Synopsys (NASDAQ:SNPS) Hits New 1-Year Low – What’s Next?

Synopsys, Inc. (NASDAQ:SNPS) shares hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $364.72 and last traded at $363.6980, with a volume of 1178567 shares changing hands. The stock had previously closed at $381.43.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. BNP Paribas Exane increased their price target on Synopsys from $425.00 to $450.00 and gave the stock an “underperform” rating in a report on Thursday, May 28th. Mizuho lowered their price objective on shares of Synopsys from $600.00 to $550.00 and set an “outperform” rating for the company in a research note on Thursday, August 27th. Needham & Company LLC reiterated a “buy” rating and set a $580.00 target price on shares of Synopsys in a research report on Thursday, August 27th. Wells Fargo & Company raised shares of Synopsys from an “equal weight” rating to an “overweight” rating and increased their target price for the stock from $450.00 to $475.00 in a research note on Thursday, September 10th. Finally, Citigroup raised their price target on shares of Synopsys from $600.00 to $610.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. Thirteen investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $562.67.

Synopsys Stock Performance

The firm has a market cap of $73.09 billion, a P/E ratio of 67.31, a PEG ratio of 2.02 and a beta of 1.23. The company has a current ratio of 1.34, a quick ratio of 1.24 and a debt-to-equity ratio of 0.29. The company’s 50-day moving average is $403.58 and its two-hundred day moving average is $436.79.

Synopsys (NASDAQ:SNPS) last issued its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 EPS for the quarter, topping analysts’ consensus estimates of $3.67 by $0.24. The firm had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.44 billion. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The company’s revenue for the quarter was up 42.4% on a year-over-year basis. During the same period in the previous year, the company posted $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. As a group, equities analysts predict that Synopsys, Inc. will post 10.97 EPS for the current fiscal year.

Insider Buying and Selling at Synopsys

In other news, CEO Sassine Ghazi sold 14,604 shares of the stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $374.88, for a total value of $5,474,747.52. Following the completion of the sale, the chief executive officer owned 76,865 shares in the company, valued at $28,815,151.20. This represents a 15.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Aart de Geus sold 24,641 shares of the firm’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $419.44, for a total transaction of $10,335,421.04. Following the transaction, the insider directly owned 120,443 shares in the company, valued at $50,518,611.92. The trade was a 16.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 89,245 shares of company stock valued at $37,992,919. Company insiders own 0.56% of the company’s stock.

Institutional Trading of Synopsys

Hedge funds have recently bought and sold shares of the business. Sankala Group LLC bought a new stake in shares of Synopsys during the 4th quarter worth $25,000. Elevation Wealth Partners LLC grew its position in Synopsys by 96.4% during the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock valued at $25,000 after buying an additional 27 shares during the period. Osbon Capital Management LLC purchased a new stake in Synopsys during the second quarter worth about $25,000. IMG Wealth Management Inc. purchased a new stake in Synopsys during the second quarter worth about $28,000. Finally, Geneos Wealth Management Inc. raised its position in Synopsys by 151.5% in the first quarter. Geneos Wealth Management Inc. now owns 83 shares of the semiconductor company’s stock worth $33,000 after acquiring an additional 50 shares during the period. 85.47% of the stock is currently owned by institutional investors.

About Synopsys

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and related services. Its products help semiconductor and electronics companies design, verify, test and manufacture integrated circuits and complex electronic systems.

The company’s EDA portfolio includes tools for digital and analog design, simulation, verification, physical implementation, signoff and manufacturing preparation. Synopsys also provides reusable semiconductor IP, including processor cores, interface technologies, embedded memories and security-related components, which customers can incorporate into system-on-chip designs.

Synopsys additionally offers software integrity and application security solutions that help organizations identify and manage vulnerabilities and risks in the software development lifecycle.