Synopsys Inc. (SNPS) attracts a new wave of investors despite economic turmoil

The closing price of Synopsys Inc. (NASDAQ: SNPS) was $369.84 for the day, up 3.51% from the previous closing price of $357.29. In other words, the price has increased by $+12.55 from its previous closing price. On the day, 748855 shares were traded. SNPS stock price reached its highest trading level at $370.17 during the session, while it also had its lowest trading level at $360.11.

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Our analysis of SNPS’s different ratios will help us gain a deeper understanding of the company. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 44.08 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 36.80. For the most recent quarter (mrq), Quick Ratio is recorded 1.00 and its Current Ratio is at 1.10. In the meantime, Its Debt-to-Equity ratio is 0.00 whereas as Long-Term Debt/Eq ratio is at 0.00.

Upgrades & Downgrades

On September 29, 2022, Deutsche Bank started tracking the stock assigning a Buy rating and target price of $420.Deutsche Bank initiated its Buy rating on September 29, 2022, with a $420 target price.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Feb 24 when Kankanwadi Sudhindra sold 4,000 shares for $361.08 per share. The transaction valued at 1,444,305 led to the insider holds 16,723 shares of the business.

RUNKEL JOHN F JR sold 3,464 shares of SNPS for $1,225,935 on Feb 17. The GC & Corporate Secretary now owns 25,112 shares after completing the transaction at $353.91 per share. On Jan 09, another insider, Ghazi Sassine, who serves as the President and COO of the company, sold 29,136 shares for $329.93 each. As a result, the insider received 9,612,846 and left with 52,609 shares of the company.

Valuation Measures:

As of this moment, Synopsys’s Price-to-Earnings (P/E) ratio for their current fiscal year is 61.13, and their Forward P/E ratio for the next fiscal year is 30.43. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 3.60. For the stock, the TTM Price-to-Sale (P/S) ratio is 11.09 while its Price-to-Book (P/B) ratio in mrq is 10.00.

Stock Price History:

Over the past 52 weeks, SNPS has reached a high of $391.17, while it has fallen to a 52-week low of $255.02. The 50-Day Moving Average of the stock is 351.97, while the 200-Day Moving Average is calculated to be 330.63.

Shares Statistics:

SNPS traded an average of 787.64K shares per day over the past three months and 727.49k shares per day over the past ten days. A total of 152.40M shares are outstanding, with a floating share count of 151.48M. Insiders hold about 0.20% of the company’s shares, while institutions hold 92.70% stake in the company. Shares short for SNPS as of Jan 12, 2023 were 1.75M with a Short Ratio of 1.90M, compared to 2.02M on Dec 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.15% and a Short% of Float of 1.31%.

Earnings Estimates

The firm’s stock currently is rated by 11 analysts. On average, analysts expect EPS of $2.5 for the current quarter, with a high estimate of $2.57 and a low estimate of $2.47, while EPS last year was $2.4. The consensus estimate for the next quarter is $2.56, with high estimates of $2.71 and low estimates of $2.32.

Analysts are recommending an EPS of between $10.89 and $10 for the fiscal current year, implying an average EPS of $10.38. EPS for the following year is $11.83, with 13 analysts recommending between $12.99 and $9.8.

Revenue Estimates

It is expected that $90B in revenue will be generated in the current quarter, according to 11 analysts. It ranges from a high estimate of $1.39B to a low estimate of $1.35B. As of the current estimate, Synopsys Inc.’s year-ago sales were $1.27B, an estimated increase of 7.00% from the year-ago figure. For the next quarter, 11 analysts are estimating revenue of $1.43B, an increase of 11.60% over than the figure of $7.00% in the same quarter last year. There is a high estimate of $1.47B for the next quarter, whereas the lowest estimate is $1.4B.

A total of 15 analysts have provided revenue estimates for SNPS’s current fiscal year. The highest revenue estimate was $5.84B, while the lowest revenue estimate was $5.76B, resulting in an average revenue estimate of $5.8B. In the same quarter a year ago, actual revenue was $5.08B, up 14.20% from the average estimate. Based on 14 analysts’ estimates, the company’s revenue will be $6.44B in the next fiscal year. The high estimate is $6.62B and the low estimate is $5.85B. The average revenue growth estimate for next year is up 11.10% from the average revenue estimate for this year.