Synopsys’ (SNPS) CEO Sassine Ghazi recently sold the company’s shares worth $5.37 million. SNPS is a software company that specializes in electronic design automation (EDA) and semiconductor IP for chip design.
According to the SEC filing, Ghazi sold 11,366 SNPS shares on March 3 at a weighted average price of $463.75 per share. These shares were obtained by exercising stock options at $89.76 per share.
It is worth noting that even after the latest Informative Sell transaction, Ghazi owns about 70,920 million Synopsys shares worth $32.43 million.
Insider Sale Follows Synopsys’ Decent Fiscal Q1 Results
It is worth noting that the CEO sold Synopsys stock a week after the company released its Fiscal Q1 earnings report. In the reported quarter, the company surpassed revenue and earnings expectations. However, sales witnessed a 4% year-over-year decline, while adjusted EPS was down 10%.
Looking forward, SNPS expects solid growth in key areas like AI and HPC but faces challenges in industrial, automotive, and consumer electronics markets, especially in China. For Fiscal Year 2025, it forecasts revenue between $6.05 billion and $6.745 billion, with adjusted EPS ranging from $14.88 to $14.96.
Insiders Sentiment for SNPS Stock Is Currently Bearish
It is worth highlighting that Ghazi is not the only one who reduced his stake in the company. Based on other informative insider transactions from the last three months, corporate insiders have sold $15.8 million worth of SNPS stock. Overall, TipRanks’ Insider Trading Activity Tool shows that insider confidence in the stock is currently Negative.
Investors may benefit from keeping an eye on transactions made by key insiders, as these transactions typically reflect their confidence in the company’s prospects. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
What Is the Price Target for Synopsys?
Turning to Wall Street, SNPS stock has a Strong Buy consensus rating based on nine Buys and one Hold assigned in the last three months. At $620.30, the average Synopsys price target implies a 39.25% upside potential. Shares of the company have declined 8.22% year-to-date.
