Synopsys (NASDAQ:SNPS) Posts Quarterly Earnings Results, Misses Estimates By $0.89 EPS

Synopsys (NASDAQ:SNPS) issued its earnings results on Wednesday. The semiconductor company reported $1.90 earnings per share for the quarter, missing analysts’ consensus estimates of $2.79 by ($0.89), Zacks reports. Synopsys had a return on equity of 10.82% and a net margin of 31.04%.

Synopsys Trading Up 2.3%

Shares of Synopsys stock traded up $10.59 on Wednesday, hitting $476.44. The stock had a trading volume of 2,374,678 shares, compared to its average volume of 1,877,311. The stock has a 50 day moving average of $436.17 and a 200 day moving average of $504.88. The firm has a market capitalization of $88.50 billion, a P/E ratio of 37.40, a PEG ratio of 5.34 and a beta of 1.16. Synopsys has a twelve month low of $365.74 and a twelve month high of $651.73. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.51 and a current ratio of 1.62.

Insider Activity at Synopsys

In related news, CAO Sudhindra Kankanwadi sold 9,873 shares of the firm’s stock in a transaction on Monday, September 22nd. The stock was sold at an average price of $500.90, for a total transaction of $4,945,385.70. Following the completion of the transaction, the chief accounting officer directly owned 20,520 shares of the company’s stock, valued at $10,278,468. This trade represents a 32.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Robert G. Painter bought 350 shares of the business’s stock in a transaction on Thursday, September 11th. The shares were bought at an average cost of $425.44 per share, for a total transaction of $148,904.00. Following the completion of the acquisition, the director directly owned 2,291 shares in the company, valued at approximately $974,683.04. This trade represents a 18.03% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.62% of the company’s stock.

Institutional Investors Weigh In On Synopsys

Large investors have recently bought and sold shares of the stock. State Street Corp boosted its holdings in Synopsys by 20.6% in the third quarter. State Street Corp now owns 8,760,358 shares of the semiconductor company’s stock worth $4,322,273,000 after acquiring an additional 1,493,912 shares in the last quarter. Northern Trust Corp boosted its position in Synopsys by 22.5% in the third quarter. Northern Trust Corp now owns 1,986,970 shares of the semiconductor company’s stock worth $980,351,000 after purchasing an additional 364,541 shares during the last quarter. Invesco Ltd. grew its stake in Synopsys by 17.2% in the 3rd quarter. Invesco Ltd. now owns 1,885,761 shares of the semiconductor company’s stock valued at $930,416,000 after purchasing an additional 276,983 shares during the period. Amundi boosted its holdings in shares of Synopsys by 14.1% in the 3rd quarter. Amundi now owns 1,104,888 shares of the semiconductor company’s stock worth $528,380,000 after buying an additional 136,504 shares during the last quarter. Finally, Bank of America Corp DE boosted its holdings in shares of Synopsys by 31.6% in the 2nd quarter. Bank of America Corp DE now owns 898,612 shares of the semiconductor company’s stock worth $460,701,000 after buying an additional 215,721 shares during the last quarter. 85.47% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on SNPS shares. Wells Fargo & Company cut their target price on shares of Synopsys from $550.00 to $445.00 and set an “equal weight” rating for the company in a research note on Tuesday, November 25th. Mizuho reduced their target price on Synopsys from $700.00 to $600.00 and set an “outperform” rating for the company in a research note on Thursday, September 11th. Needham & Company LLC lowered their price target on shares of Synopsys from $660.00 to $550.00 and set a “buy” rating on the stock in a report on Wednesday, September 10th. Wall Street Zen downgraded Synopsys from a “hold” rating to a “sell” rating in a research report on Saturday, September 13th. Finally, JPMorgan Chase & Co. lowered their target price on Synopsys from $685.00 to $600.00 and set an “overweight” rating on the stock in a research note on Wednesday, September 10th. Eleven equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Synopsys has a consensus rating of “Moderate Buy” and a consensus price target of $550.67.

Synopsys Company Profile

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.