Synopsys (NASDAQ:SNPS) Announces Earnings Results, Misses Estimates By $0.80 EPS

Synopsys (NASDAQ:SNPS) posted its quarterly earnings results on Wednesday. The semiconductor company reported $2.59 EPS for the quarter, missing analysts’ consensus estimates of $3.39 by ($0.80), Zacks reports. Synopsys had a net margin of 36.12% and a return on equity of 20.48%.

Synopsys Stock Performance

Shares of NASDAQ:SNPS traded down $49.36 during midday trading on Wednesday, hitting $462.43. 4,702,597 shares of the stock were exchanged, compared to its average volume of 1,120,313. The stock has a market capitalization of $71.50 billion, a price-to-earnings ratio of 31.85, a P/E/G ratio of 3.23 and a beta of 1.16. The business’s 50-day moving average price is $453.18 and its 200 day moving average price is $487.60. Synopsys has a 12 month low of $365.74 and a 12 month high of $624.80.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on SNPS. Rosenblatt Securities reaffirmed a “buy” rating and issued a $660.00 price target on shares of Synopsys in a research note on Tuesday, February 25th. Morgan Stanley decreased their target price on Synopsys from $625.00 to $590.00 and set an “overweight” rating on the stock in a research report on Monday, February 24th. Needham & Company LLC reiterated a “buy” rating and issued a $650.00 target price on shares of Synopsys in a research report on Thursday, February 27th. Piper Sandler decreased their target price on Synopsys from $655.00 to $653.00 and set an “overweight” rating on the stock in a research report on Thursday, February 27th. Finally, KeyCorp set a $575.00 target price on Synopsys and gave the company an “overweight” rating in a research report on Tuesday, May 20th. One equities research analyst has rated the stock with a hold rating and twelve have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $614.86.

Insider Transactions at Synopsys

In other news, CEO Sassine Ghazi sold 11,366 shares of the business’s stock in a transaction dated Monday, March 3rd. The stock was sold at an average price of $463.75, for a total transaction of $5,270,982.50. Following the sale, the chief executive officer now directly owns 70,922 shares in the company, valued at approximately $32,890,077.50. The trade was a 13.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Geus Aart De sold 15,705 shares of the company’s stock in a transaction that occurred on Thursday, March 6th. The shares were sold at an average price of $444.42, for a total value of $6,979,616.10. Following the completion of the sale, the insider now owns 116,671 shares in the company, valued at $51,850,925.82. The trade was a 11.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 0.62% of the company’s stock.

Institutional Trading of Synopsys

Institutional investors have recently added to or reduced their stakes in the stock. Integrated Wealth Concepts LLC lifted its stake in Synopsys by 11.6% in the first quarter. Integrated Wealth Concepts LLC now owns 760 shares of the semiconductor company’s stock valued at $326,000 after buying an additional 79 shares during the period. Brighton Jones LLC raised its holdings in Synopsys by 5.7% during the fourth quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company’s stock worth $447,000 after buying an additional 50 shares during the last quarter. Finally, NewEdge Advisors LLC grew its stake in shares of Synopsys by 15.1% in the 1st quarter. NewEdge Advisors LLC now owns 3,010 shares of the semiconductor company’s stock worth $1,291,000 after acquiring an additional 395 shares in the last quarter. 85.47% of the stock is currently owned by institutional investors.

About Synopsys

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.