GDS Wealth Management has significantly increased its stake in Synopsys, Inc. (NASDAQ:SNPS), raising its holdings by an impressive 116.7% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission, GDS now owns a total of 32,582 shares of the semiconductor firm, after acquiring an additional 17,549 shares during this period. The total value of its holdings in Synopsys reached approximately $16.1 million at the end of the quarter.
Other institutional investors have also adjusted their positions in Synopsys. For instance, Norges Bank made a substantial investment of $647.96 million during the second quarter, while Ameriprise Financial Inc. increased its stake by 29.1%, owning 2,598,874 shares valued at about $1.33 billion following the purchase of an additional 585,494 shares. Massachusetts Financial Services Co. also enhanced its holdings by 177.5%, acquiring 553,924 shares during the third quarter and raising its total to 865,987 shares worth $427.27 million. Collectively, institutional investors now hold 85.47% of Synopsys stock.
Insider Transactions and Market Performance
In other news related to Synopsys, insider Janet Lee sold 250 shares on January 12, 2024, at an average price of $530.00, bringing the total transaction value to $132,500. Following this transaction, she retains 11,959 shares, valued at approximately $6.34 million. This sale reflects a 2.05% decrease in her ownership percentage.
Additionally, Chief Financial Officer Shelagh Glaser sold 3,657 shares on December 19, 2023, for a total of $1,685,035.89, which resulted in a 17.01% decline in her stake, leaving her with 17,842 shares valued at about $8.22 million. Over the past 90 days, insiders have sold a total of 4,157 shares worth $1.95 million, with insiders currently owning 0.62% of the company.
As of the latest trading session, Synopsys stock was down 1.6% and opened at $501.39. The company maintains a market capitalization of $95.93 billion, with a debt-to-equity ratio of 0.48, and ratios reflecting a quick ratio of 1.52 and a current ratio of 1.62. Over the past year, the stock has fluctuated, reaching a low of $365.74 and a high of $651.73.
Financial Performance and Analyst Ratings
Synopsys recently reported its earnings results for the quarter ending on December 10, 2023. The company posted earnings of $2.90 per share, surpassing analysts’ expectations of $2.79 by $0.11. Revenue for the quarter stood at $2.25 billion, aligning with market forecasts. The firm’s return on equity reached 7.89%, and it recorded a net margin of 18.89%, marking a significant 37.8% increase in revenue year-over-year.
For the fiscal year 2026, Synopsys has provided guidance of 14.320-14.400 EPS and for the first quarter of 2026, guidance is set at 3.520-3.580 EPS. Analysts expect the company to achieve an average of 10.64 EPS for the current fiscal year.
Several analysts have recently provided insights on Synopsys’ performance. Piper Sandler downgraded the stock from an “overweight” rating to “neutral,” adjusting the price target from $602.00 to $520.00. Conversely, Wells Fargo & Company raised its price target from $445.00 to $500.00, maintaining an “equal weight” rating. Overall, the consensus among nine analysts indicates a “Moderate Buy” rating, with an average price target of $553.57.
Synopsys, Inc. stands as a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP). Its extensive product portfolio supports the design, verification, and manufacturing of integrated circuits and complex systems-on-chip (SoCs), aiding chip designers through various phases of development.