Zacks Investment Research Downgrades Synopsys (SNPS) to Strong Sell

Synopsys (NASDAQ:SNPS) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report issued on Monday.

According to Zacks, “Synopsys is a vendor of electronic design automation (EDA) software to the semiconductor and electronics industries. Though the company’s 4Q17 top and bottom lines both came ahead of the respective estimates and marked year-over-year improvement as well, its escalating costs and expenses, which are thwarting margins, make us increasingly cautious about its near-term profitability. Moreover, its non-GAAP earnings projection for FY18 was also disappointing as it fell short of the Zacks Consensus Estimate. Furthermore, competition from peers, a challenging technology-spending environment and uncertainty surrounding the exact time of realizing acquisition synergies keep us cautious. Nonetheless, we believe the company’s continued focus on rolling out products, acquisitions and deal wins will boost results over the long run. Shares of Synopsys have outperformed the industry in the YTD period.”

Other analysts have also issued research reports about the company. Royal Bank Of Canada increased their price objective on Synopsys from $85.00 to $90.00 and gave the company an “outperform” rating in a research note on Thursday, August 17th. Needham & Company LLC reaffirmed a “buy” rating and set a $83.00 price objective (up previously from $77.00) on shares of Synopsys in a research note on Thursday, August 17th. BidaskClub raised Synopsys from a “buy” rating to a “strong-buy” rating in a research note on Thursday, August 17th. TheStreet lowered Synopsys from an “a” rating to a “c+” rating in a research note on Wednesday, November 29th. Finally, KeyCorp reissued an “overweight” rating and issued a $106.00 price target (up from $86.00) on shares of Synopsys in a research note on Thursday, November 30th. One analyst has rated the stock with a sell rating, two have issued a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company’s stock. Synopsys presently has a consensus rating of “Buy” and an average price target of $98.13.

Shares of Synopsys (NASDAQ:SNPS) opened at $87.34 on Monday. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.07 and a current ratio of 1.04. The company has a market capitalization of $13,300.00, a price-to-earnings ratio of 74.03, a P/E/G ratio of 4.12 and a beta of 1.01. Synopsys has a 52 week low of $57.80 and a 52 week high of $94.80.

Synopsys (NASDAQ:SNPS) last posted its quarterly earnings data on Wednesday, November 29th. The semiconductor company reported $0.69 EPS for the quarter, beating analysts’ consensus estimates of $0.57 by $0.12. The business had revenue of $696.60 million for the quarter, compared to analyst estimates of $650.72 million. Synopsys had a return on equity of 5.78% and a net margin of 5.01%. The business’s revenue for the quarter was up 9.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.77 earnings per share. research analysts expect that Synopsys will post 2.41 EPS for the current year.

In other news, EVP Joseph W. Logan sold 5,000 shares of Synopsys stock in a transaction dated Friday, December 1st. The stock was sold at an average price of $90.33, for a total value of $451,650.00. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Chi-Foon Chan sold 3,750 shares of Synopsys stock in a transaction dated Friday, December 1st. The shares were sold at an average price of $89.78, for a total value of $336,675.00. The disclosure for this sale can be found here. Over the last three months, insiders sold 29,824 shares of company stock worth $2,680,349. 1.82% of the stock is owned by corporate insiders.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in shares of Synopsys by 3.1% in the 2nd quarter. Vanguard Group Inc. now owns 15,500,829 shares of the semiconductor company’s stock valued at $1,130,474,000 after purchasing an additional 469,622 shares in the last quarter. Ameriprise Financial Inc. lifted its stake in shares of Synopsys by 3.0% in the 2nd quarter. Ameriprise Financial Inc. now owns 4,277,670 shares of the semiconductor company’s stock valued at $311,973,000 after purchasing an additional 125,190 shares in the last quarter. Janus Henderson Group PLC lifted its stake in shares of Synopsys by 14,458.8% in the 2nd quarter. Janus Henderson Group PLC now owns 3,226,957 shares of the semiconductor company’s stock valued at $235,342,000 after purchasing an additional 3,204,792 shares in the last quarter. Alkeon Capital Management LLC lifted its stake in shares of Synopsys by 0.4% in the 3rd quarter. Alkeon Capital Management LLC now owns 2,460,259 shares of the semiconductor company’s stock valued at $198,125,000 after purchasing an additional 10,000 shares in the last quarter. Finally, Swedbank lifted its stake in shares of Synopsys by 8.6% in the 3rd quarter. Swedbank now owns 2,262,107 shares of the semiconductor company’s stock valued at $182,167,000 after purchasing an additional 179,528 shares in the last quarter. 89.94% of the stock is currently owned by institutional investors and hedge funds.

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Synopsys Company Profile

Synopsys, Inc provides software, intellectual property (IP) and services. The Company supplies the electronic design automation (EDA) software that engineers use to design and test integrated circuits, also known as chips. It also offers IP products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves.

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