As of Wednesday close, Cadence Design Systems Inc.’s (NASDAQ:CDNS) stock was down -$2.92, moving down -1.29 percent to $223.24. The average number of shares traded per day over the past five days has been 1,033,520 shares. 1 time new highs have been achieved over the past 5 days, with a -$2.06 fall in that time frame. In the last twenty days, the average volume was 1,687,890, while in the previous 50 days, it was 1,890,318.
Since last month, CDNS stock retreated -8.54%. Shares of the company fell to $222.22 on 08/09/23, the lowest level in the past month. A 52-week high of $248.16 was reached on 07/20/23 after having rallying from a 52-week low of $138.76. Since the beginning of this year, CDNS’s stock price has risen by 38.97% or $62.60, and marked a new high 33 times. However, the stock has declined by -10.04% since its 52-week high.
CDNS stock investors should be aware that Cadence Design Systems Inc. (CDNS) stock had its last reported insider trading activity 9 days ago on Aug 08. WALL JOHN M, the Sr. VP & CFO of the company, disposed of 49,104 shares for $229.09 on Aug 08. It resulted in a $11,249,296 divestment by the insider. SANGIOVANNI VINCENTELLI ALBERT sold 8,800 shares at an average price of $230.23 on Aug 08. The insider now owns 70,683 shares following the transaction. On Aug 08, Director Adams Mark sold 1,473 shares at $229.80 apiece. The transaction was valued at $338,495.
Valuation Metrics
Right now, Cadence Design Systems Inc. (CDNS) has a P/E ratio of about 68.63. The stock’s beta is 1.04. Besides these, the trailing price-to-sales (P/S) ratio of 15.98, the price-to-book (PB) ratio of 20.71, and the price-to-cash flow ratio of 53.57 may also be considered.
Financial Health
In the three months ended June 29, 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 June 29 was 0.22, and the total debt-to-equity ratio was 0.22. On the profitability front, the trailing twelve-month gross margin is 89.40% percent. In the year ended June 29, EBITDA margin amounted to 33.86%, whereas operating margins totaled 28.80%. 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 31.50%.
In Cadence Design Systems Inc.’s quarter-end financial report for June 29, it reported total debt of $648.55 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. CDNS’s revenue rose 7.66% to $1.02 billion during the quarter, while net income inched up to $976.58 million. While analysts expected Cadence Design Systems Inc. to report $1.18 quarterly earnings, the actual figure was $1.22 per share, beating the consensus estimate by 3.40%. During the quarter, the company generated $335.68 million in EBITDA. The liabilities of Cadence Design Systems Inc. were 2.25 billion at the end of its most recent quarter ended June 29, and its total debt was $648.55 million. The value of shareholders’ equity is $271.79 million.
Technical Picture
This quick technical analysis looks at Cadence Design Systems Inc.’s (CDNS) price momentum. With a historical volatility rate of 16.16%, the RSI 9-day stood at 31.49% on 16 August.
With respect to its five-day moving average, the current Cadence Design Systems Inc. price is down by -0.91% percent or -$2.06. At present, CDNS shares trade -7.94% below its 20-day simple moving average and +7.85% percent above its 100-day simple moving average. However, the stock is currently trading approximately -3.91% below its SMA50 and +50.25% above its SMA200.
Stochastic coefficient K was 18.19% and Stochastic coefficient D was 20.67%, while ATR was 5.09. Given the Stochastic reading of 6.32% for the 14-day period, the RSI (14) reading has been calculated as 37.60%. As of today, the MACD Oscillator reading stands at -1.42, while the 14-day reading stands at -3.08.
Analyst Ratings
Stifel upgraded its rating on Cadence Design Systems Inc. (NASDAQ: CDNS) to a Buy in a note to investors on July 20, 2023. The analysts firm previously had a Hold rating on the stock.Cadence Design Systems Inc. (CDNS) has been rated Overweight by analysts. According to 0 brokerage firms, CDNS is a sell, and 2 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 2 analysts rate Cadence Design Systems Inc. stock as buy, with 12 recommending it as overweight.
With a median target price of $264.50, the current consensus forecast for the stock is $240.00 – $300.00. Based on these forecasts, analysts predict Cadence Design Systems Inc. (CDNS) will achieve an average price target of $263.09.
