At the last check on Thursday, Synopsys Inc.’s (NASDAQ:SNPS) stock was up $0.9, moving up 0.21 percent to $429.11. The average number of shares traded per day over the past five days has been 733,999 shares. 4 times new highs have been achieved over the past 5 days, with a -$1.98 fall in that time frame. In the last twenty days, the average volume was 752,810, while in the previous 50 days, it was 902,044.
Since last month, SNPS stock retreated -6.17%. Shares of the company fell to $425.43 on 08/11/23, the lowest level in the past month. A 52-week high of $468.03 was reached on 05/30/23 after having rallying from a 52-week low of $267.00. Since the beginning of this year, SNPS’s stock price has risen by 34.40% or $110.13, and marked a new high 22 times. However, the stock has declined by -8.32% since its 52-week high.
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SNPS stock investors should be aware that Synopsys Inc. (SNPS) stock had its last reported insider trading activity 57 days ago on Jun 21. DE GEUS AART, the Chairman of the Board & CEO of the company, disposed of 40,839 shares for $428.18 on Jun 21. It resulted in a $17,486,606 divestment by the insider. MAHONEY RICHARD S. sold 9,257 shares at an average price of $448.74 on Jun 16. The insider now owns 2,078 shares following the transaction. On Jun 13, Chairman of the Board & CEO DE GEUS AART sold 40,000 shares at $447.40 apiece. The transaction was valued at $17,896,136.
Valuation Metrics
Right now, Synopsys Inc. (SNPS) has a P/E ratio of about 72.41. The stock’s beta is 1.12. Besides these, the trailing price-to-sales (P/S) ratio of 12.43, the price-to-book (PB) ratio of 11.20, and the price-to-cash flow ratio of 58.02 may also be considered.
Financial Health
In the three months ended July 30, Synopsys Inc.’s quick ratio stood at 1.10, while its current ratio was 1.10, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 78.50% percent. In the year ended July 30, EBITDA margin amounted to 29.80%, whereas operating margins totaled 18.80%. Based on annual data, SNPS earned $4.02 billion in gross profit and brought in $5.08 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 18.50%. Return on equity (ROE) for the past 12 months was 16.30%.
In Synopsys Inc.’s quarter-end financial report for July 30, it reported total debt of $20.2 million against cash and short-term investments of $150.85 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. SNPS’s revenue rose 8.29% to $1.36 billion during the quarter, while net income inched up to $1.39 billion. While analysts expected Synopsys Inc. to report $2.74 quarterly earnings, the actual figure was $2.88 per share, beating the consensus estimate by 5.10%. During the quarter, the company generated $367.7 million in EBITDA. The liabilities of Synopsys Inc. were 3.95 billion at the end of its most recent quarter ended July 30, and its total debt was $689.92 million. The value of shareholders’ equity is $152.16 million.
Technical Picture
This quick technical analysis looks at Synopsys Inc.’s (SNPS) price momentum. With a historical volatility rate of 18.60%, the RSI 9-day stood at 38.21% on 16 August.
With respect to its five-day moving average, the current Synopsys Inc. price is down by -0.46% percent or -$1.98. At present, SNPS shares trade -4.94% below its 20-day simple moving average and +14.04% percent above its 100-day simple moving average. However, the stock is currently trading approximately -3.25% below its SMA50 and +45.15% above its SMA200.
Stochastic coefficient K was 18.39% and Stochastic coefficient D was 21.33%, while ATR was 10.87. Given the Stochastic reading of 13.67% for the 14-day period, the RSI (14) reading has been calculated as 41.76%. As of today, the MACD Oscillator reading stands at -1.66, while the 14-day reading stands at -6.12.
Analyst Ratings
BofA Securities upgraded its rating on Synopsys Inc. (NASDAQ: SNPS) to a Buy in a note to investors on December 16, 2022. The analysts firm previously had a Neutral rating on the stock.Synopsys Inc. (SNPS) has been rated Buy by analysts. According to 0 brokerage firms, SNPS is a sell, and 2 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Synopsys Inc. stock as buy, with 12 recommending it as overweight.
With a median target price of $485.00, the current consensus forecast for the stock is $410.00 – $515.00. Based on these forecasts, analysts predict Synopsys Inc. (SNPS) will achieve an average price target of $484.22.
