Synopsys stock: buy or sell?
August 19th, 2019
Synopsys, Inc. provides electronic design automation (EDA) software products used to design and test integrated circuits (ICs).
Should I buy Synopsys stock?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to define your own trading plan that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
Currently, Synopsys stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Synopsys stock a buy?
Banks and financial institutions publish stock ratings everyday.At Stocks2.com, we gathered 8 ratings published for SNPS stock in the last 30 days. The general sentiment of these ratings is bullish for SNPS stock, with 6 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-6-5||Bank of America||n/a||Average|
|2019-4-3||Needham & Company LLC||n/a||Buy|
|2019-3-28||Needham & Company LLC||Top Pick||Buy|
Synopsys stock analysis
Synopsys grew a slightly good 0.74% and closed at $129.94.
Synopsys shares grew 0.74% to $129.94 today. SNPS is soaring again after a 5.17% correction from its last top on Tuesday at $132.86. Since last Wednesday when SNPS stock price broke down the SMA50d line, it slid $-2.18 per share (-1.65%). On Jul/26, SNPS hit new all time highs, pushing higher previous ATH of $138.25 recorded on July 25th. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Shares of Synopsys ended this week at $129.94 and stepped up a slightly good 0.74%. Late July SNPS plummed a frightening -5.98% in just one week.
Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $138.72 resistance. Not so far away is the last price record Synopsys marked late July. By mid March, SMA20w and SMA40w crossed up triggering a rise of 19.03%. Since mid January when SNPS stock price broke up the SMA40w line, it gained $42.23 (48.15%).
Synopsys stock price history
Synopsys IPO was on February 26th, 1992 at $7.13 per share1. Since then, SNPS stock grew a 1,722.40%, with an average of 63.80% per year. If you had invested $1,000 in Synopsys stock in 1992, it would worth $17,224.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Synopsys stock historical price chart
SNPS stock reached all-time highs on July/26 with a price of $138.72.
Synopsys stock price target is $134.80Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 6 price predictions for Synopsys stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-4-3||Needham & Company LLC||Raises Target||n/a||$125.00||-|
|2019-4-3||DA Davidson||Raises Target||n/a||$135.00||-|
|2019-3-28||Needham & Company LLC||Reiterates||$115.00||$120.00||4.3%|
|2019-2-21||DA Davidson||Raises Target||n/a||$125.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn February, Synopsys reported its latest financial data, posting an outstanding climb for the Earnings per Share (EPS) ratio. Experts were expecting $0.57 per share, but Synopsys posted $1.01.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Synopsys annual sales rocketed a super good 14.54% to $3,121.06 M dollars from $2,724.88 marked in 2017. Aligned with this, its earnings margin (compared to revenues) jumped to 13.86%, that is $432.52 million. To have an updated view of the financial situation of Synopsys, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Synopsys TTM sales up to January 2019 were $3,172.03 and income was $589.72 million dollars. If we compare this TTM figures with the last reported annuality, we can review Synopsys business evolution since October 2018: Annual turnover up to January, compared to lastest yearly report, gained a slightly good 1.63%. In the same way, profit margin (net income/revenues) raised at 13.86%.
|2013||$1,950 M||-||$248 M12.7%||-|
|2014||$2,060 M||5.64%||$259 M12.6%||4.57%|
|2014||$2,057 M||-0.12%||$259 M12.6%||0.00%|
|2015||$2,230 M||8.39%||$226 M10.1%||-12.81%|
|2015||$2,242 M||0.55%||$226 M10.1%||0.00%|
|2016||$2,430 M||8.38%||$267 M11.0%||18.10%|
|2016||$2,423 M||-0.31%||$267 M11.0%||0.00%|
|2017||$2,730 M||12.69%||$137 M5.0%||-48.82%|
|2017||$2,725 M||-0.19%||$137 M5.0%||0.00%|
|2018||$3,121 M||14.54%||$433 M13.9%||216.72%|
|TTM||$3,172 M||1.63%||$590 M18.6%||36.35%|
Quarterly financial resultsSynopsys posted $820.40 million in revenues for 2019-Q1, a 3.18% improvement compared to previous quarter. Reported quarter income marked $153.51 million with a profit margin of 18.71%. Profit margin plummed a -13.28% compared to previous quarter when profit margin was 31.99%. When comparing turnover to same quarter last year, Synopsys sales marked a great gain and escalated a 6.63%. Looking back to recent quarterly results, Synopsys posted 7 negative quarters in a row.
|2017-Q2||$681 M||-||$53 M7.8%||-|
|2017-Q3||$696 M||2.22%||$117 M16.8%||119.00%|
|2017-Q4||$697 M||0.15%||$-120 M-17.2%||-202.85%|
|2018-Q1||$769 M||10.45%||$-4 M-0.5%||-96.93%|
|2018-Q2||$777 M||0.96%||$102 M13.2%||-2,876.27%|
|2018-Q3||$780 M||0.37%||$79 M10.2%||-22.51%|
|2018-Q4||$795 M||1.97%||$254 M32.0%||220.28%|
|2019-Q1||$820 M||3.18%||$154 M18.7%||-39.64%|
Synopsys ownershipWhen you are planning to invest in shares of a company, it's worth to review its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Synopsys, 0.68% of all outstanding shares are owned by its staff.
Bearish positions for SNPS stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Synopsys:
|Market cap||$19.4 B||$31.7 B||$17.6 B||$19.5 B||$700.0 M|
|Total shares||149.3 M||219.6 M||83.9 M||281.0 M||22.0 M|
|Float shares||148.9 M||219.3 M||83.4 M||275.4 M||21.5 M|
|- Institutional holdings (%)||92.8%||98.7%||98.2%||90.3%||93.8%|
|- Insider holdings (%)||0.7%||0.2%||1.2%||1.6%||2.0%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Monday, August 19th, 2019|
|Day range||$128.68 - $131.27|
|Average true range||$3.94|
|50d mov avg||$131.20|
|100d mov avg||$124.70|
|200d mov avg||$109.48|
Synopsys performanceStocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For Synopsys, the comparison is made against Autodesk, ANSYS, Cadence Design Systems, CEVA, Intermolecular, Intel, National Instruments, PDF Solutions and Xperi.
|CDNSCadence Design Sy...||0.96%||31.84%||53.43%|
Synopsys competitorsWe chose a few stocks to conform a list of Synopsys competitors to watch if you are interested in investing in SNPS:
- Autodesk (ADSK)
- ANSYS (ANSS)
- Cadence Design Systems (CDNS)
- CEVA (CEVA)
- Intermolecular (IMI)
- Intel (INTC)
- National Instruments (NATI)
- PDF Solutions (PDFS)
- Xperi (XPER)
Latest Synopsys stock news
- Seeking AlphaSynopsys: A Growth Model Of AcquisitionsMay 22, 2019
- InvestorPlace3 Big Stock Charts for Tuesday: Synopsys, DISH Network and WellCare Health PlansMay 21, 2019
- Investors.comDow Jones Futures: Synopsys Leads 4 Top Stocks Near Buy Points Moving On EarningsFebruary 20, 2019
- Seeking AlphaSynopsys: The Time Has ComeSeptember 25, 2018