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

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.”

A number of other analysts have also weighed in on SNPS. Credit Suisse Group reissued a positive rating and issued a $90.00 price target (up previously from $82.00) on shares of Synopsys in a report on Tuesday, August 15th. BidaskClub raised shares of Synopsys from a buy rating to a strong-buy rating in a report on Thursday, August 17th. Needham & Company LLC reissued a buy rating and issued a $83.00 price target (up previously from $77.00) on shares of Synopsys in a report on Thursday, August 17th. Royal Bank Of Canada raised their price target on shares of Synopsys from $85.00 to $90.00 and gave the company an outperform rating in a report on Thursday, August 17th. Finally, HSBC Holdings plc reissued an average rating on shares of Synopsys in a report on Thursday, September 14th. Three research analysts have rated the stock with a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the company’s stock. The company has an average rating of Buy and a consensus target price of $84.00.

Shares of Synopsys (NASDAQ:SNPS) opened at 82.07 on Monday. Synopsys has a 52-week low of $56.03 and a 52-week high of $82.16. The firm has a market capitalization of $12.33 billion, a P/E ratio of 38.53 and a beta of 1.00. The firm has a 50-day moving average price of $79.71 and a 200-day moving average price of $75.46.

Synopsys (NASDAQ:SNPS) last issued its quarterly earnings results on Wednesday, August 16th. The semiconductor company reported $0.92 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.92. The business had revenue of $695.40 million during the quarter, compared to analyst estimates of $691.22 million. Synopsys had a net margin of 12.37% and a return on equity of 11.60%. Synopsys’s revenue for the quarter was up 13.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.76 earnings per share. On average, equities research analysts anticipate that Synopsys will post $3.31 EPS for the current year.

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Synopsys announced that its board has approved a share repurchase program on Friday, June 16th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the semiconductor company to reacquire up to 4.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its shares are undervalued.

In other Synopsys news, 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 transaction of $384,950.00. Following the completion of the sale, the executive vice president now owns 63,793 shares of the company’s stock, valued at approximately $4,911,423.07. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, 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 sale, the chief executive officer now directly owns 200,429 shares of the company’s stock, valued at approximately $15,533,247.50. The disclosure for this sale can be found here. 1.82% of the stock is currently owned by insiders.

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in shares of Synopsys by 3.1% during the second quarter. Vanguard Group Inc. now owns 15,500,829 shares of the semiconductor company’s stock worth $1,130,474,000 after purchasing an additional 469,622 shares in the last quarter. BlackRock Inc. boosted its position in shares of Synopsys by 3,273.6% during the first quarter. BlackRock Inc. now owns 12,796,224 shares of the semiconductor company’s stock worth $922,991,000 after purchasing an additional 12,416,921 shares in the last quarter. State Street Corp boosted its position in shares of Synopsys by 19.9% during the first quarter. State Street Corp now owns 7,240,263 shares of the semiconductor company’s stock worth $522,251,000 after purchasing an additional 1,201,269 shares in the last quarter. Ameriprise Financial Inc. boosted its position in shares of Synopsys by 3.0% during the second quarter. Ameriprise Financial Inc. now owns 4,277,670 shares of the semiconductor company’s stock worth $311,973,000 after purchasing an additional 125,190 shares in the last quarter. Finally, Janus Henderson Group PLC boosted its position in shares of Synopsys by 14,458.8% during the second quarter. Janus Henderson Group PLC now owns 3,226,957 shares of the semiconductor company’s stock worth $235,342,000 after purchasing an additional 3,204,792 shares in the last quarter. 88.94% of the stock is owned by hedge funds and other institutional investors.

Synopsys Company Profile

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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