Synopsys stock: buy or sell?

SNPS stock price: $129.94 0.74% At close on August 19th, 2019

Updated on:
August 19th, 2019

3

Shares of Synopsys closed today at $129.94 and grew a slightly good 0.74%. Monday was the third climbing session in a row, marking 2.44%.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean SNPS will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

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.
Is SNPS a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-12KeyCorpn/aOverweight
2019-7-12KeyCorpn/aOverweight
2019-6-5Bank of American/aAverage
2019-4-3Needham & Company LLCn/aBuy
2019-4-3DA Davidsonn/aBuy
2019-4-10KeyCorpn/aOverweight
2019-3-28Needham & Company LLCTop PickBuy
2019-2-21DA DavidsonBuyPositive

Synopsys stock analysis

Daily outlook

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.

SNPS stock chart (daily)

Weekly outlook

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%).

SNPS stock chart (weekly)

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 $134.80

Predicting 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:
SNPS stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-12KeyCorpReiterates$135.00$152.0012.6%
2019-7-12KeyCorpRaises Target$135.00$152.0012.6%
2019-4-3Needham & Company LLCRaises Targetn/a$125.00-
2019-4-3DA DavidsonRaises Targetn/a$135.00-
2019-3-28Needham & Company LLCReiterates$115.00$120.004.3%
2019-2-21DA DavidsonRaises Targetn/a$125.00-
(in average)$128.30$134.805.0%
Moving in a range from $152.00 and $120.00, the price forecast for SNPS stock is $134.80. In average, analysts' outlook on SNPS price target is positive, upgrading the forecast by a 5.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On 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.
SNPS earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/an/an/a
2017-Q3-n/an/an/a
2017-Q42017-11-290.570.6921.1%
2018-Q12018-02-210.650.7413.8%
2018-Q22018-05-230.730.67-8.2%
2018-Q32018-08-220.650.52-20.0%
2018-Q42018-12-050.411.66304.9%
2019-Q12019-02-200.571.0177.2%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 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%.

SNPS annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$1,950 M-$248 M12.7%-
2014$2,060 M5.64%$259 M12.6%4.57%
2014$2,057 M-0.12%$259 M12.6%0.00%
2015$2,230 M8.39%$226 M10.1%-12.81%
2015$2,242 M0.55%$226 M10.1%0.00%
2016$2,430 M8.38%$267 M11.0%18.10%
2016$2,423 M-0.31%$267 M11.0%0.00%
2017$2,730 M12.69%$137 M5.0%-48.82%
2017$2,725 M-0.19%$137 M5.0%0.00%
2018$3,121 M14.54%$433 M13.9%216.72%
TTM $3,172 M1.63%$590 M18.6%36.35%

Quarterly financial results

Synopsys 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.
SNPS quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$681 M-$53 M7.8%-
2017-Q3$696 M2.22%$117 M16.8%119.00%
2017-Q4$697 M0.15%$-120 M-17.2%-202.85%
2018-Q1$769 M10.45%$-4 M-0.5%-96.93%
2018-Q2$777 M0.96%$102 M13.2%-2,876.27%
2018-Q3$780 M0.37%$79 M10.2%-22.51%
2018-Q4$795 M1.97%$254 M32.0%220.28%
2019-Q1$820 M3.18%$154 M18.7%-39.64%

Synopsys ownership

When 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:

SNPSADSKANSSCDNSCEVA
Market cap$19.4 B$31.7 B$17.6 B$19.5 B$700.0 M
Total shares149.3 M219.6 M83.9 M281.0 M22.0 M
Float shares148.9 M219.3 M83.4 M275.4 M21.5 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 selling0.0%0.0%0.0%0.0%0.0%

Synopsys summary

Monday, August 19th, 2019
Open$130.58
Close$129.94
Day range$128.68 - $131.27
Previous close$128.98
Session gain0.74%
Average true range$3.94
50d mov avg$131.20
100d mov avg$124.70
200d mov avg$109.48
Daily patternlb01a
Weekly pattern lb02a

Synopsys performance

Stocks 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.
Stock3m6m12m
SNPSSynopsys11.34%27.02%27.23%
ADSKAutodesk-17.32%-10.12%8.90%
ANSSANSYS11.75%20.10%21.67%
CDNSCadence Design Sy...0.96%31.84%53.43%
CEVA 41.92%10.13%11.01%
IMIIntermolecular1.71%6.25%-11.85%
INTCIntel6.69%-8.86%1.66%
NATINational Instrume...7.11%-5.48%-2.46%
PDFSPDF Solutions-5.43%-4.17%19.05%
XPERXperi-13.65%-13.80%22.62%

Synopsys competitors

We chose a few stocks to conform a list of Synopsys competitors to watch if you are interested in investing in SNPS:

Latest Synopsys stock news