Synopsys, Inc. (NASDAQ:SNPS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Thursday.

According to Zacks, “Synopsys is a vendor of electronic design automation (EDA) software to the semiconductor and electronics industries. Shares of Synopsys has outperformed the industry over the past one year. Synopsys recently completed the buyout of a privately-held self-funded company, QuantumWise. We believe that the company’s sustained focus on introducing new products, acquisitions and deal wins will continue to boost results, going ahead. Moreover, unique intellectual properties and global support provided by the company will likely drive its forthcoming results. Furthermore, Synopsys’ strategy to return wealth to shareholders highlights its growth potential and stable liquidity position. However, competition from peers, a challenging technology spending environment and uncertainty regarding the exact time of realizing acquisition synergies keep us on the side-lines.”

A number of other analysts have also commented on the stock. HSBC Holdings plc reissued an “average” rating on shares of Synopsys in a research report on Thursday, September 14th. Credit Suisse Group restated an “outperform” rating on shares of Synopsys in a report on Thursday, August 31st. Royal Bank Of Canada boosted their target price on shares of Synopsys from $85.00 to $90.00 and gave the stock an “outperform” rating in a report on Thursday, August 17th. Needham & Company LLC restated a “buy” rating and set a $83.00 target price (up from $77.00) on shares of Synopsys in a report on Thursday, August 17th. Finally, BidaskClub upgraded shares of Synopsys from a “buy” rating to a “strong-buy” rating in a report on Thursday, August 17th. Four investment analysts have rated the stock with a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and an average target price of $83.38.

Shares of Synopsys (NASDAQ:SNPS) traded down 0.63% on Thursday, hitting $80.19. 136,855 shares of the stock traded hands. Synopsys has a 52 week low of $56.03 and a 52 week high of $81.57. The firm has a market capitalization of $12.05 billion, a PE ratio of 37.65 and a beta of 0.99. The firm’s 50 day moving average is $78.47 and its 200 day moving average is $74.70.

Synopsys (NASDAQ:SNPS) last announced its quarterly earnings data on Wednesday, August 16th. The semiconductor company reported $0.92 EPS for the quarter, hitting the Zacks’ consensus estimate of $0.92. The business had revenue of $695.40 million for the quarter, compared to analyst estimates of $691.22 million. Synopsys had a net margin of 12.37% and a return on equity of 11.60%. The firm’s revenue for the quarter was up 13.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.76 earnings per share. On average, analysts expect that Synopsys will post $3.31 EPS for the current fiscal year.

Synopsys declared that its Board of Directors has authorized a share buyback program on Friday, June 16th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the semiconductor company to repurchase up to 4.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its shares are undervalued.

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In other Synopsys news, CEO Chi-Foon Chan sold 3,750 shares of the company’s stock in a transaction on Friday, August 18th. The shares were sold at an average price of $77.50, for a total value of $290,625.00. Following the transaction, the chief executive officer now directly owns 200,429 shares in the company, valued at $15,533,247.50. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Joseph W. Logan sold 5,000 shares of the company’s stock in a transaction on Friday, August 18th. The shares were sold at an average price of $76.99, for a total transaction of $384,950.00. Following the completion of the transaction, the executive vice president now owns 63,793 shares in the company, valued at $4,911,423.07. The disclosure for this sale can be found here. 1.82% of the stock is owned by insiders.

Several large investors have recently added to or reduced their stakes in SNPS. BlackRock Inc. increased its holdings in shares of Synopsys by 3,273.6% in the first quarter. BlackRock Inc. now owns 12,796,224 shares of the semiconductor company’s stock valued at $922,991,000 after purchasing an additional 12,416,921 shares during the last quarter. Janus Henderson Group PLC increased its holdings in shares of Synopsys by 14,458.8% in the second quarter. Janus Henderson Group PLC now owns 3,226,957 shares of the semiconductor company’s stock valued at $235,342,000 after purchasing an additional 3,204,792 shares during the last quarter. Vanguard Group Inc. increased its holdings in shares of Synopsys by 21.6% in the first quarter. Vanguard Group Inc. now owns 15,031,207 shares of the semiconductor company’s stock valued at $1,084,201,000 after purchasing an additional 2,672,954 shares during the last quarter. State Street Corp increased its holdings in shares of Synopsys by 19.9% in the first quarter. State Street Corp now owns 7,240,263 shares of the semiconductor company’s stock valued at $522,251,000 after purchasing an additional 1,201,269 shares during the last quarter. Finally, AJO LP increased its holdings in shares of Synopsys by 132.1% in the second quarter. AJO LP now owns 1,449,128 shares of the semiconductor company’s stock valued at $105,685,000 after purchasing an additional 824,879 shares during the last quarter. Hedge funds and other institutional investors own 88.94% of the company’s stock.

Synopsys Company Profile

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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