Synopsys (NASDAQ:SNPS) Shares Gap Up – Should You Buy?

Synopsys, Inc. (NASDAQ:SNPS) gapped up prior to trading on Tuesday . The stock had previously closed at $496.18, but opened at $511.00. Synopsys shares last traded at $518.51, with a volume of 141,028 shares changing hands.

Analyst Ratings Changes

Several equities analysts recently weighed in on SNPS shares. Piper Sandler cut their price target on shares of Synopsys from $687.00 to $670.00 and set an “overweight” rating on the stock in a report on Thursday, October 24th. Berenberg Bank assumed coverage on shares of Synopsys in a report on Tuesday, October 15th. They set a “buy” rating and a $660.00 target price for the company. Needham & Company LLC reaffirmed a “buy” rating and issued a $640.00 price target on shares of Synopsys in a report on Tuesday, October 22nd. Mizuho initiated coverage on Synopsys in a research note on Tuesday, October 22nd. They set an “outperform” rating and a $650.00 price objective for the company. Finally, Rosenblatt Securities restated a “buy” rating and issued a $635.00 target price on shares of Synopsys in a research note on Friday, August 23rd. Twelve research analysts have rated the stock with a buy rating, Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $643.00.

Synopsys Trading Up 1.4 %

The company has a market cap of $82.40 billion, a price-to-earnings ratio of 55.65, a PEG ratio of 3.52 and a beta of 1.08. The business has a fifty day moving average of $506.07 and a two-hundred day moving average of $544.36.

Synopsys (NASDAQ:SNPS) last announced its earnings results on Wednesday, August 21st. The semiconductor company reported $3.43 earnings per share for the quarter, topping the consensus estimate of $3.28 by $0.15. Synopsys had a return on equity of 22.09% and a net margin of 24.06%. The business had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.52 billion. The business’s quarterly revenue was up 12.7% on a year-over-year basis. During the same period in the prior year, the company posted $2.17 EPS. On average, research analysts forecast that Synopsys, Inc. will post 9.45 EPS for the current fiscal year.

Insider Activity

In related news, CEO Sassine Ghazi sold 10,293 shares of the company’s stock in a transaction dated Friday, August 23rd. The shares were sold at an average price of $553.89, for a total transaction of $5,701,189.77. Following the completion of the transaction, the chief executive officer now owns 62,568 shares in the company, valued at $34,655,789.52. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.66% of the company’s stock.

Institutional Trading of Synopsys

Several large investors have recently made changes to their positions in SNPS. SeaCrest Wealth Management LLC acquired a new stake in shares of Synopsys in the first quarter valued at about $241,000. Norden Group LLC raised its holdings in Synopsys by 2,270.8% in the 1st quarter. Norden Group LLC now owns 10,811 shares of the semiconductor company’s stock valued at $6,178,000 after acquiring an additional 10,355 shares during the last quarter. Kovack Advisors Inc. lifted its stake in Synopsys by 2.3% in the 1st quarter. Kovack Advisors Inc. now owns 1,048 shares of the semiconductor company’s stock worth $599,000 after purchasing an additional 24 shares in the last quarter. ZRC Wealth Management LLC acquired a new position in shares of Synopsys during the 1st quarter worth approximately $40,000. Finally, Veracity Capital LLC grew its position in shares of Synopsys by 21.2% in the first quarter. Veracity Capital LLC now owns 897 shares of the semiconductor company’s stock valued at $513,000 after purchasing an additional 157 shares in the last quarter. 85.47% of the stock is currently owned by hedge funds and other institutional investors.

About Synopsys

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.