Rakuten Investment Management Inc. Buys New Position in Synopsys, Inc. $SNPS

Rakuten Investment Management Inc. purchased a new stake in Synopsys, Inc. (NASDAQ:SNPS) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm purchased 45,596 shares of the semiconductor company’s stock, valued at approximately $20,393,000.

A number of other large investors have also modified their holdings of the business. North Star Asset Management Inc. acquired a new position in shares of Synopsys during the second quarter valued at about $29,075,000. Empowered Funds LLC acquired a new stake in Synopsys in the 2nd quarter worth approximately $12,238,000. United Capital Financial Advisors LLC purchased a new stake in Synopsys during the 2nd quarter worth approximately $2,819,000. Equitable Holdings Inc. purchased a new stake in Synopsys during the 2nd quarter worth approximately $975,000. Finally, Centaurus Financial Inc. acquired a new position in Synopsys during the 2nd quarter valued at approximately $795,000. Hedge funds and other institutional investors own 85.47% of the company’s stock.

Synopsys Stock Down 4.8%

Shares of SNPS stock opened at $442.61 on Friday. The stock has a 50 day moving average of $416.64 and a 200 day moving average of $440.13. The company has a current ratio of 1.34, a quick ratio of 1.32 and a debt-to-equity ratio of 0.29. The stock has a market cap of $84.82 billion, a P/E ratio of 78.20, a P/E/G ratio of 2.73 and a beta of 1.23. Synopsys, Inc. has a twelve month low of $366.00 and a twelve month high of $615.79.

Synopsys (NASDAQ:SNPS) last released its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 EPS for the quarter, topping the consensus estimate of $3.67 by $0.24. The business had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.44 billion. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The business’s quarterly revenue was up 42.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $3.39 EPS. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. As a group, sell-side analysts expect that Synopsys, Inc. will post 10.64 EPS for the current year.

Insider Buying and Selling at Synopsys

In related news, CFO Shelagh Glaser sold 3,394 shares of the stock in a transaction on Friday, June 12th. The shares were 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 approximately $6,461,387.16. This represents a 19.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 represents a 16.29% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 0.56% of the company’s stock.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Strong Q3 performance: Synopsys reported adjusted earnings of $3.91 per share versus expectations of $3.67, while revenue reached $2.48 billion, up 42.4% year over year and ahead of estimates. Strength in electronic design automation (EDA) and the Ansys acquisition supported the results. SNPS Q3 Earnings Beat Estimates on EDA and Ansys Strength
• Positive Sentiment: Higher outlook and AI momentum: Management raised fiscal 2026 guidance, citing accelerating EDA demand, recovering Design IP activity, interest in agentic AI and additional opportunities from integrating Ansys. Fiscal 2026 EPS guidance is $15.04–$15.10, with revenue guidance reportedly raised to approximately $9.72 billion. SNPS Q3 Earnings Call Highlights EDA Acceleration, Outlook Raised
• Positive Sentiment: Analyst and strategic support: Goldman Sachs, Benchmark and Needham reaffirmed Buy ratings, with price targets ranging from $570 to $600. Elliott Investment Management also reportedly built a multibillion-dollar position, betting Synopsys can narrow its discount to peers. Elliott Bets Multibillion-Dollar Position on Closing Synopsys’ Peer Discount
• Neutral Sentiment: Commentators view Synopsys as a key supplier to major technology companies, including Nvidia, and believe Ansys has strengthened its competitive moat; however, the acquisition’s full contribution depends on successful integration and future synergies. SNPS in Right Place, Right Time?
• Negative Sentiment: Valuation and peer concerns: Following the earnings rally, investors are refocusing on valuation, with Synopsys trading at a high earnings multiple. A comparison with PDF Solutions also highlighted stronger growth and margin improvement at the smaller rival, potentially limiting near-term enthusiasm for SNPS. SNPS vs. PDFS: Which Semiconductor Software Stock Has an Edge?

Analysts Set New Price Targets

SNPS has been the topic of a number of research analyst reports. Berenberg Bank set a $633.00 price objective on shares of Synopsys in a report on Wednesday, May 27th. Morgan Stanley reduced their target price on Synopsys from $525.00 to $500.00 and set an “equal weight” rating for the company in a research note on Wednesday, August 19th. Needham & Company LLC reaffirmed a “buy” rating and set a $580.00 price target on shares of Synopsys in a research report on Thursday. Bank of America boosted their price target on Synopsys from $515.00 to $600.00 and gave the company a “buy” rating in a research note on Thursday, May 28th. Finally, Mizuho cut their price objective on Synopsys from $600.00 to $550.00 and set an “outperform” rating on the stock in a report on Thursday. Twelve analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Synopsys currently has a consensus rating of “Moderate Buy” and an average target price of $561.28.

Synopsys 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.