Synopsys (NASDAQ:SNPS) Stock Sees Heavy Call Option Buying

Synopsys, Inc. (NASDAQ:SNPS) saw some unusual options trading activity on Thursday. Stock investors acquired 12,317 call options on the company. This is an increase of 102% compared to the typical volume of 6,097 call options.

Insider Activity

In other news, CEO Sassine Ghazi sold 14,604 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $374.88, for a total transaction of $5,474,747.52. Following the completion of the sale, the chief executive officer owned 76,865 shares in the company, valued at approximately $28,815,151.20. This represents a 15.97% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Aart de Geus sold 25,000 shares of the business’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $441.76, for a total value of $11,044,000.00. Following the sale, the insider directly owned 120,421 shares in the company, valued at $53,197,180.96. This trade represents a 17.19% 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. In the last 90 days, insiders have sold 89,245 shares of company stock valued at $37,992,919. Insiders own 0.56% of the company’s stock.

Institutional Investors Weigh In On Synopsys

A number of institutional investors have recently added to or reduced their stakes in the company. Sequoia Financial Advisors LLC increased its stake in Synopsys by 19.0% during the second quarter. Sequoia Financial Advisors LLC now owns 14,866 shares of the semiconductor company’s stock valued at $6,631,000 after acquiring an additional 2,377 shares during the period. Gemmer Asset Management LLC acquired a new stake in shares of Synopsys during the 2nd quarter worth approximately $224,000. National Pension Service grew its holdings in shares of Synopsys by 1.9% during the 2nd quarter. National Pension Service now owns 470,136 shares of the semiconductor company’s stock worth $209,714,000 after purchasing an additional 8,748 shares in the last quarter. Engineers Gate Manager LP increased its position in shares of Synopsys by 172.7% during the second quarter. Engineers Gate Manager LP now owns 16,365 shares of the semiconductor company’s stock valued at $7,300,000 after purchasing an additional 10,363 shares during the period. Finally, Pinnacle Wealth Management Advisory Group LLC raised its stake in shares of Synopsys by 30.4% in the second quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,236 shares of the semiconductor company’s stock valued at $551,000 after purchasing an additional 288 shares in the last quarter. 85.47% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. UBS Group set a $570.00 price target on shares of Synopsys in a report on Thursday, August 27th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $640.00 target price on shares of Synopsys in a research note on Thursday. Weiss Ratings downgraded shares of Synopsys from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, September 11th. Rosenblatt Securities lifted their target price on shares of Synopsys from $575.00 to $620.00 and gave the company a “buy” rating in a research note on Thursday. Finally, Wells Fargo & Company boosted their price target on shares of Synopsys from $475.00 to $540.00 and gave the company an “overweight” rating in a report on Thursday. Seventeen investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Synopsys has a consensus rating of “Moderate Buy” and an average target price of $584.11.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Above-consensus fiscal 2027 outlook: At its 2026 Investor Day, Synopsys forecast revenue of approximately $11.1 billion to $11.2 billion and adjusted EPS of $19.04 to $19.12, exceeding consensus estimates of $10.8 billion and $16.78, respectively. The company also outlined long-term growth and margin-expansion targets. Synopsys sets fiscal 2027 revenue target of $11.15B at investor day
• Positive Sentiment: Large Amazon agreement: AWS signed a multiyear custom-silicon agreement valued at more than $1 billion. The deal expands Synopsys’ silicon IP business and introduces a license-plus-royalty model that could create recurring revenue as Amazon’s chip production increases. Synopsys, Amazon Web Services sign chip design licensing deal worth more than $1 billion
• Positive Sentiment: OpenAI partnership strengthens the AI narrative: Synopsys and OpenAI will develop GPT-Synopsys, a specialized model combining OpenAI technology with Synopsys’ electronic-design-automation tools. The companies plan joint research, commercialization and revenue sharing, potentially accelerating chip-design workflows and expanding Synopsys’ role in AI infrastructure. Synopsys, OpenAI strike deal to develop AI model for chip design work
• Positive Sentiment: Analyst upgrades and higher targets: Deutsche Bank raised its price target to $640, while Rosenblatt increased its target to $620 and maintained a Buy rating. BofA and KeyBanc also reportedly raised targets after the Investor Day, citing stronger-than-expected growth prospects. Synopsys Stock Surges as Deutsche Bank Boosts Price Target to $640
• Positive Sentiment: Strategic expansion beyond traditional EDA: Synopsys’ Ansys acquisition adds system-level and multiphysics simulation capabilities, broadening its addressable market. Recent quarterly revenue rose 42.4% year over year to $2.48 billion, while adjusted EPS of $3.91 exceeded estimates. Synopsys: AI And Ansys Create A Growth Story
• Neutral Sentiment: Unusually heavy call-option activity reflected bullish trading interest, with 12,317 calls purchased—roughly double the average volume—but this can increase short-term volatility rather than establish fundamental value.
• Negative Sentiment: Execution and valuation remain risks. Synopsys must integrate Ansys and convert large strategic agreements into recurring revenue, while its roughly 86.7 price-to-earnings ratio leaves the stock sensitive to any slowdown or missed expectations.

Synopsys Price Performance

NASDAQ SNPS opened at $490.54 on Friday. The company has a 50 day moving average price of $405.69 and a two-hundred day moving average price of $436.03. Synopsys has a 12-month low of $362.55 and a 12-month high of $539.48. The stock has a market capitalization of $94.01 billion, a PE ratio of 86.67, a price-to-earnings-growth ratio of 2.38 and a beta of 1.21. The company has a quick ratio of 1.24, a current ratio of 1.34 and a debt-to-equity ratio of 0.29.

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

Synopsys Company Profile

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and software tools used to design, verify, and manufacture advanced electronic systems. Its solutions support the development of semiconductors, systems-on-chip, and electronic products across the design cycle, from initial specification and architecture through testing and production.

The company’s offerings include digital and custom integrated-circuit design tools, simulation and verification software, physical design and signoff products, and semiconductor IP such as processor cores, interface technologies, and foundational components.