Synopsys, Inc. (NASDAQ:SNPS) Receives $561.28 Average PT from Analysts

Synopsys, Inc. (NASDAQ:SNPS) has been given an average recommendation of “Moderate Buy” by the eighteen brokerages that are currently covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, five have issued a hold recommendation and twelve have issued a buy recommendation on the company. The average 12 month target price among brokers that have covered the stock in the last year is $561.2778.

A number of equities analysts recently issued reports on SNPS shares. Zacks Research lowered Synopsys from a “strong-buy” rating to a “hold” rating in a report on Friday, August 21st. Piper Sandler raised Synopsys from a “neutral” rating to an “overweight” rating and increased their price objective for the stock from $450.00 to $550.00 in a research report on Tuesday, June 23rd. Stifel Nicolaus lifted their target price on Synopsys from $550.00 to $600.00 and gave the company a “buy” rating in a research note on Thursday, May 28th. Robert W. Baird raised Synopsys from a “neutral” rating to an “outperform” rating and boosted their target price for the company from $558.00 to $560.00 in a report on Thursday, August 27th. Finally, Wells Fargo & Company decreased their price target on Synopsys from $535.00 to $450.00 and set an “equal weight” rating for the company in a report on Tuesday, August 11th.

Insider Activity

In related news, CEO Sassine Ghazi sold 14,603 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the transaction, the chief executive officer owned 75,020 shares of the company’s stock, valued at $34,431,179.20. This represents a 16.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 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. Also, CFO Shelagh Glaser sold 3,394 shares of the stock in a transaction on Friday, June 12th. The stock was sold at an average price of $450.02, for a total value of $1,527,367.88. Following the completion of the transaction, the chief financial officer owned 14,358 shares of the company’s stock, valued at $6,461,387.16. The trade was a 19.12% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 92,638 shares of company stock valued at $40,747,732 over the last quarter. Corporate insiders own 0.56% of the company’s stock.

Hedge Funds Weigh In On Synopsys

A number of large investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in Synopsys in the second quarter valued at about $7,228,099,000. State Street Corp boosted its position in Synopsys by 0.3% during the fourth quarter. State Street Corp now owns 8,788,890 shares of the semiconductor company’s stock worth $4,128,317,000 after purchasing an additional 28,532 shares in the last quarter. Morgan Stanley grew its holdings in Synopsys by 2.5% in the fourth quarter. Morgan Stanley now owns 4,573,980 shares of the semiconductor company’s stock valued at $2,148,491,000 after purchasing an additional 109,917 shares during the last quarter. Geode Capital Management LLC grew its holdings in Synopsys by 1.3% in the fourth quarter. Geode Capital Management LLC now owns 4,310,846 shares of the semiconductor company’s stock valued at $2,017,256,000 after purchasing an additional 54,329 shares during the last quarter. Finally, Van ECK Associates Corp increased its position 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 valued at $1,542,175,000 after buying an additional 569,687 shares in the last quarter. 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: Synopsys reported fiscal third-quarter revenue of approximately $2.48 billion and non-GAAP EPS of $3.91, exceeding analyst estimates of $2.44 billion and $3.67, respectively. Revenue grew 42.4% year over year, underscoring continued demand for electronic-design automation and semiconductor IP. Synopsys Results Analysis
• Positive Sentiment: Analysts continue to see significant long-term upside, with reported price targets generally ranging from $450 to $610 and a consensus “Moderate Buy” rating. The bullish case centers on Synopsys’ strategic importance to advanced chip and AI design. Synopsys Wall Street Price Targets
• Neutral Sentiment: Institutional positioning is mixed: 769 investors added SNPS shares in their latest reported quarter, while 764 reduced positions. This suggests continued interest but limited consensus among large investors. Synopsys Institutional Activity
• Negative Sentiment: The earnings beat did not translate into a sufficiently large outlook increase for a stock priced for stronger growth. Full-year guidance implies approximately $9.715 billion of revenue and $15.07 of non-GAAP EPS at the midpoint, prompting a potential “sell-the-news” reaction.
• Negative Sentiment: Investors remain concerned about execution and margin pressure from the Ansys integration. Synopsys reported roughly $236.3 million in restructuring charges during the first nine months of fiscal 2026, while acquired-intangible amortization and approximately $10 billion of debt add to acquisition-related financial risks. Synopsys Ansys Integration Analysis
• Negative Sentiment: Executive Chair Aart de Geus sold 49,641 shares for approximately $21.4 million across August 28, August 31 and September 1. The transactions were made under a pre-arranged Rule 10b5-1 plan, reducing their value as a discretionary bearish signal, but the selling may still weigh on sentiment. Synopsys Insider Selling
• Negative Sentiment: SNPS remains sensitive to higher interest rates and semiconductor-sector weakness. Its valuation remains demanding, with a reported P/E ratio above 69, while the stock is trading below its 200-day moving average. Is Synopsys Stock Underperforming the Nasdaq?

Synopsys Price Performance

Shares of NASDAQ SNPS opened at $393.84 on Monday. The stock has a market cap of $75.48 billion, a P/E ratio of 69.58, a P/E/G ratio of 2.16 and a beta of 1.23. Synopsys has a twelve month low of $366.00 and a twelve month high of $615.79. The stock has a 50 day moving average of $412.27 and a two-hundred day moving average of $439.48. The company has a current ratio of 1.34, a quick ratio of 1.24 and a debt-to-equity ratio of 0.29.

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

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.