Synopsys (NASDAQ:SNPS) Shares Down 5.4% on Insider Selling

Shares of Synopsys, Inc. (NASDAQ:SNPSGet Free Report) traded down 5.4% during trading on Tuesday following insider selling activity. The stock traded as low as $421.17 and last traded at $416.0560. 347,224 shares traded hands during mid-day trading, a decline of 83% from the average daily volume of 1,987,778 shares. The stock had previously closed at $439.59.

Specifically, insider Geus Aart De sold 25,000 shares of the stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $445.55, for a total value of $11,138,750.00. Following the completion of the sale, the insider directly owned 120,421 shares of the company’s stock, valued at approximately $53,653,576.55. This represents a 17.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

SNPS has been the topic of a number of recent analyst reports. Bank of America raised their price target on Synopsys from $515.00 to $600.00 and gave the company a “buy” rating in a report on Thursday, May 28th. BNP Paribas Exane increased their target price on Synopsys from $425.00 to $450.00 and gave the stock an “underperform” rating in a research report on Thursday, May 28th. Berenberg Bank set a $633.00 price target on Synopsys in a report on Wednesday, May 27th. Citigroup upped their price target on Synopsys from $600.00 to $610.00 and gave the stock a “buy” rating in a research note on Thursday, May 28th. Finally, Weiss Ratings raised shares of Synopsys from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday. Twelve investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Synopsys currently has an average rating of “Moderate Buy” and a consensus price target of $561.28.

Check Out Our Latest Stock Analysis on Synopsys

Synopsys News Summary

Here are the key news stories impacting Synopsys this week:

  • Positive Sentiment: Analysts remain optimistic about Synopsys, with the consensus price target implying approximately 25.4% upside. Zacks noted that broad agreement among analysts raising earnings estimates may be a more useful bullish signal than the target price alone. Wall Street Analysts See a 25.39% Upside in Synopsys
  • Positive Sentiment: Synopsys’ recent earnings momentum continues to support the bullish case: quarterly revenue rose 42.4% year over year to $2.48 billion, exceeding estimates, while EPS of $3.91 beat consensus by $0.24. Commentary also highlighted the company’s strong growth relative to its closest electronic design automation rival and potentially lower valuation multiple. The Market May Be Underestimating This AI Chip-Design Stock
  • Positive Sentiment: Wall Street’s overall stance remains favorable. Synopsys has a “Moderate Buy” consensus rating, an average price target of $561.28, and recent support from Needham, Rosenblatt Securities and Robert W. Baird, which upgraded the stock to “outperform.” Is It Worth Investing in Synopsys Based on Wall Street’s Bullish Views?
  • Neutral Sentiment: Executive Chair Aart de Geus sold 25,000 shares for approximately $11.1 million, reducing his position by 17.19%. Because the transaction was conducted under a pre-arranged Rule 10b5-1 plan, it may be less indicative of changing confidence in the company, although insider selling can still weigh on sentiment. Synopsys Insider Geus Aart De Sells 25,000 Shares
  • Negative Sentiment: Semiconductor stocks broadly declined at the open as a global bond selloff pushed long-term yields higher. Rising yields can pressure high-multiple growth stocks such as Synopsys, which trades at an elevated earnings multiple. Semiconductor Stocks Slide as Global Bond Selloff Lifts Yields

Synopsys Stock Down 5.1%

The company’s 50 day moving average is $416.14 and its 200 day moving average is $440.15. The company has a current ratio of 1.34, a quick ratio of 1.24 and a debt-to-equity ratio of 0.29. The company has a market cap of $79.95 billion, a PE ratio of 73.55, a P/E/G ratio of 2.42 and a beta of 1.23.

Synopsys (NASDAQ:SNPSGet Free Report) last announced its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter, compared to analysts’ expectations of $2.44 billion. During the same quarter in the prior year, the firm earned $3.39 earnings per share. Synopsys’s 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, analysts predict that Synopsys, Inc. will post 11.03 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Synopsys

A number of hedge funds and other institutional investors have recently modified their holdings of SNPS. Foronjy Financial LLC boosted its position in Synopsys by 5.2% during the fourth quarter. Foronjy Financial LLC now owns 446 shares of the semiconductor company’s stock valued at $210,000 after purchasing an additional 22 shares in the last quarter. AGH Wealth Advisors LLC lifted its position in Synopsys by 4.4% during the first quarter. AGH Wealth Advisors LLC now owns 569 shares of the semiconductor company’s stock valued at $226,000 after acquiring an additional 24 shares during the last quarter. Hardy Reed LLC lifted its position in Synopsys by 0.8% during the fourth quarter. Hardy Reed LLC now owns 3,309 shares of the semiconductor company’s stock valued at $1,554,000 after acquiring an additional 25 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC boosted its stake in Synopsys by 16.9% in the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 180 shares of the semiconductor company’s stock valued at $85,000 after acquiring an additional 26 shares in the last quarter. Finally, MCF Advisors LLC boosted its stake in Synopsys by 17.8% in the fourth quarter. MCF Advisors LLC now owns 172 shares of the semiconductor company’s stock valued at $81,000 after acquiring an additional 26 shares in the last quarter. 85.47% of the stock is currently owned by institutional investors.

Synopsys Company Profile

(Get Free Report)

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.

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