Johnson Financial Group Inc. has reduced its stake in Synopsys, Inc. by 7.6%, according to a recent filing with the U.S. Securities and Exchange Commission (SEC). The firm sold 428 shares during the second quarter, bringing its total holdings to 5,204 shares. At the end of the reporting period, these shares were valued at approximately $2.67 million.
Significant changes in ownership have also been observed among other institutional investors and hedge funds. For instance, Symphony Financial Ltd. Co. significantly increased its stake in Synopsys by an impressive 4,780.9%, now owning 40,219 shares valued at $20.64 million after acquiring an additional 39,395 shares in the last quarter. Similarly, HBW Advisory Services LLC raised its holdings by 494.9%, bringing its total to 3,611 shares worth $1.85 million.
In addition, Bank of New York Mellon Corp. increased its position in Synopsys by 0.4%, now owning 1,347,887 shares valued at approximately $691 million. Westbourne Investments Inc. entered the market with a new position valued at $1.51 million, while Mirae Asset Global Investments Co. Ltd. grew its holdings by 1.7%, owning 178,786 shares valued at $91.66 million. Overall, institutional investors own 85.47% of Synopsys stock.
Analysts Adjust Ratings and Price Targets
Multiple research analysts have recently updated their ratings and price targets for Synopsys. Wells Fargo & Company has lowered its target price from $550.00 to $445.00, assigning an “equal weight” rating in a research note published on October 8, 2023. Weiss Ratings reiterated a “hold (c)” rating, while Piper Sandler reduced its target from $660.00 to $630.00, maintaining an “overweight” rating.
Baird R W adjusted its rating from “strong-buy” to “hold,” and Mizuho decreased its price objective from $700.00 to $600.00, keeping an “outperform” rating. Currently, ten analysts have rated Synopsys with a Buy rating, six have assigned a Hold rating, and two have given it a Sell rating. According to MarketBeat, Synopsys holds an average rating of “Hold” with a consensus price target of $556.33.
Stock Performance and Earnings Report
On Thursday, September 9, 2023, Synopsys stock opened at $409.68. The company boasts a market capitalization of $76.10 billion, with a price-to-earnings ratio of 32.16 and a beta of 1.10. Over the past year, the stock has reached a low of $365.74 and a high of $651.73. Its 50-day moving average price stands at $443.27, while the 200-day moving average price is $508.76.
In its latest quarterly earnings report, Synopsys disclosed earnings per share (EPS) of $2.30, which fell short of the consensus estimate of $3.75 by $1.45. The company reported a net margin of 31.04% and a return on equity of 10.82%, with quarterly revenue reaching $1.74 billion, a 14% increase compared to the same period last year, although below analysts’ expectations of $1.77 billion. For fiscal year 2025, Synopsys has set a guidance range of 12.760-12.800 EPS and 2.760-2.80 EPS for Q4 2025.
Insider Activity
In recent insider trading, CEO Sassine Ghazi sold 11,366 shares on September 2, 2023, at an average price of $589.01, totaling $6.69 million. Following this transaction, Ghazi retains 71,615 shares valued at approximately $42.18 million, representing a 13.70% decrease in his ownership.
Additionally, Director Robert G. Painter acquired 350 shares on September 11, 2023, at an average cost of $425.44, amounting to $148,904. This purchase increased his holdings to 2,291 shares, valued at approximately $974,683. Over the past three months, insiders have sold a total of 30,894 shares valued at $16.76 million, with insiders owning 0.62% of the stock.
Synopsys, Inc. specializes in electronic design automation (EDA) software used in the design and testing of integrated circuits. The company operates in three segments: Design Automation, Design IP, and Software Integrity, offering a range of products tailored for digital design implementation and verification.
