Cadence Design Systems (NASDAQ:CDNS) Shares Gap Down on Analyst Downgrade

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS) gapped down prior to trading on Tuesday after Piper Sandler lowered their price target on the stock from $334.00 to $318.00. The stock had previously closed at $285.02, but opened at $278.00. Piper Sandler currently has a neutral rating on the stock. Cadence Design Systems shares last traded at $279.63, with a volume of 1,562,770 shares.

CDNS has been the topic of several other reports. Robert W. Baird upped their price target on Cadence Design Systems from $302.00 to $322.00 and gave the stock an “outperform” rating in a research note on Thursday, April 18th. Stifel Nicolaus boosted their target price on Cadence Design Systems from $300.00 to $350.00 and gave the stock a “buy” rating in a report on Tuesday, February 13th. Morgan Stanley raised Cadence Design Systems from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $260.00 to $350.00 in a report on Wednesday, February 14th. KeyCorp boosted their target price on Cadence Design Systems from $335.00 to $340.00 and gave the stock an “overweight” rating in a report on Monday, April 15th. Finally, Wells Fargo & Company boosted their target price on Cadence Design Systems from $330.00 to $350.00 and gave the stock an “overweight” rating in a report on Tuesday, April 16th. Two analysts have rated the stock with a hold rating and eight have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $316.50.

Insider Activity

In other Cadence Design Systems news, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the stock in a transaction dated Tuesday, February 6th. The stock was sold at an average price of $299.42, for a total value of $449,130.00. Following the transaction, the director now owns 53,183 shares of the company’s stock, valued at $15,924,053.86. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In other Cadence Design Systems news, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the stock in a transaction dated Tuesday, February 6th. The stock was sold at an average price of $299.42, for a total value of $449,130.00. Following the transaction, the director now owns 53,183 shares of the company’s stock, valued at $15,924,053.86. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, VP Thomas P. Beckley sold 65,268 shares of the stock in a transaction dated Thursday, February 15th. The shares were sold at an average price of $296.98, for a total value of $19,383,290.64. Following the completion of the transaction, the vice president now directly owns 156,156 shares in the company, valued at approximately $46,375,208.88. The disclosure for this sale can be found here. Insiders have sold a total of 173,044 shares of company stock valued at $52,231,207 over the last ninety days. 0.62% of the stock is currently owned by corporate insiders.

Institutional Trading of Cadence Design Systems

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its position in Cadence Design Systems by 1.6% in the fourth quarter. Vanguard Group Inc. now owns 24,503,455 shares of the software maker’s stock worth $6,674,006,000 after buying an additional 384,637 shares in the last quarter. Jennison Associates LLC increased its position in Cadence Design Systems by 8.7% in the third quarter. Jennison Associates LLC now owns 7,047,231 shares of the software maker’s stock worth $1,651,166,000 after buying an additional 564,085 shares in the last quarter. Norges Bank purchased a new stake in Cadence Design Systems in the fourth quarter worth about $1,141,059,000. Northern Trust Corp grew its position in shares of Cadence Design Systems by 5.6% during the third quarter. Northern Trust Corp now owns 2,995,849 shares of the software maker’s stock worth $701,927,000 after purchasing an additional 158,031 shares in the last quarter. Finally, Invesco Ltd. grew its position in shares of Cadence Design Systems by 4.9% during the third quarter. Invesco Ltd. now owns 2,012,292 shares of the software maker’s stock worth $471,480,000 after purchasing an additional 93,984 shares in the last quarter. Hedge funds and other institutional investors own 84.85% of the company’s stock.

Cadence Design Systems Price Performance

The company has a debt-to-equity ratio of 0.09, a current ratio of 1.24 and a quick ratio of 1.13. The firm has a 50-day moving average of $304.38 and a 200-day moving average of $280.97. The stock has a market cap of $75.59 billion, a PE ratio of 72.31, a PEG ratio of 3.47 and a beta of 1.04.

Cadence Design Systems (NASDAQ:CDNS) last released its earnings results on Monday, April 22nd. The software maker reported $1.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.13 by $0.04. Cadence Design Systems had a return on equity of 33.53% and a net margin of 25.68%. The firm had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $1 billion. During the same quarter last year, the business posted $1.02 earnings per share. The firm’s revenue was down 1.2% on a year-over-year basis. Research analysts predict that Cadence Design Systems, Inc. will post 4.81 EPS for the current year.

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.