Wells Fargo & Company Cuts Synopsys (NASDAQ:SNPS) Price Target to $450.00

Synopsys (NASDAQ:SNPS) had its price objective lowered by Wells Fargo & Company from $535.00 to $450.00 in a research report released on Tuesday, MarketBeat reports. The brokerage currently has an equal weight rating on the semiconductor company’s stock.

Other analysts have also recently issued reports about the stock. Rosenblatt Securities increased their target price on shares of Synopsys from $530.00 to $575.00 and gave the stock a “buy” rating in a research note on Tuesday, May 26th. Benchmark initiated coverage on shares of Synopsys in a report on Wednesday, July 15th. They issued a “buy” rating and a $570.00 price target on the stock. Stifel Nicolaus increased their price objective on Synopsys from $550.00 to $600.00 and gave the stock a “buy” rating in a research report on Thursday, May 28th. Berenberg Bank set a $633.00 price objective on Synopsys in a research note on Wednesday, May 27th. Finally, Citigroup boosted their target price on Synopsys from $600.00 to $610.00 and gave the stock a “buy” rating in a research report on Thursday, May 28th. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Synopsys currently has an average rating of “Moderate Buy” and an average target price of $565.06.

Synopsys Stock Down 0.1%

SNPS stock opened at $411.75 on Tuesday. The company has a quick ratio of 1.32, a current ratio of 1.43 and a debt-to-equity ratio of 0.33. The firm has a market capitalization of $78.84 billion, a PE ratio of 95.31, a PEG ratio of 2.42 and a beta of 1.23. Synopsys has a twelve month low of $366.00 and a twelve month high of $626.24. The stock has a 50-day simple moving average of $426.49 and a two-hundred day simple moving average of $443.50.

Synopsys (NASDAQ:SNPS) last announced its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $2.28 billion for the quarter, compared to the consensus estimate of $2.25 billion. During the same period in the prior year, the firm posted $3.67 earnings per share. The company’s revenue for the quarter 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. On average, equities analysts predict that Synopsys will post 10.65 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Sassine Ghazi sold 14,603 shares of the firm’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the sale, the chief executive officer owned 75,020 shares in the company, valued at approximately $34,431,179.20. This trade represents a 16.29% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed 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 Synopsys stock in a transaction on Friday, June 12th. The stock was sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the sale, the chief financial officer directly owned 14,358 shares of the company’s stock, valued at $6,461,387.16. This represents a 19.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.56% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Synopsys

A number of hedge funds and other institutional investors have recently modified their holdings of SNPS. Vanguard Group Inc. lifted its position in Synopsys by 1.6% in the 4th quarter. Vanguard Group Inc. now owns 18,464,862 shares of the semiconductor company’s stock worth $8,673,315,000 after buying an additional 283,677 shares during the last quarter. BlackRock Inc. bought a new position in Synopsys during the second quarter valued at approximately $7,228,099,000. State Street Corp raised its stake in shares of Synopsys by 0.3% during the fourth quarter. State Street Corp now owns 8,788,890 shares of the semiconductor company’s stock worth $4,128,317,000 after acquiring an additional 28,532 shares in the last quarter. Morgan Stanley raised its stake in shares of Synopsys by 2.5% during the fourth quarter. Morgan Stanley now owns 4,573,980 shares of the semiconductor company’s stock worth $2,148,491,000 after acquiring an additional 109,917 shares in the last quarter. Finally, Geode Capital Management LLC lifted its holdings in shares of Synopsys by 1.3% in the 4th quarter. Geode Capital Management LLC now owns 4,310,846 shares of the semiconductor company’s stock worth $2,017,256,000 after acquiring an additional 54,329 shares during the last quarter. 85.47% of the stock is currently owned by hedge funds and other institutional investors.

Key Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys’ AI initiatives across chip design, verification and simulation could improve customer productivity and reinforce its position in the semiconductor software market. This supports the long-term growth case, particularly as demand for AI chips expands. Can SNPS Leverage AI to Accelerate Chip Design and Drive Growth?
• Positive Sentiment: Recent coverage remains bullish on Synopsys’ potential to reach $650, citing approximately 42% revenue growth, raised guidance and the completed $35 billion acquisition. However, the price target is speculative and depends on investors assigning greater value to the company’s growth prospects. Prediction: Synopsys Will Hit $650 on This Date
• Positive Sentiment: Strength in memory and storage stocks, along with continued investor demand for semiconductor-focused ETFs, indicates that enthusiasm for AI and the broader chip ecosystem remains supportive for Synopsys’ electronic-design-automation business. Memory Stocks Stay Strong With SanDisk, SK Hynix, and Western Digital Leading the Storage Stack
• Neutral Sentiment: General Counsel Janet Lee is leaving the role but transitioning to an advisory position. The orderly handoff may limit disruption, although leadership changes can create near-term uncertainty. Synopsys Announces General Counsel Janet Lee’s Departure and Advisory Role Transition
• Negative Sentiment: Wells Fargo lowered its expectations for Synopsys’ stock, which can weigh on sentiment and reinforce concerns that the shares’ valuation does not yet reflect the company’s growth potential. Wells Fargo Has Lowered Expectations for Synopsys Stock Price
• Negative Sentiment: Fidelity’s warning that the semiconductor cycle may be nearing a peak introduces a broader sector risk. If chip spending or AI-related enthusiasm cools, high-growth suppliers such as Synopsys could face valuation pressure despite solid fundamentals. Semiconductor Flows Stay Sticky Despite Cycle-Peak Warning

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.