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

Benchmark upgraded shares of Synopsys (NASDAQ:SNPS) to a strong-buy rating in a research note published on Wednesday,Zacks.com reports.

A number of other analysts have also commented on SNPS. Robert W. Baird set a $558.00 price objective on shares of Synopsys in a research report on Thursday, May 28th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Synopsys in a research report on Monday, June 8th. Needham & Company LLC reiterated a “buy” rating and issued a $580.00 price target on shares of Synopsys in a research note on Thursday, May 28th. Zacks Research raised shares of Synopsys from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, June 30th. Finally, BNP Paribas Exane increased their price objective on shares of Synopsys from $425.00 to $450.00 and gave the stock an “underperform” rating in a research note on Thursday, May 28th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Synopsys currently has a consensus rating of “Moderate Buy” and a consensus price target of $570.06.

Synopsys Stock Down 1.9%

Shares of Synopsys stock opened at $417.03 on Wednesday. The business’s 50 day simple moving average is $471.95 and its 200 day simple moving average is $459.14. Synopsys has a 52-week low of $376.18 and a 52-week high of $651.73. The firm has a market cap of $79.85 billion, a PE ratio of 96.53, a P/E/G ratio of 2.50 and a beta of 1.22. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.32 and a current ratio of 1.43.

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

Insider Activity at Synopsys

In related news, CFO Shelagh Glaser sold 3,394 shares of the firm’s stock in a transaction 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 transaction, the chief financial officer directly owned 14,358 shares of the company’s stock, valued at approximately $6,461,387.16. This trade represents a 19.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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 business’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 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 0.56% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Sankala Group LLC bought a new stake in shares of Synopsys in the 4th quarter valued at about $25,000. Elevation Wealth Partners LLC grew its holdings in Synopsys by 96.4% during the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 27 shares during the period. Thurston Springer Miller Herd & Titak Inc. bought a new position in Synopsys during the fourth quarter worth about $28,000. Caitong International Asset Management Co. Ltd acquired a new position in Synopsys during the fourth quarter worth approximately $28,000. Finally, IMG Wealth Management Inc. acquired a new position in Synopsys during the first quarter worth approximately $30,000. Institutional investors own 85.47% of the company’s stock.

Key Headlines Impacting Synopsys

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.