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

Synopsys, Inc. (NASDAQ:SNPS) has received an average rating of “Moderate Buy” from the eighteen research firms that are presently covering the company, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $570.0588.

Several analysts have weighed in on SNPS shares. BNP Paribas Exane lifted their target price on Synopsys from $425.00 to $450.00 and gave the company an “underperform” rating in a research note on Thursday, May 28th. Bank of America lifted their price objective on shares of Synopsys from $515.00 to $600.00 and gave the company a “buy” rating in a research note on Thursday, May 28th. Benchmark initiated coverage on shares of Synopsys in a research report on Wednesday. They issued a “buy” rating and a $570.00 target price for the company. Berenberg Bank set a $633.00 price target on shares of Synopsys in a research report on Wednesday, May 27th. Finally, Piper Sandler raised shares of Synopsys from a “neutral” rating to an “overweight” rating and upped their price target for the stock from $450.00 to $550.00 in a research note on Tuesday, June 23rd.

Synopsys Price Performance

Shares of NASDAQ:SNPS opened at $417.03 on Friday. The firm’s 50 day moving average is $471.95 and its two-hundred day moving average is $459.14. Synopsys has a 52 week low of $376.18 and a 52 week high of $651.73. The firm has a market capitalization of $79.85 billion, a P/E ratio of 96.53, a PEG ratio of 2.50 and a beta of 1.22. The company has a current ratio of 1.43, a quick ratio of 1.32 and a debt-to-equity ratio of 0.33.

Synopsys (NASDAQ:SNPS) last issued its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.15 by $0.20. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The business had revenue of $2.28 billion during the quarter, compared to the consensus estimate of $2.25 billion. During the same period in the previous year, the firm posted $3.67 earnings per share. The business’s revenue was up 41.9% on a year-over-year basis. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. Analysts anticipate that Synopsys will post 10.65 earnings per share for the current year.

Trending Headlines about Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Benchmark initiated coverage of Synopsys with a Buy rating, saying the company should benefit from rising AI demand, growing semiconductor design complexity, and solid long-term fundamentals. Benchmark initiates Synopsys, Cadence with Buy ratings on AI-driven EDA outlook
• Positive Sentiment: Recent commentary highlighted Synopsys as a key beneficiary of the AI chip-design boom, including the broader shortage of skilled chip-design engineers, which supports demand for EDA software. Chip design software dubbed a $3.7 billion opportunity: 2 stocks poised to benefit
• Positive Sentiment: Investors are still focused on Synopsys’ strategy to double down on higher-margin AI chip-design software, which could strengthen its competitive position over time. Why Synopsys (SNPS) Is Doubling Down on AI Chip Design Software to Strengthen Its Long-Term Competitive Advantage
• Neutral Sentiment: Synopsys is drawing heavy investor attention and remains a closely watched name, but this reflects interest rather than a clear new catalyst. Synopsys, Inc. (SNPS) is Attracting Investor Attention: Here is What You Should Know
• Negative Sentiment: SNPS has recently underperformed the broader market and some semiconductor peers, with traders appearing cautious despite the favorable AI narrative. Synopsys (SNPS) Dips More Than Broader Market: What You Should Know
• Negative Sentiment: Market comparison pieces also noted Synopsys has lagged competitors recently, suggesting some investor rotation away from the stock. Synopsys Inc. stock underperforms Tuesday when compared to competitors

Insiders Place Their Bets

In related news, CEO Sassine Ghazi sold 14,603 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the completion of the transaction, the chief executive officer owned 75,020 shares of the company’s stock, valued at $34,431,179.20. This trade represents a 16.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Shelagh Glaser sold 3,394 shares of the business’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the completion of the sale, the chief financial officer owned 14,358 shares in the company, valued at approximately $6,461,387.16. This trade represents a 19.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.56% of the company’s stock.

Institutional Trading of Synopsys

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Sowell Financial Services LLC increased its holdings in shares of Synopsys by 2.0% in the fourth quarter. Sowell Financial Services LLC now owns 1,056 shares of the semiconductor company’s stock valued at $496,000 after buying an additional 21 shares in the last quarter. Natural Investments LLC raised its position in shares of Synopsys by 4.6% during the fourth quarter. Natural Investments LLC now owns 482 shares of the semiconductor company’s stock worth $226,000 after purchasing an additional 21 shares during the period. Financial Management Professionals Inc. lifted its holdings in shares of Synopsys by 7.0% during the fourth quarter. Financial Management Professionals Inc. now owns 335 shares of the semiconductor company’s stock valued at $157,000 after purchasing an additional 22 shares during the last quarter. Foronjy Financial LLC boosted its position in shares of Synopsys by 5.2% in the 4th quarter. Foronjy Financial LLC now owns 446 shares of the semiconductor company’s stock valued at $210,000 after purchasing an additional 22 shares during the period. Finally, Barden Capital Management Inc. increased its stake in Synopsys by 1.2% in the 4th quarter. Barden Capital Management Inc. now owns 1,868 shares of the semiconductor company’s stock worth $877,000 after purchasing an additional 23 shares in the last quarter. 85.47% of the stock is owned by institutional investors and hedge funds.

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.