Cadence Design Systems, Inc. (CDNS) - What Are Analysts Saying About This Stock?

Key Points

• Analysts are broadly positive: Cadence has a “Moderate Buy” consensus from 22 analysts, with an average 12-month price target of $410.05; recent targets include $430 from Needham.
• Quarterly results topped expectations: The company reported $2.11 in earnings per share and $1.63 billion in revenue, beating analyst estimates, while revenue rose 22% year over year.
• Shares traded at $323.01 in the report, down $10.31 for the day. Institutional investors own 84.85% of the stock, while insiders have sold 11,736 shares over the prior 90 days.

Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report) has received a consensus rating of "Moderate Buy" from the twenty-two ratings firms that are currently covering the company, MarketBeat reports. Three research analysts have rated the stock with a hold rating, eighteen have given a buy rating and one has issued a strong buy rating on the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $410.05.

Several research firms recently issued reports on CDNS. Benchmark restated a "buy" rating on shares of Cadence Design Systems in a research note on Tuesday, July 28th. JPMorgan Chase & Co. increased their price objective on Cadence Design Systems from $405.00 to $420.00 and gave the stock an "overweight" rating in a research report on Tuesday, October 27th. KeyCorp reissued an "overweight" rating on shares of Cadence Design Systems in a report on Tuesday, October 27th. Needham & Company LLC boosted their target price on shares of Cadence Design Systems from $400.00 to $430.00 and gave the company a "buy" rating in a research report on Tuesday, October 27th. Finally, Deutsche Bank reissued a "buy" rating and issued a $420.00 target price (up from $400.00) on shares of Cadence Design Systems in a research report on Wednesday, October 7th.

Cadence Design Systems Stock Performance

NASDAQ:CDNS traded down $10.31 on Friday, hitting $323.01. The company's stock had a trading volume of 1,547,128 shares, compared to its average volume of 2,454,347. Cadence Design Systems has a one year low of $262.75 and a one year high of $416.69. The firm has a market capitalization of $88.63 billion, a P/E ratio of 64.22, a price-to-earnings-growth ratio of 3.16 and a beta of 1.10. The stock has a fifty day moving average of $320.83 and a two-hundred day moving average of $327.76. The company has a current ratio of 1.36, a quick ratio of 1.18 and a debt-to-equity ratio of 0.29.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings data on Monday, October 26th. The software maker reported $2.11 earnings per share for the quarter, beating the consensus estimate of $2.05 by $0.06. The company had revenue of $1.63 billion for the quarter, compared to analyst estimates of $1.61 billion. Cadence Design Systems had a net margin of 22.51% and a return on equity of 26.56%. The company's revenue was up 22.0% on a year-over-year basis. During the same period in the prior year, the firm earned $1.93 earnings per share. Research analysts predict that Cadence Design Systems will post 6.71 earnings per share for the current year.

Insiders Place Their Bets

In other Cadence Design Systems news, Director Lewis Chew sold 375 shares of the stock in a transaction that occurred on Tuesday, November 10th. The shares were sold at an average price of $331.43, for a total transaction of $124,286.25. Following the transaction, the director owned 8,756 shares in the company, valued at $2,902,001.08. This represents a 4.11% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the firm's stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $350.07, for a total transaction of $437,587.50. Following the transaction, the director directly owned 39,544 shares in the company, valued at $13,843,168.08. This represents a 3.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 11,736 shares of company stock worth $3,772,365. 0.49% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Cadence Design Systems

A number of large investors have recently added to or reduced their stakes in the stock. Van ECK Associates Corp lifted its position in shares of Cadence Design Systems by 21.8% during the 2nd quarter. Van ECK Associates Corp now owns 4,889,765 shares of the software maker's stock valued at $1,835,227,000 after acquiring an additional 874,392 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Cadence Design Systems by 1.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,385,655 shares of the software maker's stock worth $1,270,704,000 after purchasing an additional 48,937 shares during the period. Assenagon Asset Management S.A. lifted its position in Cadence Design Systems by 1,097.5% during the third quarter. Assenagon Asset Management S.A. now owns 2,818,141 shares of the software maker's stock worth $930,522,000 after purchasing an additional 2,582,812 shares during the period. Pictet Asset Management Holding SA grew its stake in Cadence Design Systems by 118.5% during the third quarter. Pictet Asset Management Holding SA now owns 2,752,620 shares of the software maker's stock worth $908,709,000 after buying an additional 1,493,024 shares in the last quarter. Finally, Legal & General Group Plc acquired a new stake in Cadence Design Systems during the second quarter worth about $702,615,000. Institutional investors and hedge funds own 84.85% of the company's stock.

About Cadence Design Systems

Cadence Design Systems, Inc. develops software, hardware and intellectual property used to design and verify semiconductors and electronic systems. Its electronic design automation (EDA) tools help customers plan, build, test and analyze complex chips and circuit boards. The company also offers semiconductor intellectual property and hardware platforms for design prototyping and verification, as well as software for system analysis, including computational fluid dynamics and electromagnetic simulation.

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