Synopsys (NASDAQ:SNPS) Stock Price Down 9.8% – Should You Sell?

Synopsys, Inc. (NASDAQ:SNPS) fell 9.8% during trading on Friday . The company traded as low as $381.61 and last traded at $376.2020. 412,551 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 1,998,862 shares. The stock had previously closed at $417.03.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Benchmark upgraded Synopsys to Strong Buy and initiated/maintained a constructive view on the company’s long-term prospects, citing AI-driven demand and strong fundamentals for electronic design automation software. Why Is Synopsys Stock Falling on Friday?
• Positive Sentiment: Synopsys delivered fiscal Q2 revenue of $2.28 billion and non-GAAP EPS of $3.35, both ahead of expectations, and raised full-year revenue and earnings guidance, showing the business is still growing strongly. Synopsys Slides Despite Q2 Beat as Investors Focus on IP Weakness and Valuation
• Neutral Sentiment: Synopsys remains a closely watched stock with a generally favorable brokerage view, including an average rating of “Moderate Buy,” which suggests analysts still see upside despite recent volatility. Synopsys, Inc. Receives Average Rating of Moderate Buy from Brokerages
• Negative Sentiment: Investors are focusing on weakness in Synopsys’ Design IP segment, muted growth expectations for that business, and concerns about valuation after a strong run, which is fueling a sell-the-news reaction. Synopsys Slides Despite Q2 Beat as Investors Focus on IP Weakness and Valuation

Wall Street Analyst Weigh In

SNPS has been the subject of a number of research analyst reports. Robert W. Baird set a $558.00 price objective on shares of Synopsys in a report on Thursday, May 28th. Zacks Research raised shares of Synopsys from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, June 30th. Needham & Company LLC reiterated a “buy” rating and issued a $580.00 price target on shares of Synopsys in a report on Thursday, May 28th. BNP Paribas Exane boosted their price target 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. Finally, KeyCorp reissued an “overweight” rating on shares of Synopsys in a report on Thursday, May 28th. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $570.06.

Synopsys Stock Performance

The business’s fifty day moving average is $471.95 and its two-hundred day moving average is $459.14. The stock has a market capitalization of $73.27 billion, a PE ratio of 88.72, a price-to-earnings-growth ratio of 2.50 and a beta of 1.22. The company has a quick ratio of 1.32, a current ratio of 1.43 and a debt-to-equity ratio of 0.33.

Synopsys (NASDAQ:SNPS) last released its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.15 by $0.20. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. The company had revenue of $2.28 billion for the quarter, compared to the consensus estimate of $2.25 billion. During the same quarter in the prior year, the firm earned $3.67 earnings per share. Synopsys’s revenue was up 41.9% on a year-over-year basis. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. As a group, research analysts anticipate that Synopsys, Inc. will post 10.65 EPS for the current fiscal year.

Insider Activity

In other Synopsys news, CEO Sassine Ghazi sold 14,603 shares of the business’s stock in a transaction that occurred 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 sale, the chief executive officer directly owned 75,020 shares of the company’s stock, valued at $34,431,179.20. The trade was a 16.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 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. Also, CFO Shelagh Glaser sold 3,394 shares of the business’s stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $450.02, for a total value of $1,527,367.88. Following the sale, the chief financial officer directly owned 14,358 shares in the company, valued at $6,461,387.16. The trade was a 19.12% 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. 0.56% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Synopsys

Several institutional investors have recently modified their holdings of the stock. Crossmark Global Holdings Inc. increased its position in shares of Synopsys by 13.6% during the 2nd quarter. Crossmark Global Holdings Inc. now owns 10,508 shares of the semiconductor company’s stock valued at $4,687,000 after purchasing an additional 1,258 shares during the last quarter. Riversedge Advisors LLC purchased a new position in Synopsys during the second quarter worth $298,000. Union Bancaire Privee UBP SA boosted its stake in Synopsys by 28.4% during the second quarter. Union Bancaire Privee UBP SA now owns 23,105 shares of the semiconductor company’s stock worth $9,656,000 after buying an additional 5,115 shares during the period. Aaron Wealth Advisors LLC increased its position in Synopsys by 3.5% during the second quarter. Aaron Wealth Advisors LLC now owns 1,556 shares of the semiconductor company’s stock valued at $694,000 after acquiring an additional 53 shares during the last quarter. Finally, MBL Wealth LLC bought a new position in Synopsys during the second quarter valued at $277,000. 85.47% of the stock is owned by institutional investors.

Synopsys Company Profile

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.