Synopsys stock: buy or sell?

SNPS stock price: $171.11 1.55% At close on May 22nd, 2020

Updated on:
May 22nd, 2020

5

Synopsys grew 1.55% to $171.11 after reaching all time highs on Friday. With Friday, it's been 5 climbing days in a row, gaining $12.38 or 7.84%.

Synopsys, Inc. provides electronic design automation (EDA) software products used to design and test integrated circuits (ICs).

Should I buy Synopsys stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. That's why is so important to define your own trading strategy that matches with your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, 2 buy setups work for Synopsys stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Synopsys stock a buy?

Financial institutions and banks post stock ratings everyday. Unfortunately, we couldn't detect any rating for SNPS stock for the last month.

Synopsys stock analysis

Daily outlook

Synopsys closed on Friday at $171.11 after reaching a new all time high ($171.47) and grew a fine 1.55%.

After topping to all time highs on Friday, Synopsys grew 1.55% to $171.11. Since April 13th when SNPS stock price broke up the SMA200d line, it gained $34.53 (25.28%). SNPS shows a strong short term uptrend with several rising tops and rising bottoms. Since its last bottom on May/15, SNPS climbed unceasignly breaking out to new all time highs.

SNPS stock chart (daily)

Weekly outlook

Synopsys touched new all time highs back again this week, marking to $171.47. Shares closed at $171.11 and rocketed 7.80% during the week.

Since price and SMA40w lines crossed up by mid April, SNPS climbed $34.53 (25.28%).

SNPS stock chart (weekly)

Synopsys stock price history

Synopsys stock went public on February 26th, 1992 with a price of $7.131. Since then, SNPS stock surged a 2,299.90%, with an average of 82.10% per year. If you had invested right after SNPS's IPO a $1,000 in Synopsys stock in 1992, it would worth $22,999.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Synopsys stock historical price chart

SNPS stock reached all-time highs on Friday with a price of $171.47.

Synopsys stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' SNPS stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we have not found any price prediction for Synopsys stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Synopsys reported extraordinary results for 2019-Q1 . Synopsys rocketed Earnings per Share (EPS) by 77.20%, beating experts consensus of $0.57. 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 skyrocketed a dazzling 14.54% to $3,121.06 million dollars from $2,724.88 marked in 2017. Likewise, its earnings margin (compared to revenues) escalated 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. When comparing this TTM figures with the last reported annuality, we can esteem Synopsys business evolution since October 2018: Annual sales up to January, compared to lastest yearly report, raised a slightly good 1.63%. Likewise, profit margin (net income/revenues) inched 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 M with a profit margin of 18.71%. Profit margin collapsed a -13.28% compared to previous quarter when profit margin was 31.99%. When comparing sales to same quarter last year, Synopsys sales marked a very good gain and jumped 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 buy shares of a company, it's always worth to review its ownership structure.

Synopsys shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.73% of all shares.

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:

SNPS
Market cap$25.7 B
Total shares150.2 M
Float shares149.6 M
  - Institutional holdings (%)91.0%
  - Insider holdings (%)0.7%
Shares in short selling0.0%

Synopsys summary

Friday, May 22nd, 2020
Open$169.68
Close$171.11
Day range$167.06 - $171.47
Previous close$168.49
Session gain1.55%
Average true range$4.64
50d mov avg$143.05
100d mov avg$145.48
200d mov avg$141.07
Daily patternlb03c
Weekly pattern

Synopsys performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For Synopsys, the comparison is made against .
Stock3m6m12m
SNPSSynopsys14.59%26.39%46.61%

Synopsys competitors

Unfortunately, we could not find any public company that could be defined as Synopsys competitor. This doesn't mean Synopsys does not have any competitor in the market, it's just we could not detected it.

    Latest Synopsys stock news