SNPS stock rose in morning trade on December 10, 2021, after the company said it would buy back $1 billion worth of stock.
Synopsys Approves Stock Repurchase Program with Authorization Up to $1 Billion
MOUNTAIN VIEW, Calif., Dec. 10, 2021 /PRNewswire/ — Synopsys, Inc. (Nasdaq: SNPS) today announced that its Board of Directors has approved a new stock repurchase program with authorization to purchase up to $1 billion of common stock.
“We continue to execute very well, balancing our strategic investments to grow the business, expand margins and return capital to shareholders,” said Trac Pham, chief financial officer of Synopsys. “This new stock repurchase program with an increased authorization amount of up to $1 billion reinforces our ongoing commitment to generate sustainable, long-term shareholder value.”
The program replaces Synopsys’ prior stock repurchase program, which was originally approved by Synopsys’ Board of Directors in 2002. The stock repurchase program does not obligate Synopsys to acquire any particular amount of common stock, and the program may be suspended or terminated at any time by Synopsys’ co-chief executive officers, chief financial officer or the Board of Directors at their sole discretion.
Synopsys, Inc. (Nasdaq: SNPS) is the Silicon to Software™ partner for innovative companies developing the electronic products and software applications we rely on every day. As an S&P 500 company, Synopsys has a long history of being a global leader in electronic design automation (EDA) and semiconductor IP and offers the industry’s broadest portfolio of application security testing tools and services. Whether you’re a system-on-chip (SoC) designer creating advanced semiconductors, or a software developer writing more secure, high-quality code, Synopsys has the solutions needed to deliver innovative products.
Synopsys price target raised to $400 from $335 at DA Davidson
On December 2, 2021, DA Davidson analyst Thomas Diffely raised the firm’s price target on Synopsys to $400 from $335 and keeps a Buy rating on the shares after its Q4 earnings beat and above-consensus Q1 guide. The quarter reflects both solid execution and broad based strength across all segments and geographies, with records across revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th..., earnings per share, backlog, and operating cash flowThe cash flow statement provides a detailed overview of the cash inflows and outflows of a company over a specified period of time. It includes cash received from operations, inves... in FY21 highlight the robust demand for Synopsys solutions, the analyst tells investors in a research note. Design activity continues to drive the industry higher, Diffely adds, stating that he expects rising chip complexity, AI adoption, the 5G proliferation to drive robust demand for all advanced EDA tools.
Synopsys price target raised to $415 from $400 at Wells Fargo
On December 2, 2021, Wells Fargo analyst Gary Mobley raised the firm’s price target on Synopsys to $415 from $400 and keeps an Overweight rating on the shares following disclosure the company’s backlog, or RPOs, increase 47% quarter-over-quarter. Synopsys also announced the transition whereby Trac Pham, CFO, will retire once a successor is in place, Mobley adds.
Synopsys price target raised to $395 from $347 at KeyBanc
On December 2, 2021, KeyBanc analyst Jason Celino raised the firm’s price target on Synopsys to $395 from $347 given his confidence in EDA tailwinds and margin expansion opportunities. The analyst notes Synopsys reported in line Q4 results and issued meaningfully better full year 2022 revenue guidance above the double-digit baseline expectations. Celino keeps an Overweight rating on the shares.
SNPS Stock Technical Analysis
The long and short term trends are both positive. This is looking good! When comparing the yearly performance of all stocks, we notice that SNPS is one of the better performing stocks in the market, outperforming 86% of all stocks. On top of that, SNPS also shows a nice and consistent pattern of rising prices. SNPS is one of the better performing stocks in the Software industry, it outperforms 83% of 335 stocks in the same industry. There is a support zone ranging from 342.15 to 342.42. This zone is formed by a combination of multiple trend lines in multiple time frames. There is resistance at 364.37 from a horizontal line in the daily time frame. SNPS has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. Click here to sign up for email alerts on when SNPS stock is a good entry.