Synopsys Inc. (NASDAQ:SNPS) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a report issued on Tuesday. The brokerage presently has a $69.00 target price on the stock. Zacks Investment Research’s target price would suggest a potential upside of 15.48% from the company’s previous close.
According to Zacks, “Synopsys offers electronic design automation (EDA) software to the semiconductor and electronics industries. Estimates for the company have not moved around much of late. We are positive that the company’s recent product launches, acquisitions and deal wins will boost results, going forward. Moreover, the unique intellectual properties and global support provided by Synopsys will likely drive forthcoming results. The company has a good cash reserve that is necessary for funding further acquisitions. Additionally, the company’s acquisitions such as Gold Standard Simulations, Simpleware and Coverity will expand its capabilities as well as customer base. Furthermore, we believe the company’s aggressive share buyback policy will further boost investors’ confidence, thereby driving up the stock price, going forward.”
A number of other analysts have also commented on SNPS. DA Davidson boosted their price target on Synopsys from $60.00 to $64.00 and gave the company a “buy” rating in a report on Thursday, August 18th. Needham & Company LLC boosted their price target on Synopsys from $54.00 to $60.00 and gave the company a “buy” rating in a report on Thursday, August 18th. Benchmark Co. boosted their price target on Synopsys from $50.00 to $60.00 and gave the company a “hold” rating in a report on Thursday, August 18th. Pacific Crest upped their target price on Synopsys from $60.00 to $64.00 and gave the stock an “overweight” rating in a report on Thursday, August 18th. Finally, KeyCorp upped their target price on Synopsys from $60.00 to $64.00 and gave the stock an “overweight” rating in a report on Thursday, August 18th. Two research analysts have rated the stock with a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and a consensus price target of $63.67.
Shares of Synopsys (NASDAQ:SNPS) opened at 59.75 on Tuesday. The company has a market cap of $9.04 billion, a P/E ratio of 38.11 and a beta of 0.89. Synopsys has a 12 month low of $39.26 and a 12 month high of $61.36. The firm has a 50 day moving average price of $59.22 and a 200-day moving average price of $53.94.
Synopsys (NASDAQ:SNPS) last issued its quarterly earnings results on Wednesday, August 17th. The company reported $0.76 EPS for the quarter, beating analysts’ consensus estimates of $0.74 by $0.02. The company had revenue of $615.20 million for the quarter, compared to analyst estimates of $602.89 million. Synopsys had a return on equity of 12.15% and a net margin of 10.27%. The company’s quarterly revenue was up 10.7% compared to the same quarter last year. During the same period in the previous year, the company posted $0.63 earnings per share. Analysts anticipate that Synopsys will post $3.02 earnings per share for the current fiscal year.
In other Synopsys news, Chairman Geus Aart De sold 306,000 shares of the business’s stock in a transaction that occurred on Friday, August 19th. The stock was sold at an average price of $58.39, for a total transaction of $17,867,340.00. Following the transaction, the chairman now owns 159,791 shares of the company’s stock, valued at $9,330,196.49. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, VP Sudhindra Kankanwadi sold 3,409 shares of the business’s stock in a transaction that occurred on Monday, August 22nd. The stock was sold at an average price of $58.55, for a total value of $199,596.95. Following the transaction, the vice president now directly owns 4,148 shares in the company, valued at approximately $242,865.40. The disclosure for this sale can be found here. Company insiders own 1.62% of the company’s stock.
A number of institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its position in shares of Synopsys by 2.9% in the second quarter. Vanguard Group Inc. now owns 11,522,670 shares of the company’s stock worth $623,146,000 after buying an additional 322,407 shares during the period. BlackRock Fund Advisors increased its position in shares of Synopsys by 8.5% in the second quarter. BlackRock Fund Advisors now owns 8,114,931 shares of the company’s stock worth $438,855,000 after buying an additional 638,798 shares during the period. State Street Corp increased its position in shares of Synopsys by 0.6% in the first quarter. State Street Corp now owns 6,111,847 shares of the company’s stock worth $296,058,000 after buying an additional 34,721 shares during the period. Principal Financial Group Inc. increased its position in shares of Synopsys by 17.3% in the second quarter. Principal Financial Group Inc. now owns 1,752,739 shares of the company’s stock worth $94,788,000 after buying an additional 258,866 shares during the period. Finally, Victory Capital Management Inc. increased its position in shares of Synopsys by 39.2% in the second quarter. Victory Capital Management Inc. now owns 1,533,075 shares of the company’s stock worth $82,908,000 after buying an additional 431,784 shares during the period. 90.98% of the stock is currently owned by hedge funds and other institutional investors.
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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