Insider Selling: Synopsys (NASDAQ:SNPS) Insider Sells $574,882.88 in Stock

Synopsys, Inc. (NASDAQ:SNPS) insider Janet Lee sold 1,144 shares of Synopsys stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $502.52, for a total transaction of $574,882.88. Following the completion of the transaction, the insider directly owned 16,534 shares of the company’s stock, valued at $8,308,665.68. The trade was a 6.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Synopsys Price Performance

Shares of Synopsys stock traded down $2.50 during trading hours on Wednesday, reaching $502.67. The company’s stock had a trading volume of 1,631,983 shares, compared to its average volume of 2,036,859. The firm has a 50 day moving average price of $412.43 and a 200-day moving average price of $437.43. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.34 and a quick ratio of 1.24. The stock has a market cap of $96.33 billion, a P/E ratio of 88.81, a P/E/G ratio of 1.99 and a beta of 1.21. Synopsys, Inc. has a one year low of $362.55 and a one year high of $539.48.

Synopsys (NASDAQ:SNPS) last announced its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 EPS for the quarter, beating analysts’ consensus estimates of $3.67 by $0.24. The firm had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.44 billion. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The firm’s revenue for the quarter was up 42.4% compared to the same quarter last year. During the same quarter last year, the firm earned $3.39 EPS. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. On average, analysts predict that Synopsys, Inc. will post 10.97 EPS for the current year.

Synopsys announced that its board has initiated a stock repurchase plan on Monday, October 5th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the semiconductor company to purchase up to 1.1% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

Trending Headlines about Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: New AI chip-design alliances with OpenAI and Amazon reinforce Synopsys’ position as a key supplier of software used to design advanced AI semiconductors. The expanded Amazon relationship has been described as a potential $1 billion opportunity. Synopsys Is Up 17.7% After New AI Chip-Design Alliances With OpenAI And Amazon
• Positive Sentiment: Synopsys’ board authorized a $1 billion share-repurchase program, potentially covering about 1.1% of outstanding shares. Buybacks can support earnings per share and signal management believes the stock has long-term value. Stock Repurchase Program Declared by Synopsys
• Positive Sentiment: Recent commentary argues SNPS remains strategically important because AI chips generally require Synopsys software before reaching fabrication. Analysts and investors have also lifted fair-value estimates following the AI partnerships and Investor Day, suggesting the long-term growth outlook may offset concerns about acquisition debt and slower overall EDA growth. Synopsys Stock Fair Value Edges Higher After AI Deals And Investor Day
• Neutral Sentiment: Synopsys trades at a demanding valuation, with a price-to-earnings ratio near 89 and a PEG ratio near 2.0. A comparison with Progress Software highlights the debate over whether SNPS’ AI exposure justifies its premium relative to other software stocks. PRGS vs. SNPS: Which Stock Should Value Investors Buy Now?
• Negative Sentiment: CFO Sudhindra Kankanwadi sold a combined 12,170 shares for roughly $6.0 million across October 5 and 6, reducing his direct holdings by about 40%. Although insider sales do not necessarily indicate deteriorating fundamentals, the transactions may weigh on sentiment after the recent rally. Synopsys Insider Selling
• Negative Sentiment: One market analysis notes that SNPS shares have declined after several recent earnings beats, suggesting investor expectations are unusually high and that strong results may already be priced in. Synopsys Is Hot Again But a Pattern Has Emerged

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in SNPS. Sankala Group LLC bought a new stake in Synopsys during the 4th quarter valued at about $25,000. Elevation Wealth Partners LLC grew its stake in Synopsys by 96.4% in the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock worth $25,000 after acquiring an additional 27 shares in the last quarter. Osbon Capital Management LLC purchased a new position in shares of Synopsys during the second quarter worth approximately $25,000. IMG Wealth Management Inc. purchased a new position in shares of Synopsys during the second quarter worth approximately $28,000. Finally, Geneos Wealth Management Inc. raised its stake in shares of Synopsys by 151.5% during the first 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 in the last quarter. Hedge funds and other institutional investors own 85.47% of the company’s stock.

Analyst Upgrades and Downgrades

SNPS has been the topic of several recent research reports. Robert W. Baird upgraded Synopsys from a “neutral” rating to an “outperform” rating and increased their price target for the company from $558.00 to $560.00 in a report on Thursday, August 27th. Rosenblatt Securities boosted their price objective on shares of Synopsys from $575.00 to $620.00 and gave the company a “buy” rating in a research report on Thursday, October 1st. Barclays assumed coverage on shares of Synopsys in a research note on Friday, September 25th. They issued an “overweight” rating on the stock. Piper Sandler upgraded shares of Synopsys from a “neutral” rating to an “overweight” rating and raised their target price for the stock from $450.00 to $550.00 in a report on Tuesday, June 23rd. Finally, Zacks Research raised shares of Synopsys from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $584.11.

About Synopsys

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and software tools used to design, verify, and manufacture advanced electronic systems. Its solutions support the development of semiconductors, systems-on-chip, and electronic products across the design cycle, from initial specification and architecture through testing and production.

The company’s offerings include digital and custom integrated-circuit design tools, simulation and verification software, physical design and signoff products, and semiconductor IP such as processor cores, interface technologies, and foundational components.