Cadence Design Systems' (CDNS) "Neutral" Rating Reaffirmed at Piper Sandler

Key Points

• Piper Sandler downgraded Cadence Design Systems from "overweight" to "neutral," setting a target price of $355.00, indicating a potential upside of 6.36% from its current price.
52-week high of $335.16 and has an impressive quarterly revenue growth of 20.2% year-over-year.
• Institutional investors significantly increased their stake in the company, with hedge funds owning 84.85% of Cadence's stock.

Piper Sandler reiterated their neutral rating on shares of Cadence Design Systems (NASDAQ:CDNS - Free Report) in a research report released on Tuesday, MarketBeat reports. Piper Sandler currently has a $355.00 price target on the software maker's stock, up from their prior price target of $328.00.

Several other analysts also recently weighed in on CDNS. Rosenblatt Securities reiterated a "neutral" rating and issued a $300.00 price objective on shares of Cadence Design Systems in a research report on Friday, July 25th. Bank of America upped their price objective on shares of Cadence Design Systems from $320.00 to $350.00 and gave the company a "buy" rating in a research note on Tuesday, April 29th. Wall Street Zen cut Cadence Design Systems from a "buy" rating to a "hold" rating in a research note on Sunday, July 20th. Wells Fargo & Company raised their target price on Cadence Design Systems from $350.00 to $365.00 and gave the stock an "overweight" rating in a research note on Friday, May 16th. Finally, KeyCorp reissued an "overweight" rating and set a $358.00 price objective (up from $340.00) on shares of Cadence Design Systems in a research report on Thursday, July 10th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and twelve have assigned a buy rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $364.33.

Cadence Design Systems Price Performance

Shares of CDNS stock traded down $7.60 on Tuesday, reaching $356.97. The company's stock had a trading volume of 2,070,008 shares, compared to its average volume of 2,097,989. Cadence Design Systems has a 12-month low of $221.56 and a 12-month high of $376.45. The stock's 50 day simple moving average is $312.60 and its 200-day simple moving average is $290.37. The company has a quick ratio of 2.90, a current ratio of 2.82 and a debt-to-equity ratio of 0.49. The company has a market capitalization of $97.47 billion, a P/E ratio of 96.48, a PEG ratio of 4.88 and a beta of 0.99.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its earnings results on Monday, July 28th. The software maker reported $1.65 earnings per share for the quarter, beating analysts' consensus estimates of $1.56 by $0.09. The business had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.25 billion. Cadence Design Systems had a net margin of 19.88% and a return on equity of 29.65%. Cadence Design Systems's quarterly revenue was up 20.2% on a year-over-year basis. During the same period last year, the firm posted $1.28 earnings per share. As a group, equities analysts predict that Cadence Design Systems will post 5.41 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director James D. Plummer sold 868 shares of the stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $319.95, for a total value of $277,716.60. Following the transaction, the director owned 23,996 shares of the company's stock, valued at $7,677,520.20. This represents a 3.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Paul Cunningham sold 1,000 shares of Cadence Design Systems stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $306.35, for a total value of $306,350.00. Following the completion of the sale, the vice president owned 105,499 shares of the company's stock, valued at $32,319,618.65. The trade was a 0.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 3,698 shares of company stock worth $1,126,667 over the last three months. 1.99% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Brighton Jones LLC increased its holdings in shares of Cadence Design Systems by 80.2% during the 4th quarter. Brighton Jones LLC now owns 1,519 shares of the software maker's stock valued at $456,000 after purchasing an additional 676 shares in the last quarter. Highview Capital Management LLC DE raised its holdings in shares of Cadence Design Systems by 2.7% during the fourth quarter. Highview Capital Management LLC DE now owns 6,304 shares of the software maker's stock valued at $1,894,000 after acquiring an additional 163 shares during the last quarter. Blair William & Co. IL boosted its stake in shares of Cadence Design Systems by 14.0% in the fourth quarter. Blair William & Co. IL now owns 5,181 shares of the software maker's stock worth $1,557,000 after acquiring an additional 636 shares during the last quarter. Level Four Advisory Services LLC purchased a new position in Cadence Design Systems in the 4th quarter valued at $364,000. Finally, Allianz SE acquired a new stake in Cadence Design Systems during the 4th quarter worth $217,000. Hedge funds and other institutional investors own 84.85% of the company's stock.

About Cadence Design Systems

Cadence Design Systems, Inc provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification.