Synopsys (NASDAQ:SNPS) Upgraded to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Synopsys (NASDAQ:SNPS) from a hold rating to a strong-buy rating in a research note issued to investors on Tuesday morning,Zacks.com reports.

A number of other equities analysts also recently weighed in on SNPS. BNP Paribas Exane upped their price target on Synopsys from $425.00 to $450.00 and gave the stock an “underperform” rating in a research report on Thursday, May 28th. KeyCorp reissued an “overweight” rating on shares of Synopsys in a research report on Thursday, May 28th. Rosenblatt Securities increased their target price on shares of Synopsys from $530.00 to $575.00 and gave the stock a “buy” rating in a report on Tuesday, May 26th. Berenberg Bank set a $633.00 price target on shares of Synopsys in a research note on Wednesday, May 27th. Finally, Stifel Nicolaus increased their price objective on shares of Synopsys from $550.00 to $600.00 and gave the stock a “buy” rating in a research note on Thursday, May 28th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $570.06.

Synopsys Stock Performance

SNPS opened at $454.53 on Tuesday. The business’s 50-day moving average price is $483.60 and its two-hundred day moving average price is $461.62. Synopsys has a 1 year low of $376.18 and a 1 year high of $651.73. The company has a market capitalization of $87.03 billion, a price-to-earnings ratio of 105.22, a P/E/G ratio of 2.62 and a beta of 1.22. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.43 and a quick ratio of 1.32.

Synopsys (NASDAQ:SNPS) last posted its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share for the quarter, topping the consensus estimate of $3.15 by $0.20. The company had revenue of $2.28 billion during the quarter, compared to analysts’ expectations of $2.25 billion. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.Synopsys’s revenue for the quarter was up 41.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.67 earnings per share. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. Equities analysts expect that Synopsys will post 10.65 EPS for the current fiscal year.

Insider Buying and Selling

In other Synopsys news, CEO Sassine Ghazi sold 14,603 shares of Synopsys stock in a transaction on Monday, June 15th. The shares were sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the completion of the transaction, the chief executive officer directly owned 75,020 shares of the company’s stock, valued at $34,431,179.20. The trade was a 16.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Shelagh Glaser sold 3,394 shares of the stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the completion of the transaction, the chief financial officer directly owned 14,358 shares in the company, valued at $6,461,387.16. The trade was a 19.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.56% of the stock is currently owned by insiders.

Institutional Trading of Synopsys

Several hedge funds and other institutional investors have recently modified their holdings of SNPS. Brighton Jones LLC raised its holdings in Synopsys by 5.7% in the 4th quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company’s stock valued at $447,000 after acquiring an additional 50 shares during the period. Integrated Wealth Concepts LLC grew its position in shares of 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 purchasing an additional 79 shares during the last quarter. NewEdge Advisors LLC grew its position in shares of Synopsys by 15.1% in the first quarter. NewEdge Advisors LLC now owns 3,010 shares of the semiconductor company’s stock valued at $1,291,000 after purchasing an additional 395 shares during the last quarter. WINTON GROUP Ltd increased its stake in shares of Synopsys by 9.2% during the second quarter. WINTON GROUP Ltd now owns 758 shares of the semiconductor company’s stock worth $389,000 after purchasing an additional 64 shares during the period. Finally, Treasurer of the State of North Carolina increased its stake in shares of Synopsys by 2.1% during the second quarter. Treasurer of the State of North Carolina now owns 72,095 shares of the semiconductor company’s stock worth $36,962,000 after purchasing an additional 1,505 shares during the period. Institutional investors own 85.47% of the company’s stock.

Synopsys Company Profile

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.