On September 30, 2023, research analysts at the global banking giant HSBC initiated coverage on shares of Synopsys (NASDAQ: SNPS), a leading semiconductor company. In their research report, HSBC issued a “buy” rating on the stock.
Shares of SNPS opened at $460.71 on Friday, revealing a positive start to the trading day. Looking at the stock’s performance over the past 50 days, it has maintained an average price of $448.07. Over a longer period of 200 days, the average price was recorded at $419.87. The stock experienced a year-long low of $267.00 and reached its highest point at $471.15 during that same period.
With regard to market capitalization, Synopsys holds a impressive value of $70.07 billion. The company boasts a price-to-earnings (PE) ratio of 69.07 and shows potential growth with a P/E/G ratio of 3.46. In terms of risk assessment, Synopsys scores a beta value of 1.11.
Taking a closer look at investor activity surrounding Synopsys, various hedge funds and institutional investors have recently made changes to their positions in the company’s shares. Freedom Wealth Alliance LLC acquired new stakes in Synopsys during the fourth quarter worth approximately $26,000. Altshuler Shaham Ltd also purchased new stakes in the second quarter valued at around $28,000.
VitalStone Financial LLC followed suit by purchasing new positions in Synopsys during the first quarter for approximately $30,000 while Ancora Advisors LLC acquired new stakes worth $30,000 in the fourth quarter as well. Additionally, HHM Wealth Advisors LLC bought new shares during the first quarter for approximately $31,000.
As for its financial performance, Synopsys last announced its earnings results on Wednesday, August 16th. The semiconductor company reported earnings per share (EPS) of $2.88 for the quarter, surpassing analysts’ consensus estimates of $2.74 by a margin of $0.14.
Furthermore, Synopsys generated revenue worth $1.49 billion during the same quarter, slightly edging above analyst estimates of $1.48 billion. With a net margin of 18.71% and a return on equity (ROE) of 18.01%, the company showcased its profitability and efficient utilization of resources.
Compared to the corresponding quarter in the previous year, Synopsys experienced an impressive 19.2% increase in quarterly revenue growth rate for this most recent reporting period. In the same time frame last year, the company had earned EPS of $1.43.
Analysts expect that Synopsys will continue to thrive throughout the current year and anticipate earning approximately $7.87 per share.
With HSBC’s recent “buy” rating on shares of Synopsys and considering its strong financial performance as well as positive investor sentiment, it seems that Synopsys is poised for continued success in the semiconductor industry.
Analysis of Equities Analyst Ratings and Insider Trading Activity: Synopsys (SNPS)
In recent months, numerous equities analysts have provided their insights and evaluations regarding Synopsys (SNPS). These assessments include price objectives, ratings, and recommendations for investors to consider. JPMorgan Chase & Co., for example, has raised its price objective on SNPS shares from $470.00 to $500.00 and assigned the stock an “overweight” rating in a research note published on Thursday, August 17th. Similarly, Stifel Nicolaus has boosted its price objective from $445.00 to $470.00 and labeled SNPS as a “buy” in their research report on the same day.
Another encouraging sign for Synopsys comes from StockNews.com, which upgraded the stock’s rating from “buy” to “strong-buy” in their analysis released on Friday, August 25th. Furthermore, Robert W. Baird also provided positive feedback by increasing its price target from $491.00 to $505.00 and giving SNPS an “outperform” rating in their report on Thursday, August 17th. Lastly, KeyCorp’s analysts have raised their price objective on Synopsys from $500.00 to $515.00 with an “overweight” rating.
Considering these assessments collectively, it is evident that majority of equities research analysts are favorably inclined towards SNPS shares and have assigned them buy or strong buy ratings. While one analyst maintained a hold rating, it is clear that overall sentiment leans towards optimism regarding the company’s future prospects.
Bloomberg data suggests that the average rating for Synopsys stands at “Buy,” affirming the consensus view among these analysts who follow the stock closely. Additionally, Bloomberg also reports that the consensus price target for Synopsys is currently estimated at $467.22.
In related news concerning insider trading activity within Synopsys, CAO Sudhindra Kankanwadi recently sold 5,100 shares of the company’s stock in a transaction that took place on Friday, September 1st. The average price per share during this transaction was $460.75, resulting in a total value of $2,349,825.00. Following this sale, the chief accounting officer now holds 16,793 shares directly in the company with a value of $7,737,374.75.
This transaction was disclosed through an official document submitted to the Securities & Exchange Commission (SEC), which is accessible via the provided link. It should be noted that CAO Sudhindra Kankanwadi also sold an additional 5,100 shares on the same day at the same average price per share and currently retains ownership of 16,793 SNPS shares with a value of $7,737,374.75.
Another notable insider trading occurrence involves John F. Runkel Jr., an insider at Synopsys who sold 2,507 shares on Wednesday, September 13th. The average price per share during this transaction was $455.00 for a total value of $1,140,685.00. Currently, John F. Runkel Jr. holds 24,732 shares directly within the company with a market value of approximately $11,253,060.
In summary, insiders at Synopsys have recently participated in several stock transactions as detailed in SEC filings and reports available on their website. Over the past three months alone, these insiders have collectively sold 10,114 company shares worth approximately $4,629,565. It’s important to note that corporate insiders currently own approximately 0.69% of Synopsys’ outstanding stock.
This update provides investors and readers an overview of recent equities analysts’ ratings and their accompanying justifications regarding Synopsys’ prospects as well as insights into insider trading activities within the company over recent weeks and months.