Zacks Investment Research lowered shares of Cadence Design Systems (NASDAQ:CDNS) from a hold rating to a strong sell rating in a report published on Monday, February 5th.
According to Zacks, “Cadence reported in-line earnings in fourth-quarter. The company has a highly leveraged balance sheet. High indebtedness adds to the risk of investing in the company. Going forward, Cadence faces stiff competition from other EDA companies like ANSYS and Siemens AG. Intensifying competition negatively impacts pricing power, which keeps margins under pressure. Also, currency volatility and stretched valuation adds to its woes. Notably, the shares of the company have underperformed the industry over the past six months. Nonetheless, Cadence is benefiting from ongoing adoption of the company’s digital and signoff, custom-analog and IP solutions as well as expanding customer base.”
A number of other analysts also recently weighed in on CDNS. Royal Bank of Canada increased their price target on shares of Cadence Design Systems from $39.00 to $45.00 and gave the company an outperform rating in a research report on Wednesday, October 11th. Needham & Company LLC reiterated a hold rating on shares of Cadence Design Systems in a research report on Sunday, October 29th. DA Davidson increased their price target on shares of Cadence Design Systems to $43.00 and gave the company a neutral rating in a research report on Monday, October 30th. They noted that the move was a valuation call. KeyCorp restated a hold rating on shares of Cadence Design Systems in a report on Sunday, November 26th. Finally, BidaskClub downgraded shares of Cadence Design Systems from a buy rating to a hold rating in a report on Wednesday, December 27th. Two analysts have rated the stock with a sell rating, four have given a hold rating and two have assigned a buy rating to the stock. The company presently has a consensus rating of Hold and a consensus price target of $44.20.
Shares of Cadence Design Systems (CDNS) opened at $37.90 on Monday. The firm has a market cap of $10,899.09, a P/E ratio of 51.22, a P/E/G ratio of 3.77 and a beta of 0.97. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.53 and a quick ratio of 1.47. Cadence Design Systems has a 52-week low of $29.56 and a 52-week high of $46.00.
Cadence Design Systems (NASDAQ:CDNS) last announced its quarterly earnings results on Wednesday, January 31st. The software maker reported $0.39 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.39. The business had revenue of $501.70 million for the quarter, compared to the consensus estimate of $496.20 million. Cadence Design Systems had a net margin of 10.50% and a return on equity of 31.28%. Cadence Design Systems’s revenue for the quarter was up 7.0% on a year-over-year basis. During the same period last year, the company posted $0.34 EPS. research analysts predict that Cadence Design Systems will post 0.85 earnings per share for the current fiscal year.
In other Cadence Design Systems news, CFO John M. Wall sold 750 shares of the firm’s stock in a transaction that occurred on Monday, February 12th. The shares were sold at an average price of $37.93, for a total transaction of $28,447.50. Following the sale, the chief financial officer now directly owns 129,673 shares in the company, valued at approximately $4,918,496.89. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP James J. Cowie sold 35,000 shares of the firm’s stock in a transaction that occurred on Tuesday, December 5th. The stock was sold at an average price of $42.75, for a total transaction of $1,496,250.00. Following the transaction, the vice president now directly owns 117,082 shares of the company’s stock, valued at $5,005,255.50. The disclosure for this sale can be found here. Insiders have sold a total of 256,776 shares of company stock worth $11,313,793 over the last 90 days. Corporate insiders own 2.55% of the company’s stock.
Several institutional investors and hedge funds have recently modified their holdings of the company. Caxton Associates LP grew its stake in shares of Cadence Design Systems by 0.6% during the 2nd quarter. Caxton Associates LP now owns 15,900 shares of the software maker’s stock worth $532,000 after acquiring an additional 100 shares in the last quarter. PNC Financial Services Group Inc. grew its stake in shares of Cadence Design Systems by 6.4% during the 2nd quarter. PNC Financial Services Group Inc. now owns 10,130 shares of the software maker’s stock worth $338,000 after acquiring an additional 612 shares in the last quarter. Pitcairn Co. grew its stake in shares of Cadence Design Systems by 3.1% during the 4th quarter. Pitcairn Co. now owns 47,627 shares of the software maker’s stock worth $1,991,000 after acquiring an additional 1,445 shares in the last quarter. First Republic Investment Management Inc. grew its stake in shares of Cadence Design Systems by 7.1% during the 3rd quarter. First Republic Investment Management Inc. now owns 22,584 shares of the software maker’s stock worth $892,000 after acquiring an additional 1,491 shares in the last quarter. Finally, Ameritas Investment Partners Inc. grew its stake in shares of Cadence Design Systems by 1.8% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 83,671 shares of the software maker’s stock worth $2,802,000 after acquiring an additional 1,494 shares in the last quarter. 84.91% of the stock is owned by institutional investors.
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Cadence Design Systems Company Profile
Cadence Design Systems, Inc provides solutions that enable its customers to design electronic products. The Company’s product categories include Functional Verification, Digital integrated circuits (IC) Design and Signoff, Custom IC Design and Verification, System Interconnect and Analysis, and intellectual property (IP).
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