Synopsys Inc . (NASDAQ:SNPS) CEO Ghazi Sassine has made significant transactions in the company's stock, according to a recent SEC filing. On May 24, Sassine sold 10,294 shares of common stock at prices ranging from $580.06 to $584.34, netting a total of approximately $5.99 million.
The transactions occurred on a single day and represent a weighted average sale price of $582.4073 per share. Following the sale, Sassine's direct ownership in Synopsys decreased to 62,568 shares of common stock.
In addition to the sale, the filing revealed that Sassine also acquired 10,294 shares of Synopsys common stock at a price of $90.51 per share on the same day, amounting to a total of $931,709. The acquisition and subsequent sale of shares were executed in accordance with a pre-arranged trading plan under Rule 10b5-1, which allows insiders to set up a predetermined plan for buying or selling stock at a future date.
The timing and structure of these transactions allow insiders to trade their company's stock in a pre-established manner to avoid accusations of insider trading. This particular trading plan was adopted on September 27, 2023.
Synopsys, headquartered in Sunnyvale, California, is a leader in electronic design automation software and services. The company's solutions are used to design and test integrated circuits and electronic systems.
The SEC filing provides transparency into the trading activities of Synopsys' executives, offering investors a glimpse into the actions taken by insiders which may reflect their confidence in the company's future performance.
InvestingPro Insights
Synopsys Inc. (NASDAQ:SNPS) has recently been in the spotlight due to its CEO's stock transactions, and investors are keenly observing the company's financial health and market performance. Based on real-time data from InvestingPro, Synopsys boasts a robust market cap of $88.64 billion, indicative of its significant presence in the software industry. The company's performance is further underscored by its impressive gross profit margin, which stands at a high 80.39% for the last twelve months as of Q2 2024. This margin reflects the company's efficiency in managing its cost of goods sold and its ability to retain a substantial portion of its revenue as gross profit.
InvestingPro Tips highlight that Synopsys is trading at a high earnings multiple, with a P/E ratio of 61.74, and an adjusted P/E ratio for the last twelve months as of Q2 2024 at 62.89. This suggests that investors are willing to pay a premium for the company's earnings, potentially due to their expectations of future growth or the company's dominant position as a prominent player in the software industry. Additionally, the company has seen a revenue growth of 25.53% over the last twelve months as of Q2 2024, signaling a strong expansion in its business operations.
For those interested in exploring further, InvestingPro provides additional insights into Synopsys' financial metrics and market performance. There are over 15 InvestingPro Tips available, including the company's liquidity, debt levels, and valuation multiples, which can offer a comprehensive understanding of its financial position. For a deeper dive into Synopsys' prospects and to access these expert tips, visit InvestingPro. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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