Is Wall Street High Or Low On Cadence Design Systems Inc. (CDNS)?


Cadence Design Systems Inc. (NASDAQ:CDNS) finished Wednesday with a subtraction of -$0.95 to close at $166.04, a downside of -0.57 percent. An average of 2,205,100 shares of common stock have been traded in the last five days. There was a fall of -$1.19 in the past week, and it reached a new high 18 times over the past 12 months. The last 20 days have seen an average of 1,742,340 shares traded, while the 50-day average volume stands at 1,660,012.

CDNS stock has decreased by -10.20% in the last month. The company shares reached their 1-month lowest point of $160.82 on 09/16/22. With the stock rallying to its 52-week high on 08/16/22, shares of the company touched a low of $132.32 and a high of $194.97 in 52 weeks. It has reached a new high 4 times so far this year and lost -10.90% or -$20.31 in price. In spite of this, the price is down -14.84% from the 52-week high.

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Insider Transactions

7 days have passed since Cadence Design Systems Inc. (CDNS) last reported insider trading activity. TAN LIP BU, who is Executive Chair, most recently acquired $50,000 shares at $162.87 per share on Sep 15. In this transaction, the insider spent $8,143,522. Sr. Vice President, TENG CHIN-CHI, disposed of 11,000 shares at a price of $174.59 on Sep 12. The insider now owns more than $1,920,522 worth of shares. Prior to that, Sr. Vice President Cunningham Paul went on to Sale 250 shares at $168.39 each on Sep 06. An amount of $42,098 was transacted.

Valuation Metrics

Cadence Design Systems Inc. (CDNS) has a trailing price-to-earnings (P/E) ratio of 59.36. The stock’s beta is 1.18. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 13.75, the price-to-book (PB) ratio at 17.17, and the price-to-cash flow ratio at 41.15.

Financial Health

The quick ratio of Cadence Design Systems Inc. for the three months ended June 29 was 1.50, and the current ratio was 1.60, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.13 and a total debt to equity ratio of 0.00 for the quarter ending June 29. Its gross profit as reported stood at $2.68 billion compared to revenue of $2.99 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Cadence Design Systems Inc.’s return on assets was 17.90%.

Earnings Surprise

For the three-month period that ended June 29, Cadence Design Systems Inc. had $348.0 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $186.92 million in the quarter, while revenues of $235.34 million were grew 16.6%. The analyst consensus anticipated Cadence Design Systems Inc.’s latest quarter earnings to come in at $0.96 per share, but it turned out to be $1.08, a 12.50% surprise. For the quarter, EBITDA amounted to $316.02 million. Shareholders own equity worth $273.87 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Cadence Design Systems Inc. (CDNS) price momentum. RSI 9-day as of the close on 21 September was 37.12%, suggesting the stock is Neutral, with historical volatility in this time frame at 30.84%.

As of today, CDNS’s price is $165.51 -0.71% or -$1.19 from its 5-day moving average. CDNS is currently trading -9.39% lower than its 20-day SMA and +4.42% higher than its 100-day SMA. However, the stock’s current price level is +7.66% above the SMA50 and -6.65% below the SMA200.

The stochastic %K and %D were 37.92% and 31.42%, respectively, and the average true range (ATR) was 4.53. With the 14-day stochastic at 34.43% and the average true range at 4.50, the RSI (14) stands at 39.20%. The stock has reached -1.19 on the 9-day MACD Oscillator while the 14-day reading was at -1.84.

Analyst Ratings

Stifel launched coverage on Cadence Design Systems Inc. (NASDAQ: CDNS) in its analyst report released on September 08, 2022. The firm assigned the stock a Hold rating. The consensus rating for Cadence Design Systems Inc. (CDNS) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell CDNS, while 6 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 8 others rate it as a “buy”.

What is CDNS’s price target for the next 12 months?

Analysts predict a range of price targets between $180.00 and $215.00, with a median target of $200.00. Taking a look at these predictions, the average price target given by analysts for Cadence Design Systems Inc. (CDNS) stock is $197.62.


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