Insider Selling: Synopsys (NASDAQ:SNPS) CFO Sells $1,454,340.00 in Stock

Synopsys, Inc. (NASDAQ:SNPS) CFO Sudhindra Kankanwadi sold 3,000 shares of the business’s stock in a transaction on Monday, October 5th. The shares were sold at an average price of $484.78, for a total transaction of $1,454,340.00. Following the sale, the chief financial officer directly owned 22,717 shares in the company, valued at approximately $11,012,747.26. This trade represents a 11.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.

Sudhindra Kankanwadi also recently made the following trade(s):

• On Tuesday, October 6th, Sudhindra Kankanwadi sold 9,170 shares of Synopsys stock. The shares were sold at an average price of $500.00, for a total value of $4,585,000.00.

Synopsys Stock Performance

Shares of Synopsys stock opened at $497.75 on Friday. Synopsys, Inc. has a 12 month low of $362.55 and a 12 month high of $539.48. The company has a quick ratio of 1.24, a current ratio of 1.34 and a debt-to-equity ratio of 0.29. The stock has a market cap of $95.39 billion, a PE ratio of 87.94, a price-to-earnings-growth ratio of 2.05 and a beta of 1.21. The business has a fifty day simple moving average of $417.52 and a 200-day simple moving average of $438.50.

Synopsys (NASDAQ:SNPS) last posted its quarterly earnings results 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. The firm 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%.Synopsys’s quarterly revenue was up 42.4% on a year-over-year basis. During the same period in the previous year, the firm earned $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 anticipate that Synopsys, Inc. will post 10.97 EPS for the current fiscal year.

Synopsys declared that its Board of Directors has authorized a share repurchase plan on Monday, October 5th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the semiconductor company to reacquire up to 1.1% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Synopsys

Several hedge funds have recently modified their holdings of SNPS. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Synopsys during the second quarter worth $747,400,000. Man Group plc bought a new position in shares of Synopsys in the second quarter valued at about $55,900,000. Nykredit A S acquired a new position in Synopsys during the 2nd quarter worth about $23,158,000. Bank of America Corp DE acquired a new position in Synopsys during the 2nd quarter worth about $539,986,000. Finally, Integrated Wealth Concepts LLC lifted its position in Synopsys by 88.6% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 6,816 shares of the semiconductor company’s stock worth $3,040,000 after buying an additional 3,202 shares in the last quarter. 85.47% of the stock is owned by institutional investors.

Synopsys News Summary

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys remains a major beneficiary of rising AI-chip complexity. Recent commentary highlights its electronic-design-automation software as increasingly essential for chip design and verification, while partnerships involving OpenAI, Amazon and Nvidia could support long-term growth. Nvidia partner receives strong-buy endorsement
• Positive Sentiment: The board authorized a roughly $1 billion share-repurchase program, representing as much as 1.1% of outstanding shares. Buybacks could support earnings per share and signal management’s confidence in the company’s valuation. Synopsys stock repurchase program
• Positive Sentiment: Synopsys recently exceeded quarterly expectations, reporting $3.91 in earnings per share versus a $3.67 consensus estimate and $2.48 billion in revenue versus $2.44 billion expected. Revenue increased 42.4% year over year, reinforcing the AI-driven growth narrative.
• Neutral Sentiment: Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $584.11. However, targets range widely, reflecting disagreement over how much of Synopsys’ AI opportunity is already priced into the stock. Can Synopsys stock drop from here?
• Negative Sentiment: The stock’s premium valuation—roughly 88 times earnings—leaves it vulnerable to profit-taking if growth expectations soften. Commentary also cites acquisition-related debt of approximately $10 billion and signs of moderating EDA growth as risks. Synopsys AI chip-design market analysis
• Negative Sentiment: Insider selling is adding to near-term pressure. CFO Sudhindra Kankanwadi sold 12,170 shares for about $6.04 million across two transactions, while Janet Lee sold 1,144 shares worth roughly $575,000. These sales do not necessarily indicate deteriorating fundamentals but may weaken sentiment.
• Negative Sentiment: A report that Synopsys plans to explore working with Chinese AI laboratories introduces potential export-control and geopolitical concerns, even though such cooperation could expand its addressable market. Synopsys exploring work with Chinese AI labs

Wall Street Analysts Forecast Growth

SNPS has been the subject of several research reports. Benchmark restated a “buy” rating and set a $570.00 price target on shares of Synopsys in a report on Thursday, August 27th. Wells Fargo & Company increased their target price on shares of Synopsys from $475.00 to $540.00 and gave the stock an “overweight” rating in a research report on Thursday, October 1st. UBS Group set a $570.00 target price on shares of Synopsys in a research note on Thursday, August 27th. Needham & Company LLC reaffirmed a “buy” rating and issued a $580.00 price target on shares of Synopsys in a research note on Thursday, August 27th. Finally, Weiss Ratings lowered Synopsys from a “hold (c)” rating to a “hold (c-)” rating in a report on Friday, September 11th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Synopsys has a consensus rating of “Moderate Buy” and an average target price of $584.11.

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.