Synopsys, Inc. (NASDAQ:SNPS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Friday. The brokerage presently has a $90.00 price objective on the semiconductor company’s stock. Zacks Investment Research‘s price objective points to a potential upside of 12.00% from the company’s previous close.
According to Zacks, “Synopsys is a vendor of electronic design automation (EDA) software to the semiconductor and electronics industries. Shares of Synopsys has outperformed the industry over the past one year. Synopsys recently completed the buyout of a privately-held self-funded company, QuantumWise. We believe that the company’s sustained focus on introducing new products, acquisitions and deal wins will continue to boost results, going ahead. Moreover, unique intellectual properties and global support provided by the company will likely drive its forthcoming results. Furthermore, Synopsys’ strategy to return wealth to shareholders highlights its growth potential and stable liquidity position. However, competition from peers, a challenging technology spending environment and uncertainty regarding the exact time of realizing acquisition synergies keep us on the side-lines.”
SNPS has been the topic of several other reports. Credit Suisse Group restated an “outperform” rating on shares of Synopsys in a research report on Thursday, August 31st. BidaskClub upgraded Synopsys from a “hold” rating to a “buy” rating in a research report on Monday, July 31st. HSBC Holdings plc restated an “average” rating on shares of Synopsys in a research report on Thursday, September 14th. J P Morgan Chase & Co restated an “average” rating on shares of Synopsys in a research report on Friday, May 26th. Finally, Needham & Company LLC restated a “buy” rating and issued a $83.00 target price (up from $77.00) on shares of Synopsys in a research report on Thursday, August 17th. Three research analysts have rated the stock with a hold rating, seven have given a buy rating and one has given a strong buy rating to the company. Synopsys currently has an average rating of “Buy” and a consensus price target of $83.88.
Synopsys (NASDAQ SNPS) opened at 80.36 on Friday. The company’s 50-day moving average price is $78.47 and its 200-day moving average price is $74.70. Synopsys has a one year low of $56.03 and a one year high of $81.57. The firm has a market cap of $12.07 billion, a price-to-earnings ratio of 37.73 and a beta of 0.99.
Synopsys (NASDAQ:SNPS) last posted its earnings results on Wednesday, August 16th. The semiconductor company reported $0.92 EPS for the quarter, meeting the consensus estimate of $0.92. Synopsys had a return on equity of 11.60% and a net margin of 12.37%. The firm had revenue of $695.40 million for the quarter, compared to analysts’ expectations of $691.22 million. During the same period last year, the firm earned $0.76 EPS. The firm’s revenue was up 13.0% compared to the same quarter last year. On average, analysts anticipate that Synopsys will post $3.31 EPS for the current year.
Synopsys declared that its Board of Directors has initiated a stock repurchase plan on Friday, June 16th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the semiconductor company to purchase up to 4.5% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board believes its shares are undervalued.
In other news, CEO Chi-Foon Chan sold 3,750 shares of Synopsys stock in a transaction on Friday, August 18th. The stock was sold at an average price of $77.50, for a total transaction of $290,625.00. Following the transaction, the chief executive officer now directly owns 200,429 shares in the company, valued at approximately $15,533,247.50. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, EVP Joseph W. Logan sold 5,000 shares of Synopsys stock in a transaction on Friday, August 18th. The shares were sold at an average price of $76.99, for a total value of $384,950.00. Following the transaction, the executive vice president now owns 63,793 shares in the company, valued at $4,911,423.07. The disclosure for this sale can be found here. 1.82% of the stock is currently owned by company insiders.
Several hedge funds have recently modified their holdings of the company. Sawtooth Solutions LLC increased its position in shares of Synopsys by 0.3% during the 2nd quarter. Sawtooth Solutions LLC now owns 3,220 shares of the semiconductor company’s stock valued at $235,000 after purchasing an additional 9 shares during the period. Alps Advisors Inc. increased its position in shares of Synopsys by 0.3% during the 2nd quarter. Alps Advisors Inc. now owns 6,767 shares of the semiconductor company’s stock valued at $494,000 after purchasing an additional 18 shares during the period. YorkBridge Wealth Partners LLC increased its position in shares of Synopsys by 3.7% during the 2nd quarter. YorkBridge Wealth Partners LLC now owns 1,542 shares of the semiconductor company’s stock valued at $111,000 after purchasing an additional 55 shares during the period. Ifrah Financial Services Inc. increased its position in shares of Synopsys by 1.2% during the 2nd quarter. Ifrah Financial Services Inc. now owns 5,204 shares of the semiconductor company’s stock valued at $380,000 after purchasing an additional 62 shares during the period. Finally, Cypress Wealth Advisors LLC increased its position in shares of Synopsys by 1.7% during the 1st quarter. Cypress Wealth Advisors LLC now owns 4,763 shares of the semiconductor company’s stock valued at $344,000 after purchasing an additional 81 shares during the period. Institutional investors own 88.94% of the company’s stock.
Synopsys, Inc provides software, intellectual property (IP) and services. The Company supplies the electronic design automation (EDA) software that engineers use to design and test integrated circuits, also known as chips. It also offers IP products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves.
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