Synopsys (NASDAQ:SNPS) Share Price Breaks Below 200-Day Moving Average – Here’s Why

Shares of Synopsys, Inc. (NASDAQ:SNPS) passed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $442.57 and traded as low as $436.50. Synopsys shares last traded at $440.31, with a volume of 2,777,137 shares.

Wall Street Analysts Forecast Growth

SNPS has been the topic of a number of research reports. Robert W. Baird raised shares of Synopsys from a “neutral” rating to an “outperform” rating and lifted their price target for the company from $558.00 to $560.00 in a research note on Thursday, August 27th. BNP Paribas Exane increased their price objective on shares of Synopsys from $420.00 to $475.00 and gave the stock a “neutral” rating in a research report on Thursday, October 1st. Benchmark restated a “buy” rating and set a $570.00 price objective on shares of Synopsys in a report on Thursday, August 27th. Zacks Research raised shares of Synopsys from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 2nd. Finally, HSBC cut shares of Synopsys from a “buy” rating to a “reduce” rating in a research report on Friday, September 25th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $575.00.

Synopsys Stock Performance

The stock’s 50-day moving average price is $441.61 and its 200 day moving average price is $442.27. The firm has a market cap of $86.33 billion, a P/E ratio of 79.59, a price-to-earnings-growth ratio of 1.48 and a beta of 1.18. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.34 and a quick ratio of 1.24.

Synopsys (NASDAQ:SNPS) last released its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, beating analysts’ consensus estimates of $3.67 by $0.24. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The business had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.44 billion. During the same quarter last year, the firm earned $3.39 earnings per share. The firm’s revenue for the quarter 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, equities analysts predict that Synopsys, Inc. will post 11.01 EPS for the current year.

Synopsys declared that its Board of Directors has authorized a share buyback program on Monday, October 5th that permits the company to buy back $1 billion in shares. This buyback authorization permits the semiconductor company to reacquire up to 1.1% of its shares through open market purchases. Stock buyback programs are often a sign that the company’s leadership believes its stock is undervalued.

Insider Activity

In other news, insider Aart de Geus sold 24,641 shares of Synopsys stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $419.44, for a total value of $10,335,421.04. Following the completion of the transaction, the insider owned 120,443 shares of the company’s stock, valued at $50,518,611.92. This trade represents a 16.98% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Janet Lee sold 1,144 shares of the business’s stock in a transaction dated Tuesday, October 6th. The stock was sold at an average price of $502.52, for a total transaction of $574,882.88. Following the transaction, the insider owned 16,534 shares in the company, valued at $8,308,665.68. This represents a 6.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 117,163 shares of company stock valued at $51,366,457. 0.56% of the stock is owned by insiders.

Hedge Funds Weigh In On Synopsys

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Elevation Wealth Partners LLC raised its stake in Synopsys by 96.4% in the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock valued at $25,000 after buying an additional 27 shares during the period. Osbon Capital Management LLC acquired a new position in shares of Synopsys during the 2nd quarter worth approximately $25,000. IMG Wealth Management Inc. acquired a new position in shares of Synopsys during the 2nd quarter worth approximately $28,000. GK Wealth Management LLC bought a new stake in Synopsys in the 3rd quarter valued at $28,000. Finally, Geneos Wealth Management Inc. raised its stake in Synopsys by 151.5% in the 1st quarter. Geneos Wealth Management Inc. now owns 83 shares of the semiconductor company’s stock valued at $33,000 after acquiring an additional 50 shares during the period. Institutional investors own 85.47% of the company’s stock.

Synopsys Company Profile

Synopsys, Inc develops software, semiconductor intellectual property (IP) and services used to design and verify electronic systems. Its electronic design automation (EDA) tools help customers create, simulate, test and validate chips and other complex electronic products, while its IP portfolio provides reusable building blocks for semiconductor designs.

The company also offers software security and quality tools that help developers identify vulnerabilities and assess applications throughout the software development process.