Zacks Investment Research upgraded shares of Synopsys, Inc. (NASDAQ:SNPS) from a hold rating to a buy rating in a research report released on Monday morning. The firm currently has $86.00 target price on the semiconductor company’s stock.
According to Zacks, “Synopsys is a vendor of electronic design automation (EDA) software to the semiconductor and electronics industries. The company posted impressive fiscal third-quarter results. Revenues as well as earnings improved year over year, mainly due to strength in hardware and IP products. Additionally, the company’s fourth-quarter and upbeat fiscal 2017 guidance are encouraging. 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. Additionally, the acquisition of Cigital and Codiscope will enable Synopsys to offer a comprehensive software security signoff solution to its customers. Notably, shares of Synopsys has outperformed the industry over the past one year.”
Several other equities research analysts have also recently weighed in on the company. BidaskClub cut Synopsys from a strong-buy rating to a buy rating in a research report on Wednesday, July 5th. Pacific Crest reissued an overweight rating and issued a $86.00 price objective (up from $78.00) on shares of Synopsys in a research report on Friday, May 19th. Needham & Company LLC reissued a buy rating and issued a $77.00 price objective (up from $76.00) on shares of Synopsys in a research report on Thursday, May 18th. DA Davidson reissued a buy rating and issued a $85.00 price objective (up from $77.00) on shares of Synopsys in a research report on Friday, May 19th. Finally, J P Morgan Chase & Co reissued an average rating on shares of Synopsys in a research report on Friday, May 26th. Two equities research analysts have rated the stock with a hold rating, seven have given a buy rating and one has issued a strong buy rating to the company. Synopsys presently has an average rating of Buy and an average price target of $83.38.
Synopsys (NASDAQ:SNPS) opened at 78.53 on Monday. The firm has a market capitalization of $11.80 billion, a price-to-earnings ratio of 36.87 and a beta of 1.02. Synopsys has a one year low of $56.03 and a one year high of $79.66. The stock has a 50 day moving average of $76.14 and a 200 day moving average of $73.26.
Synopsys (NASDAQ:SNPS) last posted its quarterly earnings data on Wednesday, August 16th. The semiconductor company reported $0.92 earnings per share for the quarter, meeting the consensus estimate of $0.92. Synopsys had a return on equity of 11.60% and a net margin of 12.37%. The company had revenue of $695.40 million during the quarter, compared to analysts’ expectations of $691.22 million. During the same period in the prior year, the business earned $0.76 earnings per share. Synopsys’s revenue for the quarter was up 13.0% compared to the same quarter last year. Analysts forecast that Synopsys will post $3.31 earnings per share for the current year.
Synopsys declared that its Board of Directors has approved a stock repurchase program on Friday, June 16th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the semiconductor company to purchase up to 4.5% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its shares are undervalued.
In related news, EVP Joseph W. Logan sold 5,000 shares of the firm’s stock in a transaction on Friday, August 18th. The stock was sold at an average price of $76.99, for a total value of $384,950.00. Following the completion of the transaction, the executive vice president now directly owns 63,793 shares of the company’s stock, valued at $4,911,423.07. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Chi-Foon Chan sold 3,750 shares of the firm’s stock in a transaction on Friday, August 18th. The stock was sold at an average price of $77.50, for a total value of $290,625.00. Following the completion of the transaction, the chief executive officer now directly owns 200,429 shares of the company’s stock, valued at $15,533,247.50. The disclosure for this sale can be found here. 1.82% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of the company. Bronfman E.L. Rothschild L.P. boosted its position in shares of Synopsys by 11.9% in the second quarter. Bronfman E.L. Rothschild L.P. now owns 1,382 shares of the semiconductor company’s stock valued at $101,000 after buying an additional 147 shares during the period. IFP Advisors Inc boosted its position in shares of Synopsys by 40.4% in the second quarter. IFP Advisors Inc now owns 1,441 shares of the semiconductor company’s stock valued at $105,000 after buying an additional 415 shares during the period. YorkBridge Wealth Partners LLC boosted its position in shares of Synopsys by 6.6% in the first quarter. YorkBridge Wealth Partners LLC now owns 1,487 shares of the semiconductor company’s stock valued at $110,000 after buying an additional 92 shares during the period. Mckinley Capital Management LLC Delaware purchased a new position in shares of Synopsys during the first quarter valued at approximately $121,000. Finally, Robecosam AG boosted its position in shares of Synopsys by 10.0% in the first quarter. Robecosam AG now owns 2,200 shares of the semiconductor company’s stock valued at $159,000 after buying an additional 200 shares during the period. 90.98% of the stock is owned by hedge funds and other institutional investors.
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.
Get a free copy of the Zacks research report on Synopsys (SNPS)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Synopsys Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Synopsys Inc. and related companies with MarketBeat.com's FREE daily email newsletter.
