Synopsys (NASDAQ:SNPS) Stock Price Expected to Rise, Needham & Company LLC Analyst Says

Synopsys (NASDAQ:SNPS) had its price target upped by research analysts at Needham & Company LLC from $580.00 to $620.00 in a research note issued to investors on Monday, Marketbeat.com reports. The firm currently has a “buy” rating on the semiconductor company’s stock. Needham & Company LLC’s price objective would suggest a potential upside of 25.38% from the stock’s previous close.

A number of other research firms also recently issued reports on SNPS. Barclays assumed coverage on shares of Synopsys in a research report on Friday, September 25th. They issued an “overweight” rating for the company. Wells Fargo & Company boosted their price target on shares of Synopsys from $475.00 to $540.00 and gave the company an “overweight” rating in a report on Thursday, October 1st. Piper Sandler raised shares of Synopsys from a “neutral” rating to an “overweight” rating and upped their price target for the stock from $450.00 to $550.00 in a research note on Tuesday, June 23rd. Rosenblatt Securities increased their price objective on Synopsys from $575.00 to $620.00 and gave the stock a “buy” rating in a report on Thursday, October 1st. Finally, Benchmark reiterated a “buy” rating and set a $570.00 price objective on shares of Synopsys in a report on Thursday, August 27th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, Synopsys has a consensus rating of “Moderate Buy” and an average price target of $571.78.

Synopsys Trading Down 1.6%

NASDAQ:SNPS opened at $494.51 on Monday. The stock has a market cap of $94.77 billion, a PE ratio of 51.07, a price-to-earnings-growth ratio of 2.05 and a beta of 1.21. Synopsys has a fifty-two week low of $362.55 and a fifty-two week high of $539.48. 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’s 50-day moving average is $423.97 and its two-hundred day moving average is $440.26.

Synopsys (NASDAQ:SNPS) last posted its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.67 by $0.24. The business had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.44 billion. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The firm’s revenue was up 42.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.39 earnings per share. 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 research analysts forecast that Synopsys will post 10.97 earnings per share for the current fiscal year.

Synopsys declared that its board has approved a share repurchase program on Monday, October 5th that permits the company to buy back $1.00 billion in outstanding shares. This repurchase authorization permits the semiconductor company to purchase up to 1.1% of its shares through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at Synopsys

In other Synopsys news, CFO Sudhindra Kankanwadi sold 9,170 shares of Synopsys stock in a transaction that occurred on Tuesday, October 6th. The shares were sold at an average price of $500.00, for a total value of $4,585,000.00. Following the completion of the sale, the chief financial officer directly owned 22,717 shares in the company, valued at $11,358,500. The trade was a 28.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Sassine Ghazi sold 14,604 shares of Synopsys stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $374.88, for a total transaction of $5,474,747.52. Following the completion of the sale, the chief executive officer owned 76,865 shares of the company’s stock, valued at $28,815,151.20. This trade represents a 15.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 102,559 shares of company stock worth $44,607,141 in the last ninety days. Insiders own 0.56% of the company’s stock.

Institutional Investors Weigh In On Synopsys

Several institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new position in shares of Synopsys in the 2nd quarter valued at approximately $7,228,099,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Synopsys in the 2nd quarter worth approximately $747,400,000. Bank of New York Mellon Corp bought a new stake in Synopsys during the second quarter worth approximately $692,074,000. Bank of America Corp DE bought a new stake in Synopsys during the second quarter worth approximately $539,986,000. Finally, Legal & General Group Plc bought a new stake in Synopsys during the second quarter worth approximately $491,923,000. Institutional investors and hedge funds own 85.47% of the company’s stock.

Synopsys Company Profile

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.