Synopsys, Inc. (NASDAQ:SNPS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Friday. The brokerage presently has a $90.00 price objective on the semiconductor company’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 12.00% from the stock’s current price.

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.”

Several other research analysts have also recently issued reports on SNPS. J P Morgan Chase & Co reiterated an “average” rating on shares of Synopsys in a report on Friday, May 26th. BidaskClub cut shares of Synopsys from a “strong-buy” rating to a “buy” rating in a report on Wednesday, July 5th. Credit Suisse Group reiterated a “positive” rating and issued a $90.00 price objective (up from $82.00) on shares of Synopsys in a report on Tuesday, August 15th. Needham & Company LLC reiterated a “buy” rating and issued a $83.00 price objective (up from $77.00) on shares of Synopsys in a report on Thursday, August 17th. Finally, Royal Bank Of Canada increased their price objective on shares of Synopsys from $85.00 to $90.00 and gave the company an “outperform” rating in a report on Thursday, August 17th. Three analysts have rated the stock with a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company. The stock presently has an average rating of “Buy” and an average target price of $83.88.

Synopsys (SNPS) traded up 0.37% during midday trading on Friday, hitting $80.36. The stock had a trading volume of 471,250 shares. The stock has a 50-day moving average price of $78.47 and a 200 day moving average price of $74.70. Synopsys has a 12-month low of $56.03 and a 12-month high of $81.57. The firm has a market cap of $12.07 billion, a P/E ratio of 37.73 and a beta of 0.99.

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

Synopsys announced that its board has approved a stock repurchase plan on Friday, June 16th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the semiconductor company to purchase up to 4.5% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board of directors believes its shares are undervalued.

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

Hedge funds have recently added to or reduced their stakes in the stock. Credit Suisse AG lifted its stake in Synopsys by 14.4% during the first quarter. Credit Suisse AG now owns 399,430 shares of the semiconductor company’s stock valued at $28,810,000 after purchasing an additional 50,214 shares during the last quarter. Shelton Capital Management acquired a new stake in Synopsys during the first quarter valued at approximately $821,000. Origin Asset Management LLP lifted its stake in Synopsys by 6.1% during the first quarter. Origin Asset Management LLP now owns 300,383 shares of the semiconductor company’s stock valued at $21,667,000 after purchasing an additional 17,183 shares during the last quarter. Morgan Stanley lifted its stake in Synopsys by 155.6% during the first quarter. Morgan Stanley now owns 1,081,104 shares of the semiconductor company’s stock valued at $77,979,000 after purchasing an additional 658,199 shares during the last quarter. Finally, AXA lifted its stake in Synopsys by 22.8% during the second quarter. AXA now owns 704,528 shares of the semiconductor company’s stock valued at $51,382,000 after purchasing an additional 130,700 shares during the last quarter. 88.94% of the stock is owned by institutional investors and hedge funds.

About Synopsys

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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