Synopsys (NASDAQ:SNPS) Stock Gets Price Target Bump from Morgan Stanley

Synopsys (NASDAQ:SNPS) had its price objective boosted by stock analysts at Morgan Stanley from $500.00 to $574.00 in a research report issued on Tuesday, Benzinga reports. The brokerage currently has an “overweight” rating on the semiconductor company’s stock. Morgan Stanley’s price target would suggest a potential upside of 28.33% from the company’s previous close.

Other analysts have also recently issued research reports about the stock. UBS Group set a $570.00 target price on shares of Synopsys in a research note on Thursday, August 27th. BNP Paribas Exane upped their price target on shares of Synopsys from $420.00 to $475.00 and gave the stock a “neutral” rating in a research report on Thursday, October 1st. Needham & Company LLC raised their price target on shares of Synopsys from $580.00 to $620.00 and gave the company a “buy” rating in a research note on Monday, October 12th. Rothschild & Co Redburn lowered their price objective on Synopsys from $560.00 to $550.00 and set a “buy” rating on the stock in a report on Wednesday, September 23rd. Finally, Sanford C. Bernstein began coverage on Synopsys in a report on Friday, September 25th. They issued an “outperform” rating on the stock. One research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $575.00.

Synopsys Price Performance

Synopsys stock traded down $7.29 during trading on Tuesday, reaching $447.29. The company had a trading volume of 737,607 shares, compared to its average volume of 2,051,401. The firm’s 50-day simple moving average is $428.42 and its 200 day simple moving average is $442.33. Synopsys has a 1-year low of $362.55 and a 1-year high of $539.48. The firm has a market capitalization of $85.72 billion, a PE ratio of 79.05, a price-to-earnings-growth ratio of 1.85 and a beta of 1.21. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34.

Synopsys (NASDAQ:SNPS) last issued its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 EPS for the quarter, topping the consensus estimate of $3.67 by $0.24. The company had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.44 billion. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The firm’s revenue was up 42.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.39 EPS. 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 research analysts anticipate that Synopsys will post 10.97 earnings per share for the current fiscal year.

Synopsys announced that its Board of Directors has initiated a stock repurchase plan on Monday, October 5th that allows the company to repurchase $1.00 billion in outstanding shares. This buyback authorization allows the semiconductor company to reacquire up to 1.1% of its stock through open market purchases. Share buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling

In other Synopsys news, insider Aart de Geus sold 24,641 shares of Synopsys stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $419.44, for a total transaction of $10,335,421.04. Following the transaction, the insider directly owned 120,443 shares of the company’s stock, valued at $50,518,611.92. The trade was a 16.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,604 shares of Synopsys stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $462.84, for a total transaction of $6,759,315.36. Following the sale, the chief executive officer directly owned 76,865 shares in the company, valued at approximately $35,576,196.60. The trade was a 15.97% 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 sold a total of 117,163 shares of company stock worth $51,366,457 in the last three months. Company insiders own 0.56% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. AGH Wealth Advisors LLC lifted its holdings in shares of Synopsys by 4.4% during the 1st quarter. AGH Wealth Advisors LLC now owns 569 shares of the semiconductor company’s stock worth $226,000 after acquiring an additional 24 shares during the last quarter. Elevation Wealth Partners LLC increased its stake in Synopsys by 96.4% in the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock valued at $25,000 after acquiring an additional 27 shares during the last quarter. Bar Harbor Wealth Management increased its stake in Synopsys by 0.7% in the first quarter. Bar Harbor Wealth Management now owns 4,181 shares of the semiconductor company’s stock valued at $1,658,000 after acquiring an additional 31 shares during the last quarter. Oak Grove Capital LLC increased its stake in Synopsys by 1.1% in the third quarter. Oak Grove Capital LLC now owns 2,898 shares of the semiconductor company’s stock valued at $1,260,000 after acquiring an additional 32 shares during the last quarter. Finally, Kintegral Advisory LLC raised its position in Synopsys by 0.6% during the third quarter. Kintegral Advisory LLC now owns 5,812 shares of the semiconductor company’s stock valued at $2,528,000 after purchasing an additional 32 shares in the last quarter. 85.47% of the stock is currently owned by hedge funds and other institutional investors.

Synopsys Company Profile

Synopsys, Inc is an electronic design automation (EDA) and semiconductor intellectual property company serving the global semiconductor and electronics industries. Its software helps engineers design, verify, test and manufacture advanced integrated circuits and electronic systems.

The company’s products and services support digital and analog design, functional verification, design-for-test, manufacturing and semiconductor engineering workflows. Synopsys also provides reusable semiconductor IP, including processor cores, interface technologies, security solutions and other components used in system-on-chip designs.

In addition to its semiconductor design offerings, Synopsys provides software development and application security tools intended to help organizations identify and manage vulnerabilities and risks across the software development lifecycle.