Synopsys Inc . (NASDAQ:SNPS) Executive Chair Aart de Geus has sold a total of 11,057 shares of company stock, valued at over $6.6 million, according to a recent SEC filing. The transactions occurred on June 26 and 27, with the shares sold at prices ranging from $600.5733 to $602.588.
In addition to the sales, the filing revealed that de Geus acquired 11,057 shares through the exercise of options at a price of $89.76 per share, amounting to a total of $992,476. These transactions are part of a pre-arranged trading plan under Rule 10b5-1, which allows company insiders to set up a predetermined plan to buy or sell company stocks at a time when they are not in possession of material non-public information.
The sales were executed in multiple transactions with prices for the June 26 sales ranging from $600.000 to $601.265, and the June 27 sales ranging from $600.31 to $605.78. This indicates a weighted average sale price per share, as detailed in the footnotes of the SEC filing.
After these transactions, the updated ownership stakes in Synopsys by de Geus include direct ownership of 106,983 shares and indirect ownership through a family trust and partnership totaling 137,726 shares, as well as separate property trust holdings of 186,551 shares.
Investors often monitor insider transactions as they can provide insights into executives' confidence in the company's future performance. The trading plan under Rule 10b5-1 provides executives the ability to sell shares over a predetermined schedule to minimize the market impact and avoid concerns about trading on inside information.
Synopsys Inc., headquartered in Sunnyvale, California, is a leader in electronic design automation software and services, essential for the development of advanced semiconductor chips and electronic systems.
In other recent news, Synopsys has been making significant strides in the tech industry. KeyBanc has increased Synopsys' price target to $690 from $675, maintaining an Overweight rating on the stock. The firm's analyst cited the growing opportunity in 3D integrated circuits (3D-IC) within the electronic design automation (EDA) sector as a significant factor for the increased target.
Simultaneously, Synopsys has announced the availability of its AI-driven multi-die reference flow and Synopsys IP for Intel (NASDAQ:INTC) Foundry's embedded multi-die interconnect bridge (EMIB) technology. This development aims to expedite the design and production of heterogeneous multi-die systems. The collaboration between Intel Foundry and Synopsys aims to offer designers a scalable solution for rapid heterogeneous integration using Intel Foundry's EMIB technology.
Furthermore, Synopsys has launched the first complete PCIe 7.0 IP solution, marking a significant milestone in data transfer technology for AI and high-performance computing (HPC) data centers. This development is set to empower chipmakers with the capacity to manage the bandwidth and latency demands associated with massive AI data workloads.
In financial news, Synopsys reported strong financial results for the second quarter of fiscal year 2024, with a 15% year-over-year increase in revenue to $1.45 billion and a 26% surge in non-GAAP earnings per share. This led to an increase in the company's full-year revenue and non-GAAP EPS forecasts. Following these results, Synopsys received a reiterated Buy rating from Griffin Securities and Deutsche Bank, with price targets of $650 and $645 respectively.
Lastly, Deutsche Bank adjusted its outlook on Synopsys by increasing the price target to $645 from $635 while maintaining a Buy rating on the stock. This change reflects the company's robust demand prospects and strategic developments.
InvestingPro Insights
Synopsys Inc. (NASDAQ:SNPS), a major player in the realm of electronic design automation, continues to demonstrate robust financial health as reflected in recent real-time data. The company boasts an impressive market capitalization of $92.55 billion, underlining its significant presence in the software industry. With a gross profit margin of 80.39% for the last twelve months as of Q2 2024, Synopsys showcases its ability to efficiently manage its cost of goods sold and maintain profitability.
An InvestingPro Tip highlights the company's strong gross profit margins, which is a testament to its operational efficiency and pricing strategy. Moreover, Synopsys has been trading at a high earnings multiple, with a P/E ratio of 64.52 and an adjusted P/E ratio of 65.77 for the same period. While this indicates investor confidence in future growth, it also suggests that the stock is priced with optimism regarding continued earnings performance.
Investors considering Synopsys should note that the company has been trading near its 52-week high, at 96.26% of this peak value, and that analysts predict the company will maintain profitability this year. For those looking to delve deeper into the financial nuances of Synopsys, there are additional InvestingPro Tips available, which can be accessed through the company-specific page on InvestingPro. Utilizing the promo code PRONEWS24, readers can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to an expansive range of insights and data to inform their investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.