Synopsys Inc. (NASDAQ:SNPS) shares fell to a low of $253.56 before closing at $254.34. Intraday shares traded counted 0.81 million, which was 19.38% higher than its 30-day average trading volume of 1.00M. SNPS’s previous close was $254.62 while the outstanding shares total 152.72M. The firm has a beta of 1.03, a 12-month trailing P/E ratio of 49.40, and a growth ratio of 3.36. The stock’s Relative Strength Index (RSI) is 59.13, with weekly volatility at 2.15% and ATR at 6.72. The SNPS stock’s 52-week price range has touched low of $169.44 and a $300.91 high. The stock traded lower over the last trading session, losing -0.11% on 05/28/21.
Investors have identified the Software – Infrastructure company Synopsys Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $38.85 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Synopsys Inc. (SNPS) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For SNPS, the company has in raw cash 1.46 billion on their books with 89.94 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 2.69 billion total, with 2.26 billion as their total liabilities.
SNPS were able to record 654.97 million as free cash flow during the 08/25/2021 quarter of the year, this saw their quarterly net cash flow reduce by 222.27 million. In cash movements, the company had a total of 700.3 million as operating cash flow.
Potential earnings growth for Synopsys Inc. (SNPS)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/25/2021 quarter of the year, Synopsys Inc. recorded a total of 1.02 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 15.91% coming in sequential stages and their sales for the 08/25/2021 quarter increasing by 5.27%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 213.99 million trying to sell their products during the last quarter, with the result yielding a gross income of 810.34 million. This allows shareholders to hold on to 152.72M with the recently reported earning now reading 1.28 cents per share. This is a figure that compared to analyst’s prediction for their 08/25/2021 (1.24 cents a share).
Having a look at the company’s valuation, the company is expected to record 4.94 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on SNPS sounds very interesting.
Is the stock of SNPS attractive?
In related news, Director, Nikias Chrysostomos L sold 1,000 shares of the company’s stock in a transaction that recorded on May 25. The sale was performed at an average price of 250.05, for a total value of 250,050. As the sale deal closes, the Co-CEO & President, CHAN CHI-FOON now sold 7,040 shares of the company’s stock, valued at 1,710,448. Also, Director, CHAFFIN JANICE sold 7,111 shares of the company’s stock in a deal that was recorded on May 21. The shares were price at an average price of 242.93 per share, with a total market value of 1,727,472. Following this completion of acquisition, the Sales & Corp Mktg Officer, Logan Joseph W now holds 6,054 shares of the company’s stock, valued at 1,491,730. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.
8 out of 13 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Synopsys Inc.. 0 analysts has assigned a Sell rating on the SNPS stock. The 12-month mean consensus price target for the company’s shares has been set at $302.00.