Synopsys (NASDAQ:SNPS) Sets New 1-Year Low – Time to Sell?

Shares of Synopsys, Inc. (NASDAQ:SNPS) hit a new 52-week low on Saturday . The company traded as low as $366.00 and last traded at $384.27, with a volume of 5035714 shares traded. The stock had previously closed at $417.03.

More Synopsys News

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

Wall Street Analyst Weigh In

A number of brokerages recently commented on SNPS. Zacks Research upgraded Synopsys from a “hold” rating to a “strong-buy” rating in a report on Tuesday, June 30th. Berenberg Bank set a $633.00 price target on shares of Synopsys in a report on Wednesday, May 27th. Wells Fargo & Company boosted their price objective on shares of Synopsys from $505.00 to $535.00 and gave the company an “equal weight” rating in a research report on Thursday, May 28th. Stifel Nicolaus upped their price objective on shares of Synopsys from $550.00 to $600.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. Finally, BNP Paribas Exane raised their target price on shares of Synopsys from $425.00 to $450.00 and gave the stock an “underperform” rating in a research report on Thursday, May 28th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $570.06.

Synopsys Trading Down 0.0%

The stock has a 50-day moving average of $469.31 and a two-hundred day moving average of $458.48. The company has a market cap of $73.58 billion, a P/E ratio of 88.95, a price-to-earnings-growth ratio of 2.26 and a beta of 1.22. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.32 and a current ratio of 1.43.

Synopsys (NASDAQ:SNPS) last released its earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, topping analysts’ consensus estimates of $3.15 by $0.20. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The firm had revenue of $2.28 billion for the quarter, compared to analysts’ expectations of $2.25 billion. During the same period in the prior year, the firm posted $3.67 earnings per share. The company’s quarterly 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. On average, equities research analysts predict that Synopsys, Inc. will post 10.65 earnings per share for the current year.

Insider Activity

In other news, CFO Shelagh Glaser sold 3,394 shares of the company’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $450.02, for a total value of $1,527,367.88. Following the transaction, the chief financial officer owned 14,358 shares in the company, valued at approximately $6,461,387.16. This represents a 19.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the company’s stock in a transaction that occurred on 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 in the company, valued at approximately $34,431,179.20. This represents a 16.29% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Corporate insiders own 0.56% of the company’s stock.

Institutional Investors Weigh In On Synopsys

Several institutional investors and hedge funds have recently made changes to their positions in the company. Sankala Group LLC purchased a new stake in Synopsys during the 4th quarter valued at $25,000. Elevation Wealth Partners LLC raised its stake in shares of Synopsys by 96.4% in the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 27 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. purchased a new position in shares of Synopsys in the fourth quarter worth $28,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Synopsys during the fourth quarter valued at $28,000. Finally, Atlas Capital Advisors Inc. bought a new position in shares of Synopsys during the fourth quarter valued at $32,000. Institutional investors own 85.47% of the company’s stock.

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.