Cadence Design Systems (NASDAQ:CDNS) Raised to “Buy” at Wall Street Zen

Cadence Design Systems (NASDAQ:CDNS) was upgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued on Wednesday, Wall Street Zen reports.

Other analysts have also issued research reports about the company. KeyCorp restated an “overweight” rating on shares of Cadence Design Systems in a report on Tuesday. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $420.00 target price (up from $400.00) on shares of Cadence Design Systems in a research report on Wednesday, October 7th. Mizuho set a $400.00 price target on Cadence Design Systems in a report on Tuesday. The Goldman Sachs Group boosted their price target on Cadence Design Systems from $410.00 to $470.00 and gave the stock a “buy” rating in a research report on Monday, July 13th. Finally, Morgan Stanley restated an “overweight” rating and set a $400.00 price objective (up from $370.00) on shares of Cadence Design Systems in a research note on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $410.05.

Cadence Design Systems Stock Performance

CDNS stock opened at $342.75 on Wednesday. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.36 and a quick ratio of 1.53. The business has a 50-day moving average price of $320.24 and a 200 day moving average price of $327.26. The company has a market capitalization of $94.39 billion, a P/E ratio of 54.88, a PEG ratio of 3.27 and a beta of 1.13. Cadence Design Systems has a 1-year low of $262.75 and a 1-year high of $416.69.

Cadence Design Systems (NASDAQ:CDNS) last released its quarterly earnings data on Monday, October 26th. The software maker reported $2.11 earnings per share for the quarter, topping analysts’ consensus estimates of $2.05 by $0.06. Cadence Design Systems had a net margin of 22.51% and a return on equity of 26.56%. The company had revenue of $1.63 billion during the quarter, compared to analyst estimates of $1.61 billion. During the same period in the prior year, the firm earned $1.93 earnings per share. The firm’s revenue for the quarter was up 22.0% compared to the same quarter last year. As a group, equities research analysts forecast that Cadence Design Systems will post 6.65 EPS for the current fiscal year.

Insider Activity

In related news, VP Paul Cunningham sold 2,000 shares of the stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $324.13, for a total transaction of $648,260.00. Following the completion of the sale, the vice president owned 119,612 shares of the company’s stock, valued at $38,769,837.56. This represents a 1.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita Brennan sold 180 shares of the firm’s stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $285.51, for a total transaction of $51,391.80. Following the completion of the sale, the director owned 7,824 shares of the company’s stock, valued at approximately $2,233,830.24. This trade represents a 2.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 8,960 shares of company stock worth $2,834,139. 0.49% of the stock is currently owned by insiders.

Institutional Trading of Cadence Design Systems

A number of institutional investors have recently made changes to their positions in the business. Avalon Trust Co acquired a new position in Cadence Design Systems during the 2nd quarter valued at about $30,000. Fiduciary Financial Advisors acquired a new stake in Cadence Design Systems in the second quarter worth about $31,000. Arlington Trust Co LLC boosted its holdings in Cadence Design Systems by 154.3% in the second quarter. Arlington Trust Co LLC now owns 89 shares of the software maker’s stock worth $33,000 after acquiring an additional 54 shares in the last quarter. Burkett Financial Services LLC acquired a new stake in Cadence Design Systems in the third quarter worth about $30,000. Finally, Whipplewood Advisors LLC grew its stake in shares of Cadence Design Systems by 933.3% during the first quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker’s stock worth $26,000 after acquiring an additional 84 shares during the last quarter. Institutional investors and hedge funds own 84.85% of the company’s stock.

About Cadence Design Systems

Cadence Design Systems, Inc develops computational software, hardware, and semiconductor intellectual property used to design and verify electronic systems and integrated circuits. Its electronic design automation (EDA) solutions support chip development across areas such as digital and custom IC design, functional verification, emulation, prototyping, and system analysis.

The company also provides semiconductor IP, including processor cores, interconnect technologies, memory interfaces, and other building blocks that help customers develop complex chips.