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Synopsys, Inc. (SNPS) Stock Analysis

Catalyst-Driven edge

SellModerate Confidence

Technology · Software - Infrastructure

Sell if holding. Analyst target reached at $499.34 — A.R:R is negative (-0.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Technology): -0.8.

Synopsys is a global leader in EDA software, simulation & analysis (Ansys, acquired July 2025), and semiconductor IP solutions across two segments: Design Automation and Design IP. Customers are primarily semiconductor and electronics systems companies; approximately half of... Read more

$499.34+2.2% A.UpsideScore 5.0/10#68 of 78 Software - Infrastructure
QualityF-score7 / 9FCF yield3.24%
Stop $472.87Target $509.32(resistance)A.R:R -0.3:1
Analyst target$537.53+7.6%26 analysts
$509.32our TP
$499.34price
$537.53mean
$404
$650

Sell if holding. Analyst target reached at $499.34 — A.R:R is negative (-0.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Technology): -0.8. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.0/10, moderate confidence.

Passes 5/9 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: moderate.

Recent Developments — Synopsys, Inc.

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
Strong earnings beat streak (3/4)
Risks
Analyst target reached - limited upside remaining
Sector modifier (Technology): -0.8
Weak overall score: 5.0/10

Key Metrics

P/E (TTM)76.3
P/E (Fwd)29.2
Mkt Cap$95.5B
EV/EBITDA64.5
Profit Mgn13.8%
ROE5.5%
Rev Growth65.5%
Beta1.25
DividendNone
Rating analysts31

Quality Signals

Piotroski F7/9MoatNarrow

Options Flow

P/C1.93bearish
IV68%elevated
Max Pain$260-47.9% vs spot

Material Events(8-K, last 90d)

  • 2026-04-20Item 5.02LOW
    Shareholders approved the Amended and Restated Equity Incentive Plan at the April 16, 2026 annual meeting, extending eligibility to non-employee directors. Routine compensatory arrangement approval.
    SEC filing →
  • 2026-02-19Item 5.02LOW
    Peter A. Shimer appointed to Board of Directors as independent director and Audit Committee member, effective February 14, 2026. Former COO/CFO of Deloitte LLP (2007-2025). Routine board expansion; no reason cited.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

3 floor-breakers

Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static

Pe
1.2
Ps
2.1
Peg Ratio
3.5
Analyst Target
4.0
Forward Pe
4.2
Forward P/E: 29.2xPEG: 3.41Expensive valuation

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Macd
0.0
Obv
1.0
Volume
4.5
Rsi
5.0
Ma Position
8.0
Volume distribution (falling OBV)Above 200-MA but MA slope flat

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Value Rank
1.3
Quality Rank
5.2
Growth Rank
9.4
Industry growth leader
GatesMomentum 3.7<4.5A.R:R -0.3=NEGATIVEDeath cross (50MA < 200MA)EARNINGS PROXIMITY 8d<=14d (soft)Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
63 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $450.13Resistance $519.71

Price Targets

$473
$509
A.Upside+2.0%
A.R:R-0.3:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Target reached (-2.9% upside)
! Momentum score 3.7/10 — below 4.5 minimum
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-05-27 (8d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is SNPS stock a buy right now?

Sell if holding. Analyst target reached at $499.34 — A.R:R is negative (-0.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Technology): -0.8. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $472.87. Score 5.0/10, moderate confidence.

What is the SNPS stock price target?

Take-profit target: $509.32 (+2.2% upside). Prior stop was $472.87. Stop-loss: $472.87.

What are the risks of investing in SNPS?

Analyst target reached - limited upside remaining; Sector modifier (Technology): -0.8; Weak overall score: 5.0/10.

Is SNPS overvalued or undervalued?

Synopsys, Inc. trades at a P/E of 76.3 (forward 29.2). TrendMatrix value score: 3.0/10. Verdict: Sell.

What do analysts say about SNPS?

31 analysts cover SNPS with a consensus score of 3.9/5. Average price target: $538.

What does Synopsys, Inc. do?Synopsys is a global leader in EDA software, simulation & analysis (Ansys, acquired July 2025), and semiconductor IP...

Synopsys is a global leader in EDA software, simulation & analysis (Ansys, acquired July 2025), and semiconductor IP solutions across two segments: Design Automation and Design IP. Customers are primarily semiconductor and electronics systems companies; approximately half of revenue comes from outside the U.S. with 189 offices worldwide.

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