Does Cadence Design Systems Inc. (CDNS) Have Insiders Selling Shares?


At the last check on Thursday, Cadence Design Systems Inc.’s (NASDAQ:CDNS) stock was up $17.9, moving up 8.79 percent to $221.57. The average number of shares traded per day over the past five days has been 1,595,743 shares. 2 times new highs have been achieved over the past 5 days, with a $4.05 gain in that time frame. In the last twenty days, the average volume was 1,490,291, while in the previous 50 days, it was 1,745,950.

Since last month, CDNS stock rose 8.82%. Shares of the company fell to $198.92 on 05/15/23, the lowest level in the past month. A 52-week high of $219.09 was reached on 05/25/23 after having rallying from a 52-week low of $138.76. Since the beginning of this year, CDNS’s stock price has risen by 37.93% or $60.25, and marked a new high 26 times. However, the stock has increased by 1.14% since its 52-week high.

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CDNS stock investors should be aware that Cadence Design Systems Inc. (CDNS) stock had its last reported insider trading activity 6 days ago on May 19. BECKLEY THOMAS P, the Sr. Vice President of the company, disposed of 50,000 shares for $217.29 on May 19. It resulted in a $10,864,713 divestment by the insider. BECKLEY THOMAS P sold 76,003 shares at an average price of $209.33 on May 18. The insider now owns 185,761 shares following the transaction. On May 16, Former Executive Chair TAN LIP BU sold 42,500 shares at $202.55 apiece. The transaction was valued at $8,608,573.

Valuation Metrics

Right now, Cadence Design Systems Inc. (CDNS) has a P/E ratio of about 65.22. The stock’s beta is 1.06. Besides these, the trailing price-to-sales (P/S) ratio of 15.09, the price-to-book (PB) ratio of 18.67, and the price-to-cash flow ratio of 53.40 may also be considered.

Financial Health

In the three months ended March 30, Cadence Design Systems Inc.’s quick ratio stood at 1.30, while its current ratio was 1.40, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 0.22, and the total debt-to-equity ratio was 0.23. On the profitability front, the trailing twelve-month gross margin is 89.20% percent. In the year ended March 30, EBITDA margin amounted to 33.86%, whereas operating margins totaled 29.30%. Based on annual data, CDNS earned $3.19 billion in gross profit and brought in $3.56 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 25.10%. Return on equity (ROE) for the past 12 months was 31.10%.

In Cadence Design Systems Inc.’s quarter-end financial report for March 30, it reported total debt of $648.3 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. CDNS’s revenue rose 24.34% to $902.55 million during the quarter, while net income inched up to $1.02 billion. While analysts expected Cadence Design Systems Inc. to report $1.25 quarterly earnings, the actual figure was $1.29 per share, beating the consensus estimate by 3.20%. During the quarter, the company generated $357.17 million in EBITDA. The liabilities of Cadence Design Systems Inc. were 2.23 billion at the end of its most recent quarter ended March 30, and its total debt was $678.3 million. The value of shareholders’ equity is $272.68 million.

Technical Picture

This quick technical analysis looks at Cadence Design Systems Inc.’s (CDNS) price momentum. With a historical volatility rate of 54.36%, the RSI 9-day stood at 66.79% on 24 May.

With respect to its five-day moving average, the current Cadence Design Systems Inc. price is up by +1.87% percent or $4.05. At present, CDNS shares trade +6.27% above its 20-day simple moving average and +37.51% percent above its 100-day simple moving average. However, the stock is currently trading approximately +8.84% above its SMA50 and +19.65% above its SMA200.

Stochastic coefficient K was 52.22% and Stochastic coefficient D was 51.37%, while ATR was 6.13. Given the Stochastic reading of 99.19% for the 14-day period, the RSI (14) reading has been calculated as 63.46%. As of today, the MACD Oscillator reading stands at 0.73, while the 14-day reading stands at 2.91.

Analyst Ratings

Cadence Design Systems Inc. (CDNS) has been rated Overweight by analysts. According to 0 brokerage firms, CDNS is a sell, and 3 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 3 analysts rate Cadence Design Systems Inc. stock as buy, with 10 recommending it as overweight.

With a median target price of $228.00, the current consensus forecast for the stock is $210.00 – $240.00. Based on these forecasts, analysts predict Cadence Design Systems Inc. (CDNS) will achieve an average price target of $226.25.


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