Zacks Investment Research lowered shares of Synopsys (NASDAQ:SNPS) from a hold rating to a strong sell rating in a research report released on Monday.

According to Zacks, “Synopsys is a vendor of electronic design automation (EDA) software to the semiconductor and electronics industries. Though the company’s 4Q17 top and bottom lines both came ahead of the respective estimates and marked year-over-year improvement as well, its escalating costs and expenses, which are thwarting margins, make us increasingly cautious about its near-term profitability. Moreover, its non-GAAP earnings projection for FY18 was also disappointing as it fell short of the Zacks Consensus Estimate. Furthermore, competition from peers, a challenging technology-spending environment and uncertainty surrounding the exact time of realizing acquisition synergies keep us cautious. Nonetheless, we believe the company’s continued focus on rolling out products, acquisitions and deal wins will boost results over the long run. Shares of Synopsys have outperformed the industry in the YTD period.”

Other research analysts have also issued research reports about the company. reissued an average rating on shares of Synopsys in a report on Thursday, September 14th. Royal Bank Of Canada reissued a buy rating and set a $120.00 price objective on shares of Synopsys in a report on Thursday, November 30th. Needham & Company LLC reissued a buy rating and set a $83.00 price objective (up previously from $77.00) on shares of Synopsys in a report on Thursday, August 17th. DA Davidson reissued a buy rating and set a $105.00 price objective (up previously from $91.00) on shares of Synopsys in a report on Tuesday, November 28th. Finally, TheStreet lowered Synopsys from an a rating to a c+ rating in a report on Wednesday, November 29th. One research analyst has rated the stock with a sell rating, two have issued a hold rating, seven have given a buy rating and one has issued a strong buy rating to the stock. Synopsys presently has an average rating of Buy and an average target price of $98.13.

Shares of Synopsys (NASDAQ:SNPS) traded down $2.60 during midday trading on Monday, hitting $87.72. The stock had a trading volume of 1,383,900 shares, compared to its average volume of 1,057,687. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.07 and a current ratio of 1.04. The firm has a market cap of $13,300.00, a price-to-earnings ratio of 74.03, a price-to-earnings-growth ratio of 4.12 and a beta of 1.01. Synopsys has a fifty-two week low of $57.18 and a fifty-two week high of $94.80.

Synopsys (NASDAQ:SNPS) last issued its quarterly earnings data on Wednesday, November 29th. The semiconductor company reported $0.69 EPS for the quarter, beating the Zacks’ consensus estimate of $0.57 by $0.12. The business had revenue of $696.60 million for the quarter, compared to analyst estimates of $650.72 million. Synopsys had a return on equity of 5.78% and a net margin of 5.01%. The firm’s revenue for the quarter was up 9.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.77 EPS. analysts predict that Synopsys will post 2.41 earnings per share for the current year.

In other Synopsys news, Director Chrysostomos L. Nikias sold 21,074 shares of the firm’s stock in a transaction that occurred on Friday, December 1st. The stock was sold at an average price of $89.78, for a total value of $1,892,023.72. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Joseph W. Logan sold 5,000 shares of the firm’s stock in a transaction that occurred on Friday, December 1st. The shares were sold at an average price of $90.33, for a total value of $451,650.00. The disclosure for this sale can be found here. Insiders sold a total of 29,824 shares of company stock worth $2,680,349 in the last ninety days. Insiders own 1.82% of the company’s stock.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SNPS. Visionary Asset Management Inc. bought a new stake in shares of Synopsys in the 3rd quarter worth approximately $234,000. Belpointe Asset Management LLC bought a new stake in shares of Synopsys in the 3rd quarter worth approximately $1,752,000. IFM Investors Pty Ltd bought a new stake in shares of Synopsys in the 3rd quarter worth approximately $410,000. Alkeon Capital Management LLC lifted its position in shares of Synopsys by 0.4% in the 3rd quarter. Alkeon Capital Management LLC now owns 2,460,259 shares of the semiconductor company’s stock worth $198,125,000 after acquiring an additional 10,000 shares during the period. Finally, Piedmont Investment Advisors LLC bought a new stake in shares of Synopsys in the 3rd quarter worth approximately $629,000. 89.94% of the stock is currently owned by hedge funds and other institutional investors.

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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.

Analyst Recommendations for Synopsys (NASDAQ:SNPS)

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