Cadence Design Systems (NASDAQ:CDNS) Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Cadence Design Systems from “buy” to “hold.” Despite the downgrade, analysts’ consensus remains “Moderate Buy,” with an average price target of $410.05.
• Cadence reported quarterly earnings of $2.11 per share, beating the $2.05 estimate, while revenue of $1.63 billion topped forecasts and grew 22% year over year.
• The stock opened at $329.52 and was up 1.8% on Thursday; it has traded between $262.75 and $416.69 over the past 12 months.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Thursday, Wall Street Zen reports.

A number of other brokerages also recently issued reports on CDNS. Weiss Ratings raised Cadence Design Systems from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 22nd. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $420.00 price objective (up from $400.00) on shares of Cadence Design Systems in a research note on Wednesday, October 7th. KeyCorp reaffirmed an "overweight" rating on shares of Cadence Design Systems in a report on Tuesday, October 27th. Oppenheimer reiterated a "market perform" rating and set a $300.00 target price (up from $275.00) on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Finally, Rosenblatt Securities reissued a "buy" rating and set a $420.00 target price on shares of Cadence Design Systems in a report on Friday, October 23rd. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $410.05.

Cadence Design Systems Stock Up 1.8%

Cadence Design Systems stock opened at $329.52 on Thursday. The stock has a market cap of $90.41 billion, a P/E ratio of 51.88, a P/E/G ratio of 3.07 and a beta of 1.10. The company has a quick ratio of 1.18, a current ratio of 1.36 and a debt-to-equity ratio of 0.29. Cadence Design Systems has a twelve month low of $262.75 and a twelve month high of $416.69. The company's 50-day moving average price is $320.85 and its two-hundred day moving average price is $327.40.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings data on Monday, October 26th. The software maker reported $2.11 earnings per share for the quarter, topping the consensus estimate of $2.05 by $0.06. The firm had revenue of $1.63 billion for the quarter, compared to analysts' expectations of $1.61 billion. Cadence Design Systems had a return on equity of 26.56% and a net margin of 22.51%. The company's quarterly revenue was up 22.0% compared to the same quarter last year. During the same quarter last year, the business earned $1.93 EPS. As a group, analysts expect that Cadence Design Systems will post 6.71 EPS for the current year.

Insiders Place Their Bets

In related news, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the firm's stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $350.07, for a total value of $437,587.50. Following the sale, the director directly owned 39,544 shares of the company's stock, valued at $13,843,168.08. This trade represents a 3.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 280 shares of the stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $339.00, for a total transaction of $94,920.00. Following the completion of the transaction, the vice president directly owned 31,720 shares of the company's stock, valued at $10,753,080. This trade represents a 0.88% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 8,960 shares of company stock valued at $2,834,139 in the last quarter. Corporate insiders own 0.49% of the company's stock.

Hedge Funds Weigh In On Cadence Design Systems

Large investors have recently bought and sold shares of the company. New York Life Investment Management LLC raised its holdings in shares of Cadence Design Systems by 2.5% in the 3rd quarter. New York Life Investment Management LLC now owns 46,331 shares of the software maker's stock worth $15,298,000 after purchasing an additional 1,118 shares during the period. 71 West Capital Partners lifted its stake in Cadence Design Systems by 1.2% in the third quarter. 71 West Capital Partners now owns 2,612 shares of the software maker's stock valued at $862,000 after purchasing an additional 31 shares during the last quarter. AlphaCore Capital LLC grew its holdings in Cadence Design Systems by 49.5% during the third quarter. AlphaCore Capital LLC now owns 4,466 shares of the software maker's stock valued at $1,475,000 after purchasing an additional 1,478 shares during the period. Fulcrum Asset Management LLP grew its holdings in Cadence Design Systems by 724.8% during the third quarter. Fulcrum Asset Management LLP now owns 2,928 shares of the software maker's stock valued at $949,000 after purchasing an additional 2,573 shares during the period. Finally, Bryn Mawr Trust Advisors LLC increased its position in Cadence Design Systems by 3.2% in the third quarter. Bryn Mawr Trust Advisors LLC now owns 1,015 shares of the software maker's stock worth $335,000 after buying an additional 31 shares during the last quarter. 84.85% of the stock is currently owned by institutional investors.

About Cadence Design Systems

Cadence Design Systems, Inc develops computational software, hardware, and semiconductor intellectual property used to design and verify electronic systems and integrated circuits. Its electronic design automation (EDA) solutions support chip development across areas such as digital and custom IC design, functional verification, emulation, prototyping, and system analysis.

The company also provides semiconductor IP, including processor cores, interconnect technologies, memory interfaces, and other building blocks that help customers develop complex chips.

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