Traders Buy High Volume of Synopsys Call Options (NASDAQ:SNPS)

Synopsys, Inc. (NASDAQ:SNPS) was the target of some unusual options trading activity on Wednesday. Investors purchased 15,971 call options on the company. This represents an increase of approximately 169% compared to the average daily volume of 5,938 call options.

Insider Transactions at Synopsys

In other Synopsys news, CFO Shelagh Glaser sold 3,657 shares of the company’s stock in a transaction dated Friday, December 19th. The shares were sold at an average price of $460.77, for a total transaction of $1,685,035.89. Following the transaction, the chief financial officer directly owned 17,842 shares in the company, valued at approximately $8,221,058.34. This represents a 17.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Janet Lee sold 250 shares of the stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $530.00, for a total transaction of $132,500.00. Following the completion of the transaction, the insider directly owned 11,959 shares of the company’s stock, valued at approximately $6,338,270. This trade represents a 2.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 4,157 shares of company stock valued at $1,945,036 in the last quarter. Insiders own 0.62% of the company’s stock.

Institutional Trading of Synopsys

A number of hedge funds have recently added to or reduced their stakes in SNPS. Vanguard Group Inc. increased its stake in shares of Synopsys by 20.7% during the 3rd quarter. Vanguard Group Inc. now owns 18,181,185 shares of the semiconductor company’s stock valued at $8,970,415,000 after acquiring an additional 3,120,401 shares during the last quarter. Victory Capital Management Inc. increased its position in Synopsys by 238.8% during the third quarter. Victory Capital Management Inc. now owns 2,824,349 shares of the semiconductor company’s stock worth $1,393,506,000 after purchasing an additional 1,990,608 shares during the last quarter. Coatue Management LLC purchased a new position in Synopsys during the third quarter worth approximately $892,605,000. Capital Research Global Investors boosted its holdings in shares of Synopsys by 226.6% in the 3rd quarter. Capital Research Global Investors now owns 2,524,512 shares of the semiconductor company’s stock valued at $1,245,533,000 after purchasing an additional 1,751,432 shares during the last quarter. Finally, Norges Bank purchased a new stake in shares of Synopsys during the 4th quarter valued at $730,197,000. 85.47% of the stock is owned by institutional investors and hedge funds.

Synopsys Trading Up 2.0%

Shares of NASDAQ:SNPS traded up $8.99 during trading on Wednesday, reaching $449.71. The stock had a trading volume of 977,608 shares, compared to its average volume of 2,132,714. The business has a fifty day moving average price of $472.93 and a 200-day moving average price of $479.23. The company has a quick ratio of 1.52, a current ratio of 1.62 and a debt-to-equity ratio of 0.48. The stock has a market cap of $86.15 billion, a P/E ratio of 56.28, a PEG ratio of 3.50 and a beta of 1.12. Synopsys has a fifty-two week low of $365.74 and a fifty-two week high of $651.73.

Synopsys (NASDAQ:SNPS) last announced its earnings results on Wednesday, December 10th. The semiconductor company reported $2.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.79 by $0.11. The firm had revenue of $2.25 billion for the quarter, compared to analyst estimates of $2.25 billion. Synopsys had a net margin of 18.89% and a return on equity of 7.89%. Synopsys’s revenue was up 37.8% compared to the same quarter last year. During the same quarter last year, the business earned $3.40 earnings per share. Synopsys has set its FY 2026 guidance at 14.320-14.400 EPS and its Q1 2026 guidance at 3.520-3.580 EPS. As a group, analysts anticipate that Synopsys will post 10.64 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on SNPS. Citigroup began coverage on Synopsys in a research note on Monday, November 24th. They issued a “buy” rating and a $580.00 price objective for the company. Wells Fargo & Company upped their target price on Synopsys from $445.00 to $500.00 and gave the company an “equal weight” rating in a report on Thursday, December 11th. JPMorgan Chase & Co. lifted their price target on Synopsys from $600.00 to $650.00 and gave the stock an “overweight” rating in a research note on Thursday, December 11th. Piper Sandler lowered shares of Synopsys from an “overweight” rating to a “neutral” rating and decreased their price objective for the stock from $602.00 to $520.00 in a research report on Tuesday, January 13th. Finally, Needham & Company LLC increased their price objective on shares of Synopsys from $550.00 to $580.00 and gave the company a “buy” rating in a research note on Thursday, December 11th. Nine investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Synopsys currently has a consensus rating of “Hold” and an average price target of $547.00.

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.