GDS Wealth Management has significantly increased its stake in Synopsys, Inc. (NASDAQ:SNPS), raising its holdings by 116.7% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the firm acquired an additional 17,549 shares, bringing its total to 32,582 shares. As of the end of September, GDS’s investment in the semiconductor company was valued at approximately $16.08 million.
Several other institutional investors have also adjusted their positions in Synopsys recently. Notably, Norges Bank established a new position valued at $647.96 million during the second quarter. Additionally, Ameriprise Financial Inc. increased its holdings by 29.1%, now owning 2,598,874 shares valued at about $1.33 billion after acquiring 585,494 shares in the last quarter.
Another significant player is Massachusetts Financial Services Co., which boosted its stake by 177.5% during the same period, now holding 865,987 shares worth around $427.27 million. Ninety One UK Ltd also entered the fray, acquiring a new stake valued at approximately $249.85 million.
Insider trading activity has also been noted at Synopsys. On January 12, 2024, insider Janet Lee sold 250 shares at an average price of $530.00, totaling $132,500. Following this transaction, Lee’s remaining shares are valued at $6.34 million. Similarly, Shelagh Glaser, the Chief Financial Officer, sold 3,657 shares on December 19, 2023, for about $1.69 million.
Overall, institutional investors now hold 85.47% of Synopsys’s stock, while insiders own only 0.62% of the shares. In the past 90 days, insiders have sold a total of 4,157 shares worth about $1.95 million.
Market Performance and Financial Outlook
As of the most recent trading day, Synopsys shares traded at $501.39, reflecting a 1.6% decline. The company has a market capitalization of $95.93 billion and notable financial ratios, including a P/E ratio of 62.75 and a debt-to-equity ratio of 0.48. The stock has fluctuated between a fifty-two week low of $365.74 and a high of $651.73.
In its latest earnings report released on December 10, 2023, Synopsys reported earnings per share of $2.90, exceeding analysts’ expectations of $2.79. Total revenue for the quarter stood at $2.25 billion, marking a year-over-year increase of 37.8%. The company has projected its earnings for fiscal year 2026 to be between $14.32 and $14.40 per share, with first quarter guidance set between $3.52 and $3.58 per share.
Analysts’ Ratings and Predictions
Market analysts have expressed varied opinions on Synopsys’s stock. Piper Sandler downgraded the company from an “overweight” to a “neutral” rating, lowering its price target from $602.00 to $520.00. Conversely, Wells Fargo & Company raised its target from $445.00 to $500.00 while maintaining an “equal weight” rating.
Research from Wall Street Zen upgraded the stock from a “sell” to a “hold,” while Rosenblatt Securities shifted its rating from “neutral” to “buy,” reducing its target price from $605.00 to $560.00. Overall, nine analysts currently rate Synopsys as a Buy, six as Hold, and one as Sell, indicating a consensus rating of “Moderate Buy” with an average price target of $553.57.
Synopsys, Inc. remains a prominent player in the electronic design automation (EDA) sector, providing critical software and intellectual property used for designing integrated circuits and systems-on-chip. Its extensive product portfolio includes tools for design verification, physical implementation, and design-for-manufacturability, enabling companies to enhance their chip development processes.
