Synopsys Inc. (NASDAQ: SNPS) stock fell -1.96% on Friday to $306.97 against a previous-day closing price of $313.11. With 1.1 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.03 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $312.71 whereas the lowest price it dropped to was $306.31. The 52-week range on SNPS shows that it touched its highest point at $391.17 and its lowest point at $255.02 during that stretch. It currently has a 1-year price target of $415.38. Beta for the stock currently stands at 1.25.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SNPS was down-trending over the past week, with a drop of -2.84%, but this was down by -14.49% over a month. Three-month performance dropped to -0.74% while six-month performance fell -2.99%. The stock lost -4.23% in the past year, while it has lost -16.70% so far this year. A look at the trailing 12-month EPS for SNPS yields 6.59 with Next year EPS estimates of 9.99. For the next quarter, that number is 1.84. This implies an EPS growth rate of 12.80% for this year and 13.11% for next year. EPS is expected to grow by 16.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 22.80%.
Float and Shares Shorts:
At present, 152.94 million SNPS shares are outstanding with a float of 152.02 million shares on hand for trading. On Jul 14, 2022, short shares totaled 1.66 million, which was 1.08% higher than short shares on Jun 14, 2022. In addition to Dr. Aart J. de Geus as the firm’s Co-Founder, Chairman & CEO, Mr. Sassine Ghazi serves as its Pres & COO.
Through their ownership of 92.23% of SNPS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 58.89% of SNPS, in contrast to 30.20% held by mutual funds. Shares owned by individuals account for 0.79%. As the largest shareholder in SNPS with 11.05% of the stake, The Vanguard Group, Inc. holds 16,892,560 shares worth 16,892,560. A second-largest stockholder of SNPS, T. Rowe Price Associates, Inc., holds 11,053,415 shares, controlling over 7.23% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in SNPS, holding 8,025,029 shares or 5.25% stake. With a 2.96% stake in SNPS, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 4,530,132 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.30% of SNPS stock, is the second-largest Mutual Fund holder. It holds 3,511,288 shares valued at 1.21 billion. Vanguard 500 Index Fund holds 2.23% of the stake in SNPS, owning 3,416,791 shares worth 1.18 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SNPS since 12 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SNPS analysts setting a high price target of $455.00 and a low target of $405.00, the average target price over the next 12 months is $429.40. Based on these targets, SNPS could surge 48.22% to reach the target high and rise by 31.93% to reach the target low. Reaching the average price target will result in a growth of 39.88% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SNPS will report FY 2022 earnings on 11/30/2022. Analysts have provided yearly estimates in a range of $8.85 being high and $8.81 being low. For SNPS, this leads to a yearly average estimate of $8.84. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Synopsys Inc. surprised analysts by $0.11 when it reported $2.10 EPS against a consensus estimate of $1.99. The surprise factor in the prior quarter was $0.13. Based on analyst estimates, the high estimate for the next quarter is $1.85 and the low estimate is $1.83. The average estimate for the next quarter is thus $1.84.
Summary of Insider Activity:
Insiders traded SNPS stock several times over the past three months with 12 Buys and 9 Sells. In these transactions, 43,645 shares were bought while 54,789 shares were sold. The number of buy transactions has increased to 91 while that of sell transactions has risen to 82 over the past year. The total number of shares bought during that period was 608,691 while 665,422 shares were sold.