Synopsys (NASDAQ:SNPS) Stock Price Down 9.8% – Here’s Why

Synopsys, Inc. (NASDAQ:SNPS) shares dropped 9.8% during mid-day trading on Friday . The company traded as low as $381.61 and last traded at $376.2020. 412,551 shares changed hands during mid-day trading, a decline of 79% from the average session volume of 1,998,862 shares. The stock had previously closed at $417.03.

Trending Headlines about Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Benchmark upgraded Synopsys (SNPS) to strong-buy, reinforcing a bullish long-term view on AI-driven demand for electronic design automation software. Zacks.com
• Positive Sentiment: Synopsys continues to have strong analyst support overall, with brokerage ratings averaging Moderate Buy and several recent price targets well above the current share price. American Banking News
• Neutral Sentiment: New commentary suggests the recent pullback may be a “buy the dip” opportunity, but that view is still based on technical support levels rather than a new fundamental catalyst. Trefis
• Negative Sentiment: SNPS is falling alongside a broader chip and tech selloff, which is weighing on sentiment across the semiconductor group. Benzinga
• Negative Sentiment: Investors are also worried about muted growth in Synopsys’s Design IP business and export-control headwinds, which may be limiting enthusiasm despite the earnings beat. Quiver Quantitative

Analysts Set New Price Targets

A number of brokerages have recently commented on SNPS. Stifel Nicolaus upped their price target on Synopsys from $550.00 to $600.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. Zacks Research upgraded shares of Synopsys from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, June 30th. Morgan Stanley upped their target price on shares of Synopsys from $480.00 to $525.00 and gave the company an “equal weight” rating in a research note on Thursday, May 28th. Berenberg Bank set a $633.00 price target on shares of Synopsys in a research report on Wednesday, May 27th. Finally, Needham & Company LLC restated a “buy” rating and set a $580.00 price objective on shares of Synopsys in a report on Thursday, May 28th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $570.06.

Synopsys Price Performance

The company has a market cap of $73.58 billion, a price-to-earnings ratio of 88.95, a price-to-earnings-growth ratio of 2.26 and a beta of 1.22. The company has a fifty day moving average price of $469.31 and a two-hundred day moving average price of $458.62. 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 released its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.15 by $0.20. The business had revenue of $2.28 billion for the quarter, compared to analysts’ expectations of $2.25 billion. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.Synopsys’s quarterly revenue was up 41.9% on a year-over-year basis. During the same period in the previous year, the business posted $3.67 earnings per share. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. As a group, equities research analysts anticipate that Synopsys, Inc. will post 10.65 EPS for the current fiscal year.

Insider Buying and Selling at Synopsys

In related news, CEO Sassine Ghazi sold 14,603 shares of the company’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $458.96, for a total value of $6,702,192.88. Following the sale, the chief executive officer owned 75,020 shares of the company’s stock, valued at $34,431,179.20. The trade was a 16.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 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 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 transaction, the chief financial officer directly owned 14,358 shares of the company’s stock, valued at $6,461,387.16. This trade represents a 19.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.56% of the company’s stock.

Institutional Investors Weigh In On Synopsys

Several large investors have recently modified their holdings of the stock. Sankala Group LLC bought a new position in shares of Synopsys during the 4th quarter worth approximately $25,000. Elevation Wealth Partners LLC boosted its stake in Synopsys by 96.4% in the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock valued at $25,000 after buying an additional 27 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. bought a new stake in Synopsys in the fourth quarter valued at $28,000. Caitong International Asset Management Co. Ltd bought a new stake in Synopsys in the fourth quarter valued at $28,000. Finally, IMG Wealth Management Inc. acquired a new position in Synopsys during the first quarter worth $30,000. 85.47% of the stock is currently owned by institutional investors.

Synopsys Company Profile

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.