Synopsys Inc. (SNPS) Upgraded by Zacks Investment Research to “Strong-Buy”
Synopsys Inc. (NASDAQ:SNPS) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued on Tuesday. The brokerage presently has a $69.00 price target on the stock. Zacks Investment Research’s target price would indicate a potential upside of 15.48% from the company’s current price.
According to Zacks, “Synopsys offers electronic design automation (EDA) software to the semiconductor and electronics industries. Estimates for the company have not moved around much of late. We are positive that the company’s recent product launches, acquisitions and deal wins will boost results, going forward. Moreover, the unique intellectual properties and global support provided by Synopsys will likely drive forthcoming results. The company has a good cash reserve that is necessary for funding further acquisitions. Additionally, the company’s acquisitions such as Gold Standard Simulations, Simpleware and Coverity will expand its capabilities as well as customer base. Furthermore, we believe the company’s aggressive share buyback policy will further boost investors’ confidence, thereby driving up the stock price, going forward.”
Several other equities research analysts have also recently issued reports on SNPS. DA Davidson raised their price target on shares of Synopsys from $60.00 to $64.00 and gave the stock a “buy” rating in a research note on Thursday, August 18th. Needham & Company LLC raised their price target on shares of Synopsys from $54.00 to $60.00 and gave the stock a “buy” rating in a research note on Thursday, August 18th. Benchmark Co. raised their price target on shares of Synopsys from $50.00 to $60.00 and gave the stock a “hold” rating in a research note on Thursday, August 18th. Pacific Crest raised their price target on shares of Synopsys from $60.00 to $64.00 and gave the stock an “overweight” rating in a research note on Thursday, August 18th. Finally, KeyCorp raised their price target on shares of Synopsys from $60.00 to $64.00 and gave the stock an “overweight” rating in a research note on Thursday, August 18th. Two research analysts have rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus target price of $63.67.
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Synopsys (NASDAQ:SNPS) opened at 60.27 on Tuesday. Synopsys has a 12-month low of $39.26 and a 12-month high of $61.36. The firm has a 50 day moving average of $59.22 and a 200-day moving average of $53.94. The stock has a market cap of $9.12 billion, a PE ratio of 38.44 and a beta of 0.89.
Synopsys (NASDAQ:SNPS) last released its quarterly earnings results on Wednesday, August 17th. The company reported $0.76 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.74 by $0.02. Synopsys had a net margin of 10.27% and a return on equity of 12.15%. The company had revenue of $615.20 million for the quarter, compared to analysts’ expectations of $602.89 million. During the same period last year, the company earned $0.63 EPS. The firm’s revenue for the quarter was up 10.7% compared to the same quarter last year. On average, analysts expect that Synopsys will post $3.02 earnings per share for the current year.
In related news, CEO Chi-Foon Chan sold 2,000 shares of the firm’s stock in a transaction that occurred on Friday, August 19th. The shares were sold at an average price of $58.23, for a total value of $116,460.00. Following the transaction, the chief executive officer now owns 193,935 shares in the company, valued at $11,292,835.05. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Alfred Castino sold 10,000 shares of the firm’s stock in a transaction that occurred on Monday, September 12th. The shares were sold at an average price of $58.44, for a total transaction of $584,400.00. Following the completion of the transaction, the director now owns 27,982 shares in the company, valued at approximately $1,635,268.08. The disclosure for this sale can be found here. 1.62% of the stock is currently owned by corporate insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Creative Planning raised its position in Synopsys by 17.2% in the third quarter. Creative Planning now owns 1,884 shares of the company’s stock valued at $112,000 after buying an additional 276 shares during the last quarter. Mizuho Asset Management Co. Ltd. raised its stake in Synopsys by 43.0% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 1,963 shares of the company’s stock worth $106,000 after buying an additional 590 shares in the last quarter. Advisor Group Inc. purchased a new stake in Synopsys during the second quarter worth about $130,000. Invictus RG raised its stake in Synopsys by 751.3% in the first quarter. Invictus RG now owns 2,869 shares of the company’s stock worth $139,000 after buying an additional 2,532 shares in the last quarter. Finally, Peddock Capital Advisors LLC purchased a new stake in Synopsys during the third quarter worth about $203,000. Hedge funds and other institutional investors own 90.98% of the company’s stock.
Synopsys, Inc provides software, intellectual property (IP) and services. The Company supplies the electronic design automation (EDA) software that engineers use to design and test integrated circuits, also known as chips. It also offers IP products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves.
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