Synopsys (NASDAQ:SNPS) Releases FY 2025 Earnings Guidance

Synopsys (NASDAQ:SNPS) issued an update on its FY 2025 earnings guidance on Wednesday morning. The company provided EPS guidance of 15.110-15.190 for the period, compared to the consensus EPS estimate of 14.920. The company issued revenue guidance of $6.7 billion-$6.8 billion, compared to the consensus revenue estimate of $6.8 billion. Synopsys also updated its Q3 2025 guidance to 3.820-3.87 EPS.

Synopsys Trading Down 9.6%

NASDAQ:SNPS traded down $49.36 on Wednesday, reaching $462.43. The stock had a trading volume of 4,777,545 shares, compared to its average volume of 1,120,544. The company has a 50-day moving average of $453.18 and a 200 day moving average of $487.60. The stock has a market cap of $71.50 billion, a P/E ratio of 31.85, a price-to-earnings-growth ratio of 3.23 and a beta of 1.16. Synopsys has a 12-month low of $365.74 and a 12-month high of $624.80.

Analysts Set New Price Targets

SNPS has been the subject of a number of analyst reports. Rosenblatt Securities reissued a “buy” rating and issued a $660.00 price objective on shares of Synopsys in a research report on Tuesday, February 25th. Wells Fargo & Company reduced their price target on shares of Synopsys from $540.00 to $520.00 and set an “equal weight” rating on the stock in a research report on Thursday, February 27th. Mizuho reduced their price target on shares of Synopsys from $650.00 to $600.00 and set an “outperform” rating on the stock in a research report on Tuesday, April 15th. Morgan Stanley reduced their price target on shares of Synopsys from $625.00 to $590.00 and set an “overweight” rating on the stock in a research report on Monday, February 24th. Finally, Stifel Nicolaus set a $550.00 price target on shares of Synopsys in a research report on Monday, April 28th. One analyst has rated the stock with a hold rating and twelve have given a buy rating to the company’s stock. According to MarketBeat, Synopsys currently has an average rating of “Moderate Buy” and a consensus price target of $614.86.

Insiders Place Their Bets

In related news, CEO Sassine Ghazi sold 11,366 shares of the stock in a transaction dated Monday, March 3rd. The shares were sold at an average price of $463.75, for a total value of $5,270,982.50. Following the sale, the chief executive officer now owns 70,922 shares of the company’s stock, valued at $32,890,077.50. This trade represents a 13.81% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Geus Aart De sold 15,705 shares of the company’s stock in a transaction dated Thursday, March 6th. The stock was sold at an average price of $444.42, for a total transaction of $6,979,616.10. Following the completion of the transaction, the insider now owns 116,671 shares of the company’s stock, valued at approximately $51,850,925.82. This trade represents a 11.86% decrease in their position. The disclosure for this sale can be found here. 0.62% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Synopsys

Several hedge funds and other institutional investors have recently made changes to their positions in the business. NewEdge Advisors LLC boosted its position in shares of Synopsys by 15.1% during the first quarter. NewEdge Advisors LLC now owns 3,010 shares of the semiconductor company’s stock worth $1,291,000 after buying an additional 395 shares during the period. Integrated Wealth Concepts LLC boosted its position in shares of Synopsys by 11.6% during the first quarter. Integrated Wealth Concepts LLC now owns 760 shares of the semiconductor company’s stock worth $326,000 after buying an additional 79 shares during the period. Finally, Brighton Jones LLC boosted its position in shares of Synopsys by 5.7% during the fourth quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company’s stock worth $447,000 after buying an additional 50 shares during the period. 85.47% of the stock is currently owned by institutional investors and hedge funds.

About Synopsys

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.