Synopsys, Inc (NASDAQ: SNPS)’s stock price has plunge by 2.78relation to previous closing price of 507.19. Nevertheless, the company has seen a 3.84% surge in its stock price over the last five trading sessions. zacks.com reported 2025-01-16 that Zacks.com users have recently been watching Synopsys (SNPS) quite a bit. Thus, it is worth knowing the facts that could determine the stock’s prospects.
Is It Worth Investing in Synopsys, Inc (NASDAQ: SNPS) Right Now?
Synopsys, Inc (NASDAQ: SNPS) has a price-to-earnings ratio of 35.90x that is above its average ratio. Additionally, the 36-month beta value for SNPS is 1.12. There are mixed opinions on the stock, with 16 analysts rating it as a “buy,” 4 rating it as “overweight,” 3 rating it as “hold,” and 0 rating it as “sell.”
The public float for SNPS is 153.83M and currently, short sellers hold a 1.92% ratio of that float. The average trading volume of SNPS on January 16, 2025 was 1.06M shares.
SNPS’s Market Performance
SNPS’s stock has seen a 3.84% increase for the week, with a 2.56% rise in the past month and a 0.72% gain in the past quarter. The volatility ratio for the week is 2.19%, and the volatility levels for the past 30 days are at 2.73% for Synopsys, Inc The simple moving average for the past 20 days is 5.21% for SNPS’s stock, with a -3.29% simple moving average for the past 200 days.
Analysts’ Opinion of SNPS
Many brokerage firms have already submitted their reports for SNPS stocks, with Redburn Atlantic repeating the rating for SNPS by listing it as a “Buy.” The predicted price for SNPS in the upcoming period, according to Redburn Atlantic is $600 based on the research report published on January 13, 2025 of the current year 2025.
Wells Fargo, on the other hand, stated in their research note that they expect to see SNPS reach a price target of $570. The rating they have provided for SNPS stocks is “Equal Weight” according to the report published on November 22nd, 2024.
Loop Capital gave a rating of “Buy” to SNPS, setting the target price at $675 in the report published on November 12th of the previous year.
SNPS Trading at -0.33% from the 50-Day Moving Average
After a stumble in the market that brought SNPS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -17.17% of loss for the given period.
Volatility was left at 2.73%, however, over the last 30 days, the volatility rate increased by 2.19%, as shares surge +0.01% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +0.72% upper at present.
During the last 5 trading sessions, SNPS rose by +4.01%, which changed the moving average for the period of 200-days by -9.49% in comparison to the 20-day moving average, which settled at $495.51. In addition, Synopsys, Inc saw 7.40% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SNPS starting from MAHONEY RICHARD S., who sale 20,838 shares at the price of $506.01 back on Jan 15 ’25. After this action, MAHONEY RICHARD S. now owns 1,460 shares of Synopsys, Inc, valued at $10,544,205 using the latest closing price.
RICHARD S. MAHONEY, the Officer of Synopsys, Inc, proposed sale 20,838 shares at $506.01 during a trade that took place back on Jan 15 ’25, which means that RICHARD S. MAHONEY is holding shares at $10,544,205 based on the most recent closing price.
Stock Fundamentals for SNPS
Current profitability levels for the company are sitting at:
- 0.22 for the present operating margin
- 0.79 for the gross margin
The net margin for Synopsys, Inc stands at 0.36. The total capital return value is set at 0.13. Equity return is now at value 19.20, with 12.42 for asset returns.
Based on Synopsys, Inc (SNPS), the company’s capital structure generated 0.07 points at debt to capital in total, while cash flow to debt ratio is standing at 2.06. The debt to equity ratio resting at 0.08. The interest coverage ratio of the stock is 11.04.
Currently, EBITDA for the company is 1.36 billion with net debt to EBITDA at -1.97. When we switch over and look at the enterprise to sales, we see a ratio of 12.38. The receivables turnover for the company is 6.71for trailing twelve months and the total asset turnover is 0.48. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.44.
Conclusion
In conclusion, Synopsys, Inc (SNPS) has seen better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
