The stock of Synopsys Inc. (NASDAQ:SNPS) decreased by -$2.93 on Friday to finish at $428.46, down -0.68 percent. The last five days have seen an average of 532,600 shares of common stock traded. 22 times new highs were reached in the current year, with a gain of $109.17. The average number of shares traded over the last 20 days was 747,380, while the average volume over the last 50 days totaled 924,108.
SNPS stock dropped -4.54% since last month. On 08/11/23, the company’s shares reached a one-month low of $425.43. The stock touched a high of $468.03 on 05/30/23, after rallying from a low of $267.00 in 52 weeks. The price of SNPS stock has risen by 34.19% or $109.17 this year, reaching a new high 22 times. Still, the stock price is down -8.45% from the 52-week high.
Insider Transactions
SNPS stock investors should be aware that Synopsys Inc. (SNPS) stock had its last reported insider trading activity 54 days ago on Jun 21. On Jun 21, Chairman of the Board & CEO DE GEUS AART sold 40,839 shares at $428.18 each. This transaction resulted in the insider making $17,486,606. On Jun 16, MAHONEY RICHARD S. sold 9,257 shares at a price of US$448.74. After the transaction, the insider now owns 2,078 shares. Chairman of the Board & CEO DE GEUS AART had earlier sold 40,000 shares on Jun 13 for $447.40 a share. The transaction was completed for $17,896,136.
Valuation Metrics
Synopsys Inc. (SNPS) has a trailing price-to-earnings (P/E) ratio of 72.30. Beta for the stock is 1.12. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 12.41, the price-to-book (PB) ratio of 11.18, and the price-to-cash flow ratio of 57.93.
Financial Health
For the three months ended April 29, Synopsys Inc.’s quick ratio was 1.10, while its current ratio was 1.10, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 78.50% percent. Synopsys Inc.’s EBITDA margin for the year ended April 29 was 29.80%, whereas its operating margin stood at 18.80% for the same period. Based on annual data, it had gross profit of $4.02 billion and revenue of $5.08 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. SNPS’s return on assets (ROA) during the last 12 months has been 9.70%. There was a 18.50% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 16.30%.
Earnings Surprise
According to Synopsys Inc.’s quarterly financial report for the quarter that ended April 29, it had $20.2 million in total debt versus $150.85 million in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.39 billion, while revenues rose by 8.29% to $1.36 billion. It was predicted that Synopsys Inc.’s quarterly earnings would be $2.54, but it ended up being $2.46, beating the consensus by 3.30%. EBITDA was $367.7 million for the quarter. At the end of Synopsys Inc.’s most recent quarter ended April 29, its liabilities totaled 3.95 billion, while its total debt was $689.92 million. Equity owned by shareholders amounts to $152.16 million.
Technical Picture
Here’s a quick look at Synopsys Inc.’s (SNPS) price momentum from a technical perspective. As of 11 August, the RSI 9-day stood at 31.56%, suggesting the stock is Neutral, with a 17.56% historical volatility rate.
The stochastic %K and %D were 11.35% and 12.32% respectively, while the average true range (ATR) was 9.31. Based on the 14-day stochastic reading of 8.69%, the RSI (14) reading is 38.78%. On the 9-day MACD Oscillator, the stock is at -8.73, and the 14-day reading is at -13.41.
Analyst Ratings
In its most recent analyst report, BofA Securities raised its rating on Synopsys Inc. (NASDAQ: SNPS) to a Buy. Prior to this, analysts firm rated the stock as a Neutral. Analysts have assigned Synopsys Inc. (SNPS) an Buy rating. SNPS is a stock that is recommended for selling by 0 brokerage firms, while 1 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 2 rates it overweight and 11 others recommend it as a buy.
What is SNPS’s price target for the next 12 months?
The current consensus forecast for the stock is between $410.00 and $510.00, with a median target price of $471.90. In analyzing these forecasts, the average price target given by analysts for Synopsys Inc. (SNPS) is $469.84.
