Cadence Design Systems (NASDAQ:CDNS) Reaches New 12-Month High - Time to Buy?

Key Points

• Cadence Design Systems reached a new 52-week high of $334.00, with the last trade at $333.27 and a trading volume of 593,754 shares.
• Analysts have set new price targets for the stock, with Bank of America raising theirs to $350.00 and Goldman Sachs initiating coverage with a target of $380.00.
• The company reported earnings of $1.57 per share, exceeding expectations, and showed a revenue growth of 23.1% year-over-year.
• Cadence Design Systems has a market capitalization of $90.90 billion and an average analyst rating of "Moderate Buy" with a target price of $332.57.

Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report) reached a new 52-week high on Friday . The company traded as high as $334.00 and last traded at $333.27, with a volume of 593754 shares trading hands. The stock had previously closed at $324.64.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on CDNS shares. Bank of America raised their price target on Cadence Design Systems from $320.00 to $350.00 and gave the company a "buy" rating in a research report on Tuesday, April 29th. Wells Fargo & Company lifted their price objective on Cadence Design Systems from $350.00 to $365.00 and gave the stock an "overweight" rating in a report on Friday, May 16th. The Goldman Sachs Group started coverage on Cadence Design Systems in a report on Thursday, July 10th. They issued a "buy" rating and a $380.00 price objective on the stock. Needham & Company LLC reiterated a "buy" rating and issued a $325.00 price objective on shares of Cadence Design Systems in a report on Tuesday, May 13th. Finally, JPMorgan Chase & Co. upgraded Cadence Design Systems from a "neutral" rating to an "overweight" rating and lifted their price objective for the stock from $300.00 to $325.00 in a report on Thursday, April 24th. One analyst has rated the stock with a sell rating, two have issued a hold rating and twelve have assigned a buy rating to the stock. According to data from MarketBeat, Cadence Design Systems presently has an average rating of "Moderate Buy" and an average target price of $332.57.

Cadence Design Systems Stock Performance

The company has a 50-day simple moving average of $309.18 and a two-hundred day simple moving average of $288.52. The company has a debt-to-equity ratio of 0.52, a quick ratio of 2.90 and a current ratio of 3.07. The firm has a market capitalization of $90.90 billion, a P/E ratio of 84.23, a PEG ratio of 4.54 and a beta of 0.99.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings data on Monday, April 28th. The software maker reported $1.57 earnings per share for the quarter, beating the consensus estimate of $1.50 by $0.07. The business had revenue of $1.24 billion for the quarter, compared to analysts' expectations of $1.24 billion. Cadence Design Systems had a return on equity of 29.36% and a net margin of 22.18%. The business's revenue was up 23.1% on a year-over-year basis. During the same period in the previous year, the firm posted $1.17 EPS. As a group, equities analysts forecast that Cadence Design Systems, Inc. will post 5.41 EPS for the current year.

Insider Transactions at Cadence Design Systems

In other news, Director James D. Plummer sold 868 shares of the business's 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 sale, the director directly owned 23,996 shares of the company's stock, valued at $7,677,520.20. The trade was a 3.49% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Ita M. Brennan sold 180 shares of the business's stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $304.00, for a total transaction of $54,720.00. Following the completion of the transaction, the director owned 8,010 shares of the company's stock, valued at approximately $2,435,040. The trade was a 2.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 19,795 shares of company stock worth $6,065,087. Company insiders own 1.99% of the company's stock.

Hedge Funds Weigh In On Cadence Design Systems

Hedge funds have recently added to or reduced their stakes in the company. Smallwood Wealth Investment Management LLC purchased a new position in Cadence Design Systems in the 1st quarter worth approximately $25,000. Costello Asset Management INC purchased a new position in Cadence Design Systems in the 1st quarter worth approximately $25,000. Barrett & Company Inc. purchased a new position in Cadence Design Systems in the 2nd quarter worth approximately $31,000. Saudi Central Bank purchased a new position in Cadence Design Systems in the 1st quarter worth approximately $27,000. Finally, Valley National Advisers Inc. raised its holdings in Cadence Design Systems by 707.1% in the 1st quarter. Valley National Advisers Inc. now owns 113 shares of the software maker's stock worth $28,000 after acquiring an additional 99 shares during the last quarter. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Cadence Design Systems Company Profile

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.

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