Synopsys (NASDAQ:SNPS) Shares Cross Below 200-Day Moving Average – What’s Next?

Synopsys, Inc. (NASDAQ:SNPS) shares crossed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $442.57 and traded as low as $436.50. Synopsys shares last traded at $440.31, with a volume of 2,777,137 shares changing hands.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Rothschild & Co Redburn raised its price target to $615 from $550, signaling a more optimistic outlook from the firm. Rothschild & Co Redburn adjusts Synopsys price target
• Positive Sentiment: Marvell adopted Synopsys’ Galaxy platform for high-performance communications products, providing a customer and product-use win for the company’s chip-design tools. Marvell adopts Synopsys Galaxy platform
• Positive Sentiment: Synopsys expanded access to advanced chip-design capabilities through the European Chips Design Platform, supporting broader reach for its design tools. Synopsys expands access through European Chips Design Platform
• Neutral Sentiment: The company said it will report fourth-quarter and fiscal-year 2026 results after market close on December 8. The announcement sets the next major event for investors but provides no new financial results. Synopsys announces fourth-quarter and fiscal-year 2026 earnings date
• Negative Sentiment: A Yahoo Finance article notes that Synopsys trades at a premium to cash flow, which may make the stock more vulnerable to selling if investors question its valuation. Synopsys stock trades at a premium to cash flow
• Negative Sentiment: Synopsys fell more than the broader market in the latest session, though the report describes the decline rather than identifying a specific cause. Synopsys dips more than the broader market

Analyst Upgrades and Downgrades

SNPS has been the topic of a number of recent research reports. Robert W. Baird upgraded shares of Synopsys from a “neutral” rating to an “outperform” rating and upped their target price for the stock from $558.00 to $560.00 in a research note on Thursday, August 27th. Mizuho decreased their price target 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. Sanford C. Bernstein assumed coverage on shares of Synopsys in a report on Friday, September 25th. They set an “outperform” rating for the company. Needham & Company LLC boosted their price target on shares of Synopsys from $580.00 to $620.00 and gave the stock a “buy” rating in a report on Monday, October 12th. Finally, UBS Group set a $570.00 price objective on shares of Synopsys in a research report on Thursday, August 27th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $575.00.

Synopsys Stock Down 4.9%

The firm has a 50-day moving average price of $441.90 and a two-hundred day moving average price of $442.57. The firm has a market cap of $84.38 billion, a price-to-earnings ratio of 77.79, a price-to-earnings-growth ratio of 1.47 and a beta of 1.18. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34.

Synopsys (NASDAQ:SNPS) last announced its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.67 by $0.24. The firm had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.44 billion. Synopsys had a return on equity of 6.24% and a net margin of 11.43%. The firm’s quarterly revenue was up 42.4% compared to the same quarter last year. During the same period in the prior year, the company posted $3.39 earnings per share. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. On average, sell-side analysts forecast that Synopsys, Inc. will post 11.01 earnings per share for the current year.

Synopsys announced that its Board of Directors has authorized a stock repurchase program on Monday, October 5th that authorizes the company to repurchase $1 billion in outstanding shares. This buyback authorization authorizes the semiconductor company to purchase up to 1.1% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its shares are undervalued.

Insider Activity at Synopsys

In other news, CFO Sudhindra Kankanwadi sold 9,170 shares of the company’s stock in a transaction on Tuesday, October 6th. The shares were sold at an average price of $500.00, for a total value of $4,585,000.00. Following the completion of the transaction, the chief financial officer owned 22,717 shares in the company, valued at approximately $11,358,500. This represents a 28.76% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Aart de Geus sold 25,000 shares of the stock in a transaction on Monday, August 31st. The shares were sold at an average price of $441.76, for a total transaction of $11,044,000.00. Following the completion of the transaction, the insider directly owned 120,421 shares in the company, valued at $53,197,180.96. This trade represents a 17.19% 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. In the last quarter, insiders have sold 117,163 shares of company stock worth $51,366,457. Corporate insiders own 0.56% of the company’s stock.

Hedge Funds Weigh In On Synopsys

Several hedge funds have recently made changes to their positions in SNPS. Elevation Wealth Partners LLC grew its stake in Synopsys by 96.4% during the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock worth $25,000 after buying an additional 27 shares during the last quarter. Osbon Capital Management LLC acquired a new position in Synopsys during the second quarter worth approximately $25,000. IMG Wealth Management Inc. purchased a new stake in Synopsys in the second quarter valued at approximately $28,000. GK Wealth Management LLC purchased a new stake in Synopsys in the third quarter valued at approximately $28,000. Finally, EFG International AG purchased a new stake in Synopsys in the second quarter valued at approximately $34,000. Hedge funds and other institutional investors own 85.47% of the company’s stock.

About Synopsys

Synopsys, Inc is an electronic design automation (EDA) and semiconductor intellectual property company serving the global semiconductor and electronics industries. Its software helps engineers design, verify, test and manufacture advanced integrated circuits and electronic systems.

The company’s products and services support digital and analog design, functional verification, design-for-test, manufacturing and semiconductor engineering workflows. Synopsys also provides reusable semiconductor IP, including processor cores, interface technologies, security solutions and other components used in system-on-chip designs.

In addition to its semiconductor design offerings, Synopsys provides software development and application security tools intended to help organizations identify and manage vulnerabilities and risks across the software development lifecycle.