Synopsys (NASDAQ:SNPS) Trading Down 5.4% on Insider Selling

Synopsys, Inc. (NASDAQ:SNPS) shares were down 5.4% on Tuesday following insider selling activity. The company traded as low as $421.17 and last traded at $416.0560. Approximately 347,224 shares were traded during trading, a decline of 83% from the average session volume of 1,987,778 shares. The stock had previously closed at $439.59.

Specifically, insider Geus Aart De sold 25,000 shares of the company’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $445.55, for a total transaction of $11,138,750.00. Following the transaction, the insider directly owned 120,421 shares of the company’s stock, valued at $53,653,576.55. This represents a 17.19% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

SNPS has been the subject of several recent analyst reports. Rosenblatt Securities reissued a “buy” rating and issued a $575.00 price target on shares of Synopsys in a report on Tuesday, August 25th. Benchmark reaffirmed a “buy” rating and issued a $570.00 price objective on shares of Synopsys in a research report on Thursday, August 27th. Piper Sandler upgraded shares of Synopsys from a “neutral” rating to an “overweight” rating and lifted their target price for the stock from $450.00 to $550.00 in a research note on Tuesday, June 23rd. Stifel Nicolaus boosted their target price on shares of Synopsys from $550.00 to $600.00 and gave the stock a “buy” rating in a research report on Thursday, May 28th. Finally, Wells Fargo & Company decreased their price target on shares of Synopsys from $535.00 to $450.00 and set an “equal weight” rating for the company in a report on Tuesday, August 11th. Twelve equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Synopsys presently has an average rating of “Moderate Buy” and a consensus price target of $561.28.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Analysts remain optimistic about Synopsys, with the consensus price target implying approximately 25.4% upside. Zacks noted that broad agreement among analysts raising earnings estimates may be a more useful bullish signal than the target price alone. Wall Street Analysts See a 25.39% Upside in Synopsys
• Positive Sentiment: Synopsys’ recent earnings momentum continues to support the bullish case: quarterly revenue rose 42.4% year over year to $2.48 billion, exceeding estimates, while EPS of $3.91 beat consensus by $0.24. Commentary also highlighted the company’s strong growth relative to its closest electronic design automation rival and potentially lower valuation multiple. The Market May Be Underestimating This AI Chip-Design Stock
• Positive Sentiment: Wall Street’s overall stance remains favorable. Synopsys has a “Moderate Buy” consensus rating, an average price target of $561.28, and recent support from Needham, Rosenblatt Securities and Robert W. Baird, which upgraded the stock to “outperform.” Is It Worth Investing in Synopsys Based on Wall Street’s Bullish Views?
• Neutral Sentiment: Executive Chair Aart de Geus sold 25,000 shares for approximately $11.1 million, reducing his position by 17.19%. Because the transaction was conducted under a pre-arranged Rule 10b5-1 plan, it may be less indicative of changing confidence in the company, although insider selling can still weigh on sentiment. Synopsys Insider Geus Aart De Sells 25,000 Shares
• Negative Sentiment: Semiconductor stocks broadly declined at the open as a global bond selloff pushed long-term yields higher. Rising yields can pressure high-multiple growth stocks such as Synopsys, which trades at an elevated earnings multiple. Semiconductor Stocks Slide as Global Bond Selloff Lifts Yields

Synopsys Trading Down 5.1%

The company’s fifty day moving average is $416.14 and its two-hundred day moving average is $440.15. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34. The company has a market cap of $79.95 billion, a price-to-earnings ratio of 73.55, a P/E/G ratio of 2.42 and a beta of 1.23.

Synopsys (NASDAQ:SNPS) last announced its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 EPS for the quarter, beating the consensus estimate of $3.67 by $0.24. The business had revenue of $2.48 billion during the quarter, compared to analysts’ expectations of $2.44 billion. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The business’s quarterly revenue was up 42.4% compared to the same quarter last year. During the same period in the previous year, the business 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. On average, research analysts anticipate that Synopsys, Inc. will post 11.03 EPS for the current year.

Institutional Investors Weigh In On Synopsys

Several hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of Synopsys in the 2nd quarter valued at about $7,228,099,000. State Street Corp grew its holdings in 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 during the period. Morgan Stanley raised its position in Synopsys by 2.5% during the fourth quarter. Morgan Stanley now owns 4,573,980 shares of the semiconductor company’s stock valued at $2,148,491,000 after acquiring an additional 109,917 shares in the last quarter. Geode Capital Management LLC lifted its holdings in Synopsys by 1.3% in the fourth quarter. Geode Capital Management LLC now owns 4,310,846 shares of the semiconductor company’s stock valued at $2,017,256,000 after acquiring an additional 54,329 shares during the period. Finally, Van ECK Associates Corp lifted its holdings in Synopsys by 19.7% in the second quarter. Van ECK Associates Corp now owns 3,457,249 shares of the semiconductor company’s stock valued at $1,542,175,000 after acquiring an additional 569,687 shares during the period. 85.47% of the stock is owned by hedge funds and other institutional investors.

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.