Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Director Robert G. Painter of Synopsys Inc (NASDAQ:SNPS) acquired 350 shares of common stock on September 11, 2025, according to a Form 4 filing with the Securities and Exchange Commission. The shares were purchased at a price of $425.4397, totaling $148,903. The purchase comes as the stock has experienced a significant 31% decline over the past week, despite the company maintaining impressive gross profit margins of 81% and its position as a prominent player in the software industry.
According to InvestingPro analysis, Synopsys currently trades at a P/E ratio of 56.35, suggesting premium valuation levels. Following the transaction, Painter directly owns 2291 shares of Synopsys. For deeper insights into Synopsys’s valuation and 14 additional ProTips, explore InvestingPro’s comprehensive research report.
In other recent news, Synopsys reported its third-quarter earnings, revealing total revenues of $1.74 billion, which fell short of the consensus estimate of $1.77 billion. The company also missed expectations with an adjusted operating margin of 38.5% compared to the anticipated 39.5% and adjusted earnings per share of $3.39, below the consensus of $3.80. The results were impacted by weaker-than-expected performance in the company’s intellectual property (IP) business, which contributed to a series of price target reductions by analysts. Piper Sandler, KeyBanc, Needham, and Stifel all lowered their price targets for Synopsys, citing various challenges within the IP segment. Piper Sandler now targets a price of $630, while KeyBanc and Needham have set their targets at $590 and $550, respectively. Stifel also adjusted its target to $550, maintaining a Buy rating on the stock. Meanwhile, Rosenblatt downgraded Synopsys from Buy to Neutral, with a revised price target of $605, highlighting the company’s underperformance in the IP sector. These developments come after Synopsys’ acquisition of Ansys, which contributed $78 million to the quarter’s revenue.
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