Prepare Yourself for Liftoff: Synopsys Inc. (SNPS)

Synopsys Inc. (NASDAQ: SNPS) stock jumped 0.59% on Wednesday to $395.39 against a previous-day closing price of $393.09. With 0.83 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.78 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $398.00 whereas the lowest price it dropped to was $390.58. The 52-week range on SNPS shows that it touched its highest point at $418.40 and its lowest point at $267.00 during that stretch. It currently has a 1-year price target of $433.38. Beta for the stock currently stands at 1.16.

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 up-trending over the past week, with a rise of 4.86%, but this was up by 8.47% over a month. Three-month performance surged to 8.18% while six-month performance rose 21.73%. The stock gained 28.80% in the past year, while it has gained 23.83% so far this year. A look at the trailing 12-month EPS for SNPS yields 5.93 with Next year EPS estimates of 12.21. For the next quarter, that number is 2.72. This implies an EPS growth rate of 30.70% for this year and 13.20% for next year. EPS is expected to grow by 17.02% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 48.10%.

Float and Shares Shorts:

At present, 152.40 million SNPS shares are outstanding with a float of 151.53 million shares on hand for trading. On Apr 27, 2023, short shares totaled 1.35 million, which was 0.88% higher than short shares on Mar 30, 2023. In addition to SNPS as the firm’s Synopsys, Inc., SNES serves as its SenesTech, Inc.

Institutional Ownership:

Through their ownership of 95.10% of SNPS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 58.32% of SNPS, in contrast to 31.76% held by mutual funds. Shares owned by individuals account for 0.81%. As the largest shareholder in SNPS with 8.31% of the stake, The Vanguard Group, Inc. holds 12,657,716 shares worth 12,657,716. A second-largest stockholder of SNPS, BlackRock Fund Advisors, holds 8,139,202 shares, controlling over 5.34% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in SNPS, holding 6,498,958 shares or 4.27% stake. With a 3.11% stake in SNPS, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 4,730,517 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.35% of SNPS stock, is the second-largest Mutual Fund holder. It holds 3,577,629 shares valued at 1.33 billion. Government Pension Fund – Global holds 1.82% of the stake in SNPS, owning 2,764,160 shares worth 1.03 billion.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Apr 29, 2023, SNPS reported revenue of $1.28B and operating income of $364.01M. The EBITDA in the recently reported quarter was $414.60M and diluted EPS was $1.89.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SNPS since 0 analysts follow the stock currently. 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 $470.00 and a low target of $410.00, the average target price over the next 12 months is $437.23. Based on these targets, SNPS could surge 18.87% to reach the target high and rise by 3.7% to reach the target low. Reaching the average price target will result in a growth of 10.58% 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.

Summary of Insider Activity:

Insiders traded SNPS stock several times over the past three months with 14 Buys and 1 Sells. In these transactions, 7,893 shares were bought while 4,000 shares were sold. The number of buy transactions has increased to 69 while that of sell transactions has risen to 57 over the past year. The total number of shares bought during that period was 249,635 while 249,234 shares were sold.