Cadence Design Systems (NASDAQ:CDNS) was upgraded by Zacks Investment Research from a "hold" rating to a "buy" rating in a research note issued on Thursday, Zacks.com reports. The brokerage presently has a $146.00 target price on the software maker's stock. Zacks Investment Research's target price indicates a potential upside of 4.72% from the company's current price.
According to Zacks, "Cadence’s Q4 performance benefitted from robust adoption of its Verification and Digital & Signoff solutions’ suite along with expanding customer base. The company is well poised to gain from higher investments on emerging trends like Internet of Things (IoT), and autonomous vehicle sub-systems along with strength in semiconductor end-market. Frequent product launches are expected to help the company sustain top-line growth. The company provided upbeat 2021 revenue guidance on strong pipeline and improving backlog despite COVID-19 related headwinds. Notably, shares have outperformed the industry in the past year. Nonetheless, increasing costs related to research & development are likely to be a drag on margins at least in the near term. Stiff competition in simulation market and significant forex volatility are other concerns."
Other analysts have also issued reports about the stock. JPMorgan Chase & Co. upgraded shares of Cadence Design Systems from a "neutral" rating to an "overweight" rating and boosted their price objective for the company from $122.00 to $145.00 in a report on Wednesday, December 9th. Bank of America downgraded shares of Cadence Design Systems from a "buy" rating to an "underperform" rating in a report on Monday, January 11th. Needham & Company LLC boosted their target price on Cadence Design Systems from $126.00 to $145.00 and gave the company a "buy" rating in a research report on Tuesday. Wells Fargo & Company raised their price target on Cadence Design Systems from $145.00 to $160.00 and gave the stock an "overweight" rating in a research report on Wednesday, February 10th. Finally, Royal Bank of Canada boosted their price objective on Cadence Design Systems from $127.00 to $160.00 and gave the company an "outperform" rating in a report on Tuesday. One analyst has rated the stock with a sell rating, two have given a hold rating and nine have issued a buy rating to the company. The stock presently has an average rating of "Buy" and an average price target of $138.92.
Cadence Design Systems stock opened at $139.42 on Thursday. The stock has a market cap of $38.89 billion, a price-to-earnings ratio of 36.21, a price-to-earnings-growth ratio of 4.64 and a beta of 1.05. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.55 and a quick ratio of 1.51. The firm has a 50 day simple moving average of $136.83 and a 200-day simple moving average of $119.76. Cadence Design Systems has a 1-year low of $51.39 and a 1-year high of $149.08.
Cadence Design Systems (NASDAQ:CDNS) last issued its quarterly earnings data on Sunday, February 21st. The software maker reported $0.83 earnings per share for the quarter, topping the consensus estimate of $0.74 by $0.09. Cadence Design Systems had a return on equity of 48.31% and a net margin of 42.68%. The company had revenue of $759.10 million during the quarter, compared to analyst estimates of $731.31 million. During the same period in the prior year, the business posted $0.54 earnings per share. The firm's revenue for the quarter was up 26.6% compared to the same quarter last year. Equities analysts expect that Cadence Design Systems will post 2.02 earnings per share for the current fiscal year.
In related news, President Anirudh Devgan sold 4,666 shares of Cadence Design Systems stock in a transaction that occurred on Tuesday, February 9th. The shares were sold at an average price of $137.44, for a total value of $641,295.04. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Lip Bu Tan sold 50,000 shares of the business's stock in a transaction that occurred on Friday, January 15th. The stock was sold at an average price of $134.60, for a total transaction of $6,730,000.00. Following the transaction, the chief executive officer now owns 781,709 shares of the company's stock, valued at approximately $105,218,031.40. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 159,222 shares of company stock worth $21,686,229. 2.58% of the stock is owned by company insiders.
Institutional investors and hedge funds have recently made changes to their positions in the stock. Catalyst Capital Advisors LLC acquired a new stake in shares of Cadence Design Systems in the 4th quarter valued at about $27,000. International Assets Investment Management LLC acquired a new stake in shares of Cadence Design Systems in the fourth quarter valued at approximately $28,000. Regent Peak Wealth Advisors LLC purchased a new position in shares of Cadence Design Systems during the fourth quarter worth approximately $31,000. Avion Wealth purchased a new position in Cadence Design Systems during the fourth quarter worth about $43,000. Finally, Montag A & Associates Inc. acquired a new stake in Cadence Design Systems in the fourth quarter valued at about $46,000. 83.86% of the stock is 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 emulation platform; and Protium, a prototyping platform for chip verification.
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