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

Synopsys (NASDAQ:SNPS) was upgraded by stock analysts at Benchmark to a “strong-buy” rating in a research note issued on Wednesday,Zacks.com reports.

SNPS has been the subject of several other reports. Berenberg Bank set a $633.00 price objective on shares of Synopsys in a research report on Wednesday, May 27th. Stifel Nicolaus boosted their target price on shares of Synopsys from $550.00 to $600.00 and gave the company a “buy” rating in a report on Thursday, May 28th. KeyCorp reiterated an “overweight” rating on shares of Synopsys in a report on Thursday, May 28th. Citigroup lifted their price objective on Synopsys from $600.00 to $610.00 and gave the stock a “buy” rating in a research report on Thursday, May 28th. Finally, Bank of America boosted their price objective on Synopsys from $515.00 to $600.00 and gave the company a “buy” rating in a research note on Thursday, May 28th. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $570.06.

Synopsys Price Performance

Synopsys stock opened at $417.03 on Wednesday. The stock’s 50 day moving average is $471.95 and its 200 day moving average is $459.14. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.43 and a quick ratio of 1.32. The firm has a market cap of $79.85 billion, a P/E ratio of 96.53, a P/E/G ratio of 2.50 and a beta of 1.22. Synopsys has a one year low of $376.18 and a one year high of $651.73.

Synopsys (NASDAQ:SNPS) last released its earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share for the quarter, beating analysts’ consensus estimates of $3.15 by $0.20. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. The business had revenue of $2.28 billion during the quarter, compared to the consensus estimate of $2.25 billion. During the same quarter in the prior year, the firm posted $3.67 EPS. The company’s revenue for the quarter was up 41.9% compared to the same quarter last year. 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, research analysts expect that Synopsys will post 10.65 EPS for the current year.

Insiders Place Their Bets

In other Synopsys news, CFO Shelagh Glaser sold 3,394 shares of the business’s stock in a transaction on 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 sale, the chief financial officer owned 14,358 shares in the company, valued at approximately $6,461,387.16. The trade was a 19.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through 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 company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the transaction, the chief executive officer owned 75,020 shares in the company, valued at approximately $34,431,179.20. The trade was a 16.29% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 0.56% of the company’s stock.

Institutional Investors Weigh In On Synopsys

A number of institutional investors and hedge funds have recently made changes to their positions in SNPS. Vanguard Group Inc. boosted its stake in Synopsys by 1.6% during the 4th quarter. Vanguard Group Inc. now owns 18,464,862 shares of the semiconductor company’s stock valued at $8,673,315,000 after purchasing an additional 283,677 shares during the last quarter. State Street Corp raised its stake in shares of Synopsys by 0.3% in the fourth quarter. State Street Corp now owns 8,788,890 shares of the semiconductor company’s stock worth $4,128,317,000 after purchasing an additional 28,532 shares during the last quarter. Morgan Stanley raised its stake in shares of Synopsys by 2.5% in the fourth quarter. Morgan Stanley now owns 4,573,980 shares of the semiconductor company’s stock worth $2,148,491,000 after purchasing an additional 109,917 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Synopsys by 1.3% in the fourth quarter. Geode Capital Management LLC now owns 4,310,846 shares of the semiconductor company’s stock valued at $2,017,256,000 after purchasing an additional 54,329 shares in the last quarter. Finally, Van ECK Associates Corp boosted its position in shares of Synopsys by 17.0% during the fourth quarter. Van ECK Associates Corp now owns 2,593,619 shares of the semiconductor company’s stock valued at $1,218,275,000 after buying an additional 376,711 shares during the last quarter. Institutional investors and hedge funds own 85.47% of the company’s stock.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Benchmark initiated coverage of Synopsys with a Buy rating, saying the company should benefit from rising AI demand, growing semiconductor design complexity, and solid long-term fundamentals. Benchmark initiates Synopsys, Cadence with Buy ratings on AI-driven EDA outlook
• Positive Sentiment: Recent commentary highlighted Synopsys as a key beneficiary of the AI chip-design boom, including the broader shortage of skilled chip-design engineers, which supports demand for EDA software. Chip design software dubbed a $3.7 billion opportunity: 2 stocks poised to benefit
• Positive Sentiment: Investors are still focused on Synopsys’ strategy to double down on higher-margin AI chip-design software, which could strengthen its competitive position over time. Why Synopsys (SNPS) Is Doubling Down on AI Chip Design Software to Strengthen Its Long-Term Competitive Advantage
• Neutral Sentiment: Synopsys is drawing heavy investor attention and remains a closely watched name, but this reflects interest rather than a clear new catalyst. Synopsys, Inc. (SNPS) is Attracting Investor Attention: Here is What You Should Know
• Negative Sentiment: SNPS has recently underperformed the broader market and some semiconductor peers, with traders appearing cautious despite the favorable AI narrative. Synopsys (SNPS) Dips More Than Broader Market: What You Should Know
• Negative Sentiment: Market comparison pieces also noted Synopsys has lagged competitors recently, suggesting some investor rotation away from the stock. Synopsys Inc. stock underperforms Tuesday when compared to competitors

About Synopsys

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.