Cadence Design Systems (NASDAQ:CDNS) Shares Gap Down After Analyst Downgrade

Cadence Design Systems, Inc. (NASDAQ:CDNS) gapped down prior to trading on Tuesday after Piper Sandler lowered their price target on the stock from $334.00 to $318.00. The stock had previously closed at $285.02, but opened at $278.00. Piper Sandler currently has a neutral rating on the stock. Cadence Design Systems shares last traded at $279.63, with a volume of 1,562,770 shares trading hands.

Several other brokerages have also recently issued reports on CDNS. KeyCorp increased their price objective on Cadence Design Systems from $335.00 to $340.00 and gave the company an “overweight” rating in a research note on Monday, April 15th. Rosenblatt Securities reiterated a “neutral” rating and set a $280.00 target price on shares of Cadence Design Systems in a research report on Monday. StockNews.com cut Cadence Design Systems from a “buy” rating to a “hold” rating in a research report on Tuesday, April 16th. Wells Fargo & Company raised their price target on Cadence Design Systems from $330.00 to $350.00 and gave the stock an “overweight” rating in a report on Tuesday, April 16th. Finally, Morgan Stanley raised Cadence Design Systems from an “equal weight” rating to an “overweight” rating and lifted their price objective for the company from $260.00 to $350.00 in a report on Wednesday, February 14th. Three investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $316.50.

Insiders Place Their Bets

In other news, VP Thomas P. Beckley sold 65,268 shares of Cadence Design Systems stock in a transaction that occurred on Thursday, February 15th. The stock was sold at an average price of $296.98, for a total transaction of $19,383,290.64. Following the sale, the vice president now owns 156,156 shares of the company’s stock, valued at $46,375,208.88. The transaction was disclosed in a filing with the SEC, which is accessible through this link. In other Cadence Design Systems news, VP Thomas P. Beckley sold 65,268 shares of Cadence Design Systems stock in a transaction that occurred on Thursday, February 15th. The shares were sold at an average price of $296.98, for a total value of $19,383,290.64. Following the transaction, the vice president now owns 156,156 shares in the company, valued at $46,375,208.88. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director Vincentelli Albert Sangiovanni sold 1,500 shares of Cadence Design Systems stock in a transaction that occurred on Monday, April 15th. The stock was sold at an average price of $308.83, for a total transaction of $463,245.00. Following the completion of the transaction, the director now owns 50,183 shares in the company, valued at approximately $15,498,015.89. The disclosure for this sale can be found here. Insiders have sold 177,544 shares of company stock valued at $53,581,207 over the last quarter. Insiders own 0.62% of the company’s stock.

Institutional Investors Weigh In On Cadence Design Systems

Several institutional investors and hedge funds have recently modified their holdings of the business. Valley National Advisers Inc. raised its holdings in Cadence Design Systems by 90.4% in the 4th quarter. Valley National Advisers Inc. now owns 99 shares of the software maker’s stock worth $26,000 after acquiring an additional 47 shares during the period. Fortitude Family Office LLC bought a new stake in Cadence Design Systems in the fourth quarter valued at about $28,000. Annapolis Financial Services LLC bought a new stake in Cadence Design Systems in the first quarter valued at about $32,000. OFI Invest Asset Management bought a new stake in Cadence Design Systems in the third quarter valued at about $26,000. Finally, Union Savings Bank bought a new stake in Cadence Design Systems in the fourth quarter valued at about $33,000. Institutional investors and hedge funds own 84.85% of the company’s stock.

Cadence Design Systems Stock Performance

The firm has a market cap of $75.82 billion, a P/E ratio of 74.61, a PEG ratio of 3.41 and a beta of 1.04. The stock’s 50 day moving average is $305.09 and its two-hundred day moving average is $280.73. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.24 and a quick ratio of 1.13.

Cadence Design Systems (NASDAQ:CDNS) last posted its earnings results on Monday, April 22nd. The software maker reported $1.17 earnings per share for the quarter, beating analysts’ consensus estimates of $1.13 by $0.04. The business had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $1 billion. Cadence Design Systems had a net margin of 25.46% and a return on equity of 35.57%. The firm’s revenue for the quarter was down 1.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.02 earnings per share. As a group, equities analysts predict that Cadence Design Systems, Inc. will post 4.81 EPS for the current year.

About Cadence Design Systems

Cadence Design Systems, Inc provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification.