Cadence Design Systems Inc. (NASDAQ:CDNS) finished Wednesday with an addition of $8.07 to close at $233.58, an upside of 3.58 percent. An average of 1,306,520 shares of common stock have been traded in the last five days. There was a gain of $10.34 in the past week, and it reached a new high 26 times over the past 12 months. The last 20 days have seen an average of 1,309,775 shares traded, while the 50-day average volume stands at 1,860,440.
CDNS stock has decreased by -1.98% in the last month. The company shares reached their 1-month lowest point of $217.77 on 08/18/23. With the stock rallying to its 52-week high on 07/20/23, shares of the company touched a low of $138.76 and a high of $248.16 in 52 weeks. It has reached a new high 33 times so far this year and achieved 45.41% or $72.94 in price. In spite of this, the price is down -5.88% from the 52-week high.
Insider Transactions
CDNS stock investors should be aware that Cadence Design Systems Inc. (CDNS) stock had its last reported insider trading activity 16 days ago on Aug 08. In this transaction, the insider spent $11,249,296. Director, SANGIOVANNI VINCENTELLI ALBERT, disposed of 8,800 shares at a price of $230.23 on Aug 08. The insider now owns more than $2,026,020 worth of shares. Prior to that, Director Adams Mark went on to Sale 1,473 shares at $229.80 each on Aug 08. An amount of $338,495 was transacted.
Valuation Metrics
Cadence Design Systems Inc. (CDNS) has a trailing price-to-earnings (P/E) ratio of 71.80. The stock’s beta is 1.04. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 16.74, the price-to-book (PB) ratio at 21.67, and the price-to-cash flow ratio at 56.11.
Financial Health
The quick ratio of Cadence Design Systems Inc. for the three months ended June 29 was 1.30, and the current ratio was 1.40, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.22 and a total debt to equity ratio of 0.22 for the quarter ending June 29. Cadence Design Systems Inc.’s EBITDA margin for the year ending June 29 is 33.86%, while its operating margin for the same period stands at 28.80%. Its gross profit as reported stood at $3.19 billion compared to revenue of $3.56 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 17.40%.
Earnings Surprise
For the three-month period that ended June 29, Cadence Design Systems Inc. had $648.55 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 $221.12 million in the quarter, while revenues of $241.8 million were grew 15.47%. The analyst consensus anticipated Cadence Design Systems Inc.’s latest quarter earnings to come in at $1.18 per share, but it turned out to be $1.22, a 3.40% surprise. For the quarter, EBITDA amounted to $335.68 million. Shareholders own equity worth $271.79 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 23 August was 63.49%, suggesting the stock is Neutral, with historical volatility in this time frame at 23.33%.
As of today, CDNS’s price is $224.99 +4.63% or $10.34 from its 5-day moving average. CDNS is currently trading -0.16% lower than its 20-day SMA and +12.84% higher than its 100-day SMA. However, the stock’s current price level is +0.15% above the SMA50 and +63.50% above the SMA200.
The stochastic %K and %D were 63.20% and 40.57%, respectively, and the average true range (ATR) was 5.29. With the 14-day stochastic at 95.62% and the average true range at 5.39, the RSI (14) stands at 56.97%. The stock has reached 2.66 on the 9-day MACD Oscillator while the 14-day reading was at 1.63.
Analyst Ratings
Stifel upgraded Cadence Design Systems Inc. (NASDAQ: CDNS) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Hold. 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 2 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 12 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 $240.00 and $300.00, with a median target of $264.50. Taking a look at these predictions, the average price target given by analysts for Cadence Design Systems Inc. (CDNS) stock is $263.09.
