GDS Wealth Management has significantly increased its investment in Synopsys, Inc. (NASDAQ:SNPS), purchasing an additional 17,549 shares in the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), this acquisition represents a remarkable growth of 116.7% in GDS Wealth Management’s holdings, which now total 32,582 shares. As of the end of the most recent quarter, these shares were valued at approximately $16.1 million.
Other institutional investors have also made notable adjustments to their positions in Synopsys. Norges Bank entered the scene with a new stake valued at $647.96 million during the second quarter. Additionally, Ameriprise Financial Inc. raised its stake by 29.1%, owning 2,598,874 shares, which are now worth over $1.33 billion following the purchase of 585,494 shares in the last quarter.
Massachusetts Financial Services Co. increased its holdings by an impressive 177.5% in the third quarter, acquiring an additional 553,924 shares to bring its total to 865,987 shares, valued at about $427.27 million. Other notable investors include Ninety One UK Ltd, which initiated a stake worth $249.85 million, and Aspex Management HK Ltd, raising its stake by 106.0% with a total of 645,895 shares now valued at $331.14 million. Currently, institutional investors hold approximately 85.47% of Synopsys stock.
Insider Transactions and Market Performance
In related news, insider transactions at Synopsys have revealed some activity. On January 12, 2024, insider Janet Lee sold 250 shares at an average price of $530.00, totaling $132,500.00. Following this transaction, Lee retains 11,959 shares valued at around $6.34 million, marking a 2.05% decrease in her ownership. Meanwhile, Chief Financial Officer Shelagh Glaser sold 3,657 shares on December 19, 2023, for a total of $1.69 million, bringing her remaining shares to 17,842, valued at approximately $8.22 million.
In the last 90 days, insiders have sold a total of 4,157 shares valued at $1.95 million, with insiders currently owning about 0.62% of the company’s stock.
As for market performance, Synopsys shares opened at $501.39 on Friday, reflecting a decline of 1.6%. The company maintains a debt-to-equity ratio of 0.48 as well as liquidity metrics including a quick ratio of 1.52 and a current ratio of 1.62. Over the past year, Synopsys has experienced a stock range between a low of $365.74 and a high of $651.73. The stock’s 50-day simple moving average stands at $466.97, while the 200-day average is $503.94, reflecting a market capitalization of $95.93 billion.
Financial Results and Analyst Ratings
In its latest earnings report released on December 10, 2023, Synopsys reported earnings per share of $2.90, surpassing analysts’ expectations of $2.79. The company’s revenue for the quarter reached $2.25 billion, matching estimates, and showed a year-over-year growth of 37.8%. The firm’s return on equity was recorded at 7.89% with a net margin of 18.89%. Looking ahead, Synopsys has projected its fiscal year 2026 earnings per share guidance to be between $14.320 and $14.400, with first-quarter guidance ranging from $3.520 to $3.580.
Market analysts have expressed varied opinions on Synopsys. Piper Sandler recently adjusted their rating from “overweight” to “neutral” and lowered their price target from $602.00 to $520.00. In contrast, Wells Fargo & Company increased their price target from $445.00 to $500.00 while maintaining an “equal weight” rating. Other analysts have upgraded their ratings, with nine rating the stock as a “buy,” six as “hold,” and one as “sell,” according to data from MarketBeat. The average price target stands at approximately $553.57, indicating a generally positive sentiment towards Synopsys in the current market landscape.
Synopsys, Inc. continues to play a pivotal role in the electronic design automation (EDA) industry, providing crucial software and semiconductor intellectual property solutions that facilitate the design and manufacture of integrated circuits and complex systems-on-chip. With a diverse product offering, Synopsys enables chip designers to efficiently transition from architecture to production.
