Synopsys (NASDAQ:SNPS) Shares Gap Up Following Analyst Upgrade

Synopsys, Inc. (NASDAQ:SNPS) gapped up prior to trading on Thursday after Rosenblatt Securities raised their price target on the stock from $575.00 to $620.00. The stock had previously closed at $434.94, but opened at $467.85. Rosenblatt Securities currently has a buy rating on the stock. Synopsys shares last traded at $490.9520, with a volume of 1,410,966 shares trading hands.

Other analysts have also recently issued research reports about the stock. Sanford C. Bernstein began coverage on shares of Synopsys in a research note on Friday, September 25th. They set an “outperform” rating for the company. Roth Capital upgraded shares of Synopsys to a “buy” rating in a research note on Friday, September 25th. Wells Fargo & Company raised their price target on Synopsys from $475.00 to $540.00 and gave the stock an “overweight” rating in a report on Thursday. Barclays began coverage on Synopsys in a research report on Friday, September 25th. They issued an “overweight” rating on the stock. Finally, Weiss Ratings cut Synopsys from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, September 11th. Sixteen investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $581.00.

Insider Buying and Selling at Synopsys

In other news, CEO Sassine Ghazi sold 14,604 shares of Synopsys stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $374.88, for a total value of $5,474,747.52. Following the sale, the chief executive officer owned 76,865 shares of the company’s stock, valued at $28,815,151.20. The trade was a 15.97% decrease in their ownership of the stock. 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 24,641 shares of the business’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $419.44, for a total transaction of $10,335,421.04. Following the transaction, the insider owned 120,443 shares in the company, valued at approximately $50,518,611.92. This trade represents a 16.98% 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. Insiders sold a total of 89,245 shares of company stock valued at $37,992,919 in the last 90 days. Company insiders own 0.56% of the company’s stock.

Synopsys News Summary

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: FY2027 outlook exceeded consensus. Synopsys forecast revenue of approximately $11.1 billion to $11.2 billion, compared with the roughly $10.8 billion consensus estimate, and adjusted EPS of $19.04 to $19.12 versus consensus of $16.78. Management also outlined approximately 15% long-term growth and expanding non-GAAP operating margins. What’s Going On With Synopsys Shares Thursday?
• Positive Sentiment: Large Amazon agreement adds revenue visibility. Amazon Web Services signed a multiyear custom-silicon agreement worth more than $1 billion. The deal uses Synopsys’ silicon intellectual property and AI-powered engineering tools, while moving the IP business toward a license-plus-royalty model that could benefit from rising chip-production volumes. Synopsys and Amazon Web Services sign chip design licensing deal
• Positive Sentiment: OpenAI partnership strengthens the AI growth narrative. The companies will develop “GPT-Synopsys,” a specialized model combining OpenAI technology with Synopsys’ electronic-design-automation tools. The agreement includes tool licensing, joint research and go-to-market efforts, and a shared-revenue framework. OpenAI and Synopsys announce GPT-Synopsys
• Positive Sentiment: Capital returns and analyst support added to the bullish reaction. Synopsys announced plans for a $1 billion share repurchase, while Rosenblatt raised its price target from $575 to $620 and maintained a Buy rating. Bank of America also reportedly lifted its target after viewing the long-term earnings targets as well above consensus. Synopsys growth outlook, buyback and partnerships
• Neutral Sentiment: The outlook implies substantial execution requirements, particularly for converting AI partnerships into commercial revenue and achieving the projected royalty growth. With Synopsys trading at a high earnings multiple, investors may remain sensitive to any guidance shortfall.

Institutional Trading of Synopsys

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

Synopsys Price Performance

The stock’s fifty day moving average price is $403.35 and its 200-day moving average price is $435.48. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34. The firm has a market cap of $94.19 billion, a PE ratio of 86.94, a P/E/G ratio of 2.27 and a beta of 1.23.

Synopsys (NASDAQ:SNPS) last issued its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, topping the consensus estimate of $3.67 by $0.24. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The company had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.44 billion. During the same period in the prior year, the business posted $3.39 earnings per share. The firm’s revenue for the quarter 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 forecast that Synopsys, Inc. will post 10.97 EPS 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.