Synopsys, Inc. (NASDAQ:SNPS) Stock Has Average Target Price of $561.00 According to Analysts

Shares of Synopsys, Inc. (NASDAQ:SNPS) have received a consensus rating of “Moderate Buy” from the twenty-one ratings firms that are presently covering the stock, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, four have given a hold recommendation and fifteen have issued a buy recommendation on the company. The average 1 year price target among brokerages that have covered the stock in the last year is $574.61.

Several analysts recently commented on SNPS shares. Roth Capital raised Synopsys to a “buy” rating in a research note on Friday. Piper Sandler upgraded shares of Synopsys from a “neutral” rating to an “overweight” rating and upped their target price for the stock from $450.00 to $550.00 in a research report on Tuesday, June 23rd. Rosenblatt Securities reiterated a “buy” rating and issued a $575.00 price target on shares of Synopsys in a report on Tuesday, August 25th. Benchmark reaffirmed a “buy” rating and issued a $570.00 price objective on shares of Synopsys in a research note on Thursday, August 27th. Finally, HSBC cut Synopsys from a “buy” rating to a “reduce” rating in a report on Friday.

Insider Activity

In other news, insider Aart de Geus sold 25,000 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $441.76, for a total value of $11,044,000.00. Following the completion of the transaction, the insider owned 120,421 shares in the company, valued at $53,197,180.96. This represents a 17.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available 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 the company’s 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 transaction, the chief executive officer directly owned 76,865 shares of the company’s stock, valued at approximately $28,815,151.20. The trade was a 15.97% 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. Over the last quarter, insiders have sold 89,245 shares of company stock worth $37,992,919. Corporate insiders own 0.56% of the company’s stock.

Hedge Funds Weigh In On Synopsys

A number of large investors have recently bought and sold shares of SNPS. Sequoia Financial Advisors LLC boosted its holdings in Synopsys by 19.0% during the second quarter. Sequoia Financial Advisors LLC now owns 14,866 shares of the semiconductor company’s stock worth $6,631,000 after purchasing an additional 2,377 shares during the last quarter. Gemmer Asset Management LLC bought a new position in Synopsys during the second quarter worth about $224,000. National Pension Service boosted its stake 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 acquiring an additional 8,748 shares during the period. Engineers Gate Manager LP boosted its position in Synopsys by 172.7% during the second 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 during the period. Finally, Pinnacle Wealth Management Advisory Group LLC lifted 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 buying an additional 288 shares during the last quarter. Institutional investors and hedge funds own 85.47% of the company’s stock.

Synopsys News Summary

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: HSBC upgraded Synopsys to Buy and set a $700 price target, implying substantial upside from the recent trading level. The bank expects AI-related demand in electronic design automation and sees roughly 28% earnings growth through 2028, improving the stock’s risk-reward profile. Synopsys Stock Climbs as HSBC Upgrades Software Giant on AI Growth Tailwinds
• Positive Sentiment: Synopsys and Taiwan Semiconductor are collaborating to accelerate AI-system innovation. The partnership supports Synopsys’ positioning in advanced chip-design software and could reinforce long-term demand from AI infrastructure investment. Synopsys, Taiwan Semiconductor Collaborate to Accelerate AI Systems Innovation
• Positive Sentiment: BNP Paribas Exane raised its rating on SNPS from Underperform to Neutral, citing a potentially positive investor-day catalyst. The upgrade removes a bearish call, although its $420 target remains below the recent share price. Synopsys Shares Rise After BNP Paribas Upgrade
• Neutral Sentiment: Analysts broadly maintain a Moderate Buy consensus, while Synopsys remains a sales-growth candidate with strong industry exposure. However, its elevated valuation and position below the 200-day moving average make further gains dependent on stronger execution and guidance.
• Negative Sentiment: Investor attention remains focused on Synopsys’ performance since its last earnings report, with the stock down about 8.6% over that period despite revenue growth of 42.4% and an earnings beat. This suggests expectations and valuation, rather than current operating momentum alone, are weighing on sentiment. Why Is Synopsys Down Since Last Earnings Report?
• Negative Sentiment: A Motley Fool analysis cautioned that Synopsys’ non-GAAP earnings may look stronger than underlying results after adjustments. That accounting-quality concern could limit the market’s willingness to assign a premium multiple, particularly with the stock’s high price-to-earnings ratio. Why Synopsys Stock Popped, Then Dropped

Synopsys Price Performance

Shares of NASDAQ:SNPS opened at $425.76 on Friday. Synopsys has a 1-year low of $362.55 and a 1-year high of $539.48. 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 business’s 50 day moving average is $400.90 and its 200-day moving average is $435.60. The firm has a market capitalization of $81.59 billion, a PE ratio of 75.22, a PEG ratio of 2.33 and a beta of 1.23.

Synopsys (NASDAQ:SNPS) last announced its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.67 by $0.24. The firm had revenue of $2.48 billion for 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 business’s revenue for the quarter was up 42.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $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. Sell-side analysts predict that Synopsys will post 11 earnings per share for the current year.

About Synopsys

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and related services. Its products help semiconductor and electronics companies design, verify, test and manufacture integrated circuits and complex electronic systems.

The company’s EDA portfolio includes tools for digital and analog design, simulation, verification, physical implementation, signoff and manufacturing preparation. Synopsys also provides reusable semiconductor IP, including processor cores, interface technologies, embedded memories and security-related components, which customers can incorporate into system-on-chip designs.

Synopsys additionally offers software integrity and application security solutions that help organizations identify and manage vulnerabilities and risks in the software development lifecycle.