Synopsys, Inc. (SNPS) Downgraded by Zacks Investment Research to “Hold”

Zacks Investment Research lowered shares of Synopsys, Inc. (NASDAQ:SNPS) from a buy rating to a hold rating in a report published on Thursday.

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.”

Several other analysts have also recently issued reports on the stock. HSBC Holdings plc reaffirmed an average rating on shares of Synopsys in a research note on Thursday, September 14th. Credit Suisse Group reiterated an outperform rating on shares of Synopsys in a report on Thursday, August 31st. Royal Bank Of Canada boosted their target price on shares of Synopsys from $85.00 to $90.00 and gave the company an outperform rating in a report on Thursday, August 17th. Needham & Company LLC reiterated a buy rating and issued a $83.00 target price (up from $77.00) on shares of Synopsys in a report on Thursday, August 17th. Finally, BidaskClub upgraded shares of Synopsys from a buy rating to a strong-buy rating in a report on Thursday, August 17th. Three analysts have rated the stock with a hold rating, seven have issued a buy rating and one has given a strong buy rating to the stock. Synopsys currently has a consensus rating of Buy and an average price target of $83.88.

Shares of Synopsys (SNPS) opened at 80.36 on Thursday. The company has a market cap of $12.07 billion, a P/E ratio of 37.73 and a beta of 0.99. The firm has a 50-day moving average of $78.47 and a 200 day moving average of $74.70. Synopsys has a 52 week low of $56.03 and a 52 week high of $81.57.

Synopsys (NASDAQ:SNPS) last announced its quarterly earnings data on Wednesday, August 16th. The semiconductor company reported $0.92 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.92. Synopsys had a net margin of 12.37% and a return on equity of 11.60%. The company had revenue of $695.40 million during the quarter, compared to analysts’ expectations of $691.22 million. During the same quarter in the prior year, the company earned $0.76 EPS. Synopsys’s revenue was up 13.0% compared to the same quarter last year. Equities analysts expect that Synopsys will post $3.31 EPS for the current fiscal year.

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Synopsys declared that its board has authorized a stock repurchase plan on Friday, June 16th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the semiconductor company to purchase up to 4.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

In other Synopsys news, CEO Chi-Foon Chan sold 3,750 shares of the business’s stock in a transaction dated Friday, August 18th. The shares were sold at an average price of $77.50, for a total value 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Joseph W. Logan sold 5,000 shares of the business’s stock in a transaction dated Friday, August 18th. The shares were sold at an average price of $76.99, for a total transaction of $384,950.00. Following the completion of 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. Insiders own 1.82% of the company’s stock.

Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc. lifted its holdings in shares of Synopsys by 3.1% in the 2nd quarter. Vanguard Group Inc. now owns 15,500,829 shares of the semiconductor company’s stock worth $1,130,474,000 after acquiring an additional 469,622 shares during the last quarter. BlackRock Inc. lifted its holdings in shares of Synopsys by 3,273.6% in the 1st quarter. BlackRock Inc. now owns 12,796,224 shares of the semiconductor company’s stock worth $922,991,000 after acquiring an additional 12,416,921 shares during the last quarter. State Street Corp lifted its holdings in shares of Synopsys by 19.9% in the 1st quarter. State Street Corp now owns 7,240,263 shares of the semiconductor company’s stock worth $522,251,000 after acquiring an additional 1,201,269 shares during the last quarter. Ameriprise Financial Inc. lifted its holdings in shares of Synopsys by 3.0% in the 2nd quarter. Ameriprise Financial Inc. now owns 4,277,670 shares of the semiconductor company’s stock worth $311,973,000 after acquiring an additional 125,190 shares during the last quarter. Finally, Janus Henderson Group PLC lifted its holdings in shares of Synopsys by 14,458.8% in the 2nd quarter. Janus Henderson Group PLC now owns 3,226,957 shares of the semiconductor company’s stock worth $235,342,000 after acquiring an additional 3,204,792 shares during the last quarter. Hedge funds and other institutional investors own 88.94% of the company’s stock.

About Synopsys

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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