Synopsys, Inc. (NASDAQ:SNPS) Given Average Rating of “Moderate Buy” by Brokerages

Shares of Synopsys, Inc. (NASDAQ:SNPS) have earned a consensus recommendation of “Moderate Buy” from the eighteen brokerages that are covering the firm, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation, six have assigned a hold recommendation and eleven have given a buy recommendation to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $562.1333.

Several equities research analysts have weighed in on the stock. Stifel Nicolaus cut their target price on shares of Synopsys from $650.00 to $550.00 and set a “buy” rating on the stock in a report on Wednesday, September 10th. The Goldman Sachs Group lowered their price objective on shares of Synopsys from $700.00 to $600.00 and set a “buy” rating for the company in a research report on Wednesday, September 10th. Rosenblatt Securities raised Synopsys from a “neutral” rating to a “buy” rating and dropped their price objective for the stock from $605.00 to $560.00 in a research note on Tuesday, December 9th. Needham & Company LLC lifted their target price on Synopsys from $550.00 to $580.00 and gave the stock a “buy” rating in a report on Thursday, December 11th. Finally, JPMorgan Chase & Co. boosted their target price on Synopsys from $600.00 to $650.00 and gave the company an “overweight” rating in a research note on Thursday, December 11th.

Synopsys Price Performance

Shares of SNPS opened at $475.47 on Wednesday. The stock has a market cap of $88.32 billion, a P/E ratio of 59.51, a price-to-earnings-growth ratio of 4.00 and a beta of 1.16. Synopsys has a 1 year low of $365.74 and a 1 year high of $651.73. The stock’s 50-day moving average price is $435.49 and its two-hundred day moving average price is $504.13. The company has a current ratio of 1.62, a quick ratio of 1.52 and a debt-to-equity ratio of 0.48.

Synopsys (NASDAQ:SNPS) last announced its quarterly earnings results on Wednesday, December 10th. The semiconductor company reported $2.90 EPS for the quarter, beating analysts’ consensus estimates of $2.79 by $0.11. Synopsys had a return on equity of 7.89% and a net margin of 18.89%.The company had revenue of $2.25 billion during the quarter, compared to analysts’ expectations of $2.25 billion. During the same period in the prior year, the business posted $3.40 EPS. Synopsys’s revenue was up 37.8% on a year-over-year basis. Synopsys has set its FY 2026 guidance at 14.320-14.400 EPS and its Q1 2026 guidance at 3.520-3.580 EPS. On average, equities analysts predict that Synopsys will post 10.64 earnings per share for the current year.

Insider Buying and Selling at Synopsys

In related news, CFO Shelagh Glaser sold 3,657 shares of the business’s stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $460.77, for a total value of $1,685,035.89. Following the completion of the transaction, the chief financial officer directly owned 17,842 shares in the company, valued at approximately $8,221,058.34. The trade was a 17.01% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.62% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the stock. AIA Group Ltd boosted its stake in shares of Synopsys by 31.3% during the 3rd quarter. AIA Group Ltd now owns 31,410 shares of the semiconductor company’s stock worth $15,497,000 after buying an additional 7,493 shares during the last quarter. Keel Point LLC increased its position in shares of Synopsys by 69.3% in the third quarter. Keel Point LLC now owns 958 shares of the semiconductor company’s stock valued at $473,000 after acquiring an additional 392 shares during the last quarter. Mirabella Financial Services LLP raised its holdings in Synopsys by 129.2% during the third quarter. Mirabella Financial Services LLP now owns 5,632 shares of the semiconductor company’s stock worth $2,773,000 after acquiring an additional 3,175 shares in the last quarter. FNY Investment Advisers LLC boosted its position in Synopsys by 249.2% during the third quarter. FNY Investment Advisers LLC now owns 1,732 shares of the semiconductor company’s stock valued at $854,000 after purchasing an additional 1,236 shares during the last quarter. Finally, New Mexico Educational Retirement Board boosted its position in Synopsys by 16.4% during the third quarter. New Mexico Educational Retirement Board now owns 8,326 shares of the semiconductor company’s stock valued at $4,108,000 after purchasing an additional 1,176 shares during the last quarter. Institutional investors own 85.47% of the company’s stock.

Synopsys News Roundup

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Large institutional buying and supportive analyst coverage that point to continuing demand and a median Wall Street target near $570 — a constructive backdrop for longer‑term holders. Read More.
• Positive Sentiment: Long‑term performance narrative — analyses showing strong 10–15 year total returns for SNPS can attract buy‑and‑hold investors and support valuation multiples. Read More.
• Neutral Sentiment: Market chatter about a reported $2 billion Nvidia investment into Synopsys is creating optimism around AI/chip‑design synergies — the story is influential if confirmed but remains unverified rumor‑level for now. Read More.
• Negative Sentiment: Multiple law firms have filed or publicized securities‑class action notices alleging violations tied to a sharp post‑September decline; lead‑plaintiff deadlines around Dec. 30 raise near‑term headline and litigation risk that can pressure the stock and increase uncertainty for investors. Read More.
• Negative Sentiment: Insider selling: CFO Shelagh Glaser sold 3,657 shares on Dec. 19 (~$460.77 avg), reducing her position ~17% — routine insider sales can nonetheless be interpreted negatively when paired with active litigation headlines. Read More.

About Synopsys

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.