock buyback plan on Friday, June 16th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the semiconductor company to reacquire up to 4.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

In related news, CEO Chi-Foon Chan sold 3,750 shares of the business’s stock in a transaction on Friday, August 18th. The stock was sold at an average price of $77.50, for a total value of $290,625.00. Following the sale, the chief executive officer now owns 200,429 shares of the company’s stock, valued at approximately $15,533,247.50. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Joseph W. Logan sold 5,000 shares of the business’s stock in a transaction on Friday, August 18th. The shares were sold at an average price of $76.99, for a total value of $384,950.00. Following the completion of the sale, the executive vice president now directly owns 63,793 shares in the company, valued at approximately $4,911,423.07. The disclosure for this sale can be found here. 1.82% of the stock is owned by insiders.

Hedge funds have recently made changes to their positions in the stock. Bronfman E.L. Rothschild L.P. boosted its stake in Synopsys by 11.9% in the 2nd quarter. Bronfman E.L. Rothschild L.P. now owns 1,382 shares of the semiconductor company’s stock valued at $101,000 after buying an additional 147 shares in the last quarter. IFP Advisors Inc boosted its stake in Synopsys by 40.4% in the second quarter. IFP Advisors Inc now owns 1,441 shares of the semiconductor company’s stock worth $105,000 after purchasing an additional 415 shares in the last quarter. YorkBridge Wealth Partners LLC boosted its stake in Synopsys by 3.7% in the second quarter. YorkBridge Wealth Partners LLC now owns 1,542 shares of the semiconductor company’s stock worth $111,000 after purchasing an additional 55 shares in the last quarter. OLD Mutual Customised Solutions Proprietary Ltd. boosted its stake in Synopsys by 101.5% in the first quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 2,216 shares of the semiconductor company’s stock worth $160,000 after purchasing an additional 1,116 shares in the last quarter. Finally, SRS Capital Advisors Inc. boosted its stake in Synopsys by 14.4% in the first quarter. SRS Capital Advisors Inc. now owns 2,226 shares of the semiconductor company’s stock worth $160,000 after purchasing an additional 281 shares in the last quarter. 88.94% of the stock is currently owned by institutional investors and hedge funds.

About Synopsys

Synopsys, Inc provides software, intellectual property (IP) and services. The Company supplies the electronic design automation (EDA) software that engineers use to design and test integrated circuits, also known as chips. It also offers IP products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves.

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