Synopsys, Inc. (NASDAQ:SNPS) Stock Has Consensus Price Target of $561.00

Shares of Synopsys, Inc. (NASDAQ:SNPS) have received an average recommendation of “Moderate Buy” from the twenty-two research firms that are presently covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and seventeen have given a buy rating to the company. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $584.11.

Several equities research analysts recently weighed in on the company. Roth Capital raised Synopsys to a “buy” rating in a report on Friday, September 25th. UBS Group set a $570.00 price objective on shares of Synopsys in a report on Thursday, August 27th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $640.00 target price on shares of Synopsys in a research note on Thursday. Rosenblatt Securities upped their price target on shares of Synopsys from $575.00 to $620.00 and gave the company a “buy” rating in a research note on Thursday. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $580.00 price objective on shares of Synopsys in a research note on Thursday, August 27th.

Synopsys Trading Up 12.8%

NASDAQ:SNPS opened at $490.54 on Friday. Synopsys has a 12 month low of $362.55 and a 12 month high of $539.48. 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 firm’s 50 day moving average is $405.69 and its 200 day moving average is $436.03. The stock has a market capitalization of $94.01 billion, a PE ratio of 86.67, a price-to-earnings-growth ratio of 2.38 and a beta of 1.21.

Synopsys (NASDAQ:SNPS) last announced its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, beating the consensus estimate of $3.67 by $0.24. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The business had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.44 billion. During the same period in the prior year, the company earned $3.39 earnings per share. Synopsys’s revenue was up 42.4% compared to the same quarter last year. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. Sell-side analysts expect that Synopsys will post 10.97 earnings per share for the current year.

Synopsys News Summary

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Above-consensus fiscal 2027 outlook: Synopsys forecast revenue of approximately $11.1 billion to $11.2 billion and non-GAAP EPS of $19.04 to $19.12, exceeding consensus estimates of roughly $10.8 billion in revenue and $16.78 EPS. Management also presented long-term targets reflecting accelerating growth and expanding operating margins. Synopsys fiscal 2027 revenue target
• Positive Sentiment: OpenAI partnership strengthens the AI narrative: Synopsys and OpenAI will develop “GPT-Synopsys,” a specialized AI model for semiconductor engineering. OpenAI will license Synopsys’ electronic-design-automation tools, while the companies will collaborate on research, commercialization and shared revenue opportunities. OpenAI and Synopsys GPT-Synopsys partnership
• Positive Sentiment: Large AWS agreement adds visibility: Amazon Web Services signed a multiyear custom-silicon IP agreement valued at more than $1 billion. The arrangement includes Synopsys’ silicon IP, AI-powered engineering software and a license-plus-royalty model, potentially supporting recurring revenue as Amazon’s chip-production volumes grow. Synopsys AWS licensing agreement
• Positive Sentiment: Analyst sentiment improved: Deutsche Bank raised its price target to $640, while Rosenblatt increased its target to $620 and retained a Buy rating. Reports also said Bank of America and KeyBanc lifted targets after the Investor Day presentation. Deutsche Bank raises Synopsys price target
• Neutral Sentiment: Unusually heavy call-option activity accompanied the move, with call purchases running well above average, indicating heightened bullish speculation but also potentially greater short-term volatility.
• Negative Sentiment: Synopsys remains valued at a relatively high earnings multiple, so the stock’s strong reaction leaves it sensitive to any disappointment in AI adoption, deal execution or the company’s ambitious long-term targets.

Insider Buying and Selling at Synopsys

In related news, insider Aart de Geus sold 25,000 shares of the business’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $441.76, for a total transaction of $11,044,000.00. Following the sale, the insider directly owned 120,421 shares in the company, valued at approximately $53,197,180.96. The trade was a 17.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,604 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $374.88, for a total value of $5,474,747.52. Following the completion of the transaction, the chief executive officer owned 76,865 shares of the company’s stock, valued at approximately $28,815,151.20. This represents a 15.97% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 89,245 shares of company stock valued at $37,992,919. 0.56% of the stock is owned by company insiders.

Institutional Trading of Synopsys

Several institutional investors and hedge funds have recently bought and sold shares of SNPS. Sankala Group LLC purchased a new stake in shares of Synopsys in the fourth quarter worth $25,000. Elevation Wealth Partners LLC boosted its position in shares of Synopsys by 96.4% during the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock valued at $25,000 after acquiring an additional 27 shares during the last quarter. Osbon Capital Management LLC purchased a new position in shares of Synopsys during the second quarter worth about $25,000. IMG Wealth Management Inc. purchased a new position in shares of Synopsys during the second quarter worth about $28,000. Finally, Phillip James Consulting Co. purchased a new position in shares of Synopsys during the fourth quarter worth about $36,000. 85.47% of the stock is currently owned by hedge funds and other institutional investors.

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.