Representative Newhouse Acquires Up to $15,000 in Synopsys Shares
Representative Dan Newhouse disclosed a purchase of $1,001–$15,000 in Synopsys shares on December 31, filed on January 15, executed in his Edward Jones IRA account. This congressional buying interest could draw additional attention to SNPS and signal insider confidence in the company’s outlook.
1. Representative Newhouse Discloses SNPS Purchase
In a filing on January 15th, Representative Dan Newhouse (R-Washington) reported a purchase of Synopsys shares valued between $1,001 and $15,000 on December 31st. The transaction was executed in his Edward Jones IRA account, marking the first disclosed investment in Synopsys by Newhouse during the fourth quarter. This move follows his similar purchases in other technology and financial firms and may signal confidence in Synopsys’s growth prospects among policy-makers overseeing the semiconductor sector.
2. Q4 Results Exceed Estimates and Guidance Raised
Synopsys reported fourth-quarter earnings on December 10th, posting adjusted EPS of $2.90 versus the consensus estimate of $2.79 and revenue of $2.25 billion in line with forecasts. Year-over-year revenue rose 37.8%, while return on equity reached 7.89% and net margin stood at 18.89%. For the full fiscal year 2026, management set EPS guidance of $14.32 to $14.40, and first-quarter EPS guidance of $3.52 to $3.58. Analysts covering the stock currently project full-year EPS of $10.64, suggesting upside if Synopsys meets or exceeds its own outlook.
3. Valuation and Trading Range Metrics
Synopsys carries a market capitalization of $98.8 billion, a price-to-earnings ratio of 64.6 and a PEG ratio of 4.30. The shares have traded between a one-year low of $365.74 and a high of $651.73, with 50-day and 200-day moving averages at $455.35 and $504.95, respectively. A beta of 1.12 indicates slight volatility relative to the broader market. The company’s debt-to-equity ratio of 0.48 and current ratio of 1.62 reflect a moderate leverage profile and solid near-term liquidity.
4. Institutional and Insider Activity
In the third quarter, Stanley Laman Group increased its Synopsys stake by 542.9% to 12,877 shares worth $6.35 million, while Symphony Financial raised its holding by 4,780.9% to 40,219 shares valued at $20.64 million. Bank of New York Mellon, Mirae Asset and Westbourne Investments also adjusted positions, leaving institutional ownership at approximately 85.5%. On the insider front, CFO Shelagh Glaser sold 3,657 shares at an average of $460.77 on December 19th, netting $1.69 million, and Vice President Janet Lee sold 250 shares at $530.00 on January 12th, totaling $132,500. Insiders have offloaded 4,157 shares worth nearly $1.95 million over the past 90 days.