Synopsys, Inc. (NASDAQ:SNPS) Given Consensus Rating of “Moderate Buy” by Brokerages

Synopsys, Inc. (NASDAQ:SNPS) has earned an average recommendation of “Moderate Buy” from the eighteen research firms that are presently covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, five have issued a hold rating, ten have issued a buy rating and two have issued a strong buy rating on the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $565.0588.

SNPS has been the subject of a number of analyst reports. Wells Fargo & Company decreased their price objective on shares of Synopsys from $535.00 to $450.00 and set an “equal weight” rating for the company in a research report on Tuesday. BNP Paribas Exane raised their target price on Synopsys from $425.00 to $450.00 and gave the company an “underperform” rating in a research report on Thursday, May 28th. Citigroup lifted their price target on Synopsys from $600.00 to $610.00 and gave the company a “buy” rating in a research note on Thursday, May 28th. KeyCorp reaffirmed an “overweight” rating on shares of Synopsys in a report on Thursday, May 28th. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Synopsys in a report on Monday, June 8th.

Key Headlines Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys is expanding its use of AI in chip design, verification and simulation. These tools can improve engineering productivity and reinforce the company’s role in the semiconductor supply chain as demand for AI chips grows. Can SNPS Leverage AI to Accelerate Chip Design and Drive Growth?
• Positive Sentiment: The company is making a major push into agentic AI engineering software, developed in collaboration with Nvidia. The technology could create new growth opportunities by automating portions of chip-to-system development and strengthening Synopsys’ exposure to AI infrastructure. Synopsys Bets Big on Agentic AI
• Positive Sentiment: Despite a recent decline in the shares, analysts and market commentary continue to point to Synopsys’ recurring revenue base, AI exposure and Ansys acquisition as supports for longer-term growth. Its latest reported quarter also included revenue growth of 41.9% year over year and an earnings beat.
• Positive Sentiment: The broader Nvidia-led AI ecosystem remains a potential tailwind for Synopsys because the company provides software used to design and validate advanced chips. Nvidia’s expanding influence in AI investment and data centers could increase demand for semiconductor design tools. Nvidia Will Be the World’s First $10 Trillion Company
• Neutral Sentiment: Synopsys announced that General Counsel Janet Lee will step down, with Cor… identified as part of the transition. The leadership change may receive limited market attention unless additional details indicate an operational or governance concern. Synopsys Announces Transition of General Counsel Role
• Neutral Sentiment: An average analyst price target of $570.06 suggests substantial potential upside, but the figure does not represent a new rating or estimate revision and therefore may have limited immediate impact.
• Negative Sentiment: Wells Fargo lowered its price target from $535 to $450 and maintained an “equal weight” rating. Although the revised target remains above the recent trading level, the cut signals more cautious expectations and may weigh on sentiment. Wells Fargo Price Target Update

Insider Activity at Synopsys

In other news, CFO Shelagh Glaser sold 3,394 shares of the stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the transaction, the chief financial officer owned 14,358 shares in the company, valued at $6,461,387.16. This trade represents a 19.12% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $458.96, for a total value of $6,702,192.88. Following the transaction, the chief executive officer owned 75,020 shares in the company, valued at $34,431,179.20. This trade represents a 16.29% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Corporate insiders own 0.56% of the company’s stock.

Institutional Trading of Synopsys

Several institutional investors have recently modified their holdings of SNPS. Sankala Group LLC purchased a new position in Synopsys in the 4th quarter valued at about $25,000. Elevation Wealth Partners LLC increased its stake in Synopsys by 96.4% during the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock worth $25,000 after buying an additional 27 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of Synopsys during the fourth quarter valued at approximately $28,000. IMG Wealth Management Inc. acquired a new position in shares of Synopsys during the second quarter valued at approximately $28,000. Finally, Caitong International Asset Management Co. Ltd purchased a new position in shares of Synopsys in the fourth quarter valued at approximately $28,000. Institutional investors and hedge funds own 85.47% of the company’s stock.

Synopsys Trading Up 0.3%

Shares of NASDAQ:SNPS opened at $412.32 on Thursday. The company has a current ratio of 1.43, a quick ratio of 1.32 and a debt-to-equity ratio of 0.33. Synopsys has a 12-month low of $366.00 and a 12-month high of $628.89. The business has a 50 day moving average of $428.15 and a two-hundred day moving average of $444.13. The company has a market capitalization of $78.95 billion, a PE ratio of 95.44, a PEG ratio of 2.41 and a beta of 1.23.

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

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.