Synopsys (NASDAQ:SNPS) Announces Earnings Results

Synopsys (NASDAQ:SNPS) posted its quarterly earnings data on Wednesday. The semiconductor company reported $2.25 EPS for the quarter, missing the consensus estimate of $2.81 by ($0.56), Zacks reports. Synopsys had a net margin of 36.12% and a return on equity of 20.48%. Synopsys updated its FY 2025 guidance to 14.880-14.960 EPS and its Q2 2025 guidance to 3.370-3.420 EPS.

Synopsys Stock Performance

SNPS stock traded up $12.51 during trading on Wednesday, hitting $470.46. The stock had a trading volume of 1,532,766 shares, compared to its average volume of 1,109,050. The stock has a market cap of $72.72 billion, a price-to-earnings ratio of 32.40, a price-to-earnings-growth ratio of 3.23 and a beta of 1.12. The company’s 50 day moving average price is $508.09 and its two-hundred day moving average price is $516.89. Synopsys has a 1-year low of $457.00 and a 1-year high of $624.80.

Insiders Place Their Bets

In related news, CRO Richard S. Mahoney sold 20,838 shares of the company’s stock in a transaction that occurred on Wednesday, January 15th. The shares were sold at an average price of $506.01, for a total transaction of $10,544,236.38. Following the transaction, the executive now owns 1,460 shares of the company’s stock, valued at approximately $738,774.60. This represents a 93.45 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.66% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on SNPS shares. Wells Fargo & Company dropped their price target on shares of Synopsys from $570.00 to $540.00 and set an “equal weight” rating on the stock in a research note on Monday, January 13th. Morgan Stanley lowered their price target on Synopsys from $625.00 to $590.00 and set an “overweight” rating on the stock in a report on Monday. Robert W. Baird reduced their price objective on Synopsys from $644.00 to $630.00 and set an “outperform” rating for the company in a report on Thursday, December 5th. Needham & Company LLC reissued a “buy” rating and issued a $640.00 target price on shares of Synopsys in a report on Thursday, December 5th. Finally, Redburn Atlantic initiated coverage on Synopsys in a research report on Monday, January 13th. They issued a “buy” rating and a $600.00 price target for the company. One investment analyst has rated the stock with a hold rating and twelve have issued a buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $639.58.

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.