Rakuten Investment Management Inc. Takes Position in Synopsys, Inc. $SNPS

Rakuten Investment Management Inc. bought a new position in shares of Synopsys, Inc. (NASDAQ:SNPS) in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor bought 45,596 shares of the semiconductor company’s stock, valued at approximately $20,393,000.

A number of other institutional investors have also recently added to or reduced their stakes in SNPS. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Synopsys in the 2nd quarter worth approximately $747,400,000. Norges Bank purchased a new stake in Synopsys in the fourth quarter valued at $730,197,000. Man Group plc acquired a new stake in Synopsys during the second quarter worth about $55,900,000. SBI Okasan Asset Management Co.Ltd. acquired a new stake in shares of Synopsys during the 4th quarter worth approximately $1,699,000. Finally, Czech National Bank increased its holdings in Synopsys by 4.6% in the second quarter. Czech National Bank now owns 54,526 shares of the semiconductor company’s stock valued at $24,322,000 after buying an additional 2,421 shares in the last quarter. Institutional investors and hedge funds own 85.47% of the company’s stock.

Analyst Ratings Changes

SNPS has been the subject of a number of recent analyst reports. Weiss Ratings upgraded Synopsys from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday. UBS Group set a $570.00 price objective on shares of Synopsys in a report on Thursday. KeyCorp reiterated an “overweight” rating on shares of Synopsys in a report on Wednesday, August 19th. Needham & Company LLC reaffirmed a “buy” rating and set a $580.00 price target on shares of Synopsys in a research report on Thursday. Finally, Robert W. Baird upgraded Synopsys from a “neutral” rating to an “outperform” rating and lifted their target price for the company from $558.00 to $560.00 in a research report on Thursday. Twelve research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $561.28.

Synopsys News Roundup

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Strong Q3 performance: Synopsys reported adjusted earnings of $3.91 per share versus expectations of $3.67, while revenue reached $2.48 billion, up 42.4% year over year and ahead of estimates. Strength in electronic design automation (EDA) and the Ansys acquisition supported the results. SNPS Q3 Earnings Beat Estimates on EDA and Ansys Strength
• Positive Sentiment: Higher outlook and AI momentum: Management raised fiscal 2026 guidance, citing accelerating EDA demand, recovering Design IP activity, interest in agentic AI and additional opportunities from integrating Ansys. Fiscal 2026 EPS guidance is $15.04–$15.10, with revenue guidance reportedly raised to approximately $9.72 billion. SNPS Q3 Earnings Call Highlights EDA Acceleration, Outlook Raised
• Positive Sentiment: Analyst and strategic support: Goldman Sachs, Benchmark and Needham reaffirmed Buy ratings, with price targets ranging from $570 to $600. Elliott Investment Management also reportedly built a multibillion-dollar position, betting Synopsys can narrow its discount to peers. Elliott Bets Multibillion-Dollar Position on Closing Synopsys’ Peer Discount
• Neutral Sentiment: Commentators view Synopsys as a key supplier to major technology companies, including Nvidia, and believe Ansys has strengthened its competitive moat; however, the acquisition’s full contribution depends on successful integration and future synergies. SNPS in Right Place, Right Time?
• Negative Sentiment: Valuation and peer concerns: Following the earnings rally, investors are refocusing on valuation, with Synopsys trading at a high earnings multiple. A comparison with PDF Solutions also highlighted stronger growth and margin improvement at the smaller rival, potentially limiting near-term enthusiasm for SNPS. SNPS vs. PDFS: Which Semiconductor Software Stock Has an Edge?

Synopsys Stock Performance

Shares of SNPS stock opened at $442.61 on Friday. Synopsys, Inc. has a 12 month low of $366.00 and a 12 month high of $615.79. The company has a market cap of $84.82 billion, a P/E ratio of 78.20, a PEG ratio of 2.73 and a beta of 1.23. The company has a current ratio of 1.34, a quick ratio of 1.32 and a debt-to-equity ratio of 0.29. The firm has a fifty day moving average price of $416.64 and a 200 day moving average price of $440.13.

Synopsys (NASDAQ:SNPS) last issued its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, topping the consensus estimate of $3.67 by $0.24. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The business had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.44 billion. During the same quarter last year, the company earned $3.39 EPS. The business’s quarterly revenue was up 42.4% on a year-over-year basis. 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, Inc. will post 10.64 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Sassine Ghazi sold 14,603 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $458.96, for a total value of $6,702,192.88. Following the completion of the sale, the chief executive officer directly owned 75,020 shares of the company’s stock, valued at $34,431,179.20. This represents a 16.29% decrease in their position. The sale was disclosed in a document filed 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. 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 that occurred on Friday, June 12th. The shares were sold at an average price of $450.02, for a total value of $1,527,367.88. Following the completion of the sale, the chief financial officer directly owned 14,358 shares of the company’s stock, valued at $6,461,387.16. The trade was a 19.12% 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. 0.56% of the stock is currently owned by insiders.

Synopsys 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.