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

Cadence Design Systems, Inc. (NASDAQ:CDNS) shares 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 traded.

Other equities analysts also recently issued research reports about the stock. Robert W. Baird upped their price objective on shares of Cadence Design Systems from $302.00 to $322.00 and gave the company an “outperform” rating in a report on Thursday, April 18th. Rosenblatt Securities restated a “neutral” rating and issued a $280.00 price objective on shares of Cadence Design Systems in a research report on Monday. Needham & Company LLC reiterated a “buy” rating and set a $320.00 target price on shares of Cadence Design Systems in a research report on Friday, April 19th. Stifel Nicolaus increased their price objective on Cadence Design Systems from $300.00 to $350.00 and gave the company a “buy” rating in a research note on Tuesday, February 13th. Finally, KeyCorp raised their target price on Cadence Design Systems from $335.00 to $340.00 and gave the stock an “overweight” rating in a research note on Monday, April 15th. Three analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. According to MarketBeat, Cadence Design Systems has a consensus rating of “Moderate Buy” and an average price target of $316.50.

Insiders Place Their Bets

In related news, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the firm’s stock in a transaction that occurred on Tuesday, February 6th. The shares were sold at an average price of $299.42, for a total value of $449,130.00. Following the transaction, the director now owns 53,183 shares in the company, valued at $15,924,053.86. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In other news, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the firm’s stock in a transaction that occurred on Tuesday, February 6th. The shares were sold at an average price of $299.42, for a total transaction of $449,130.00. Following the completion of the sale, the director now owns 53,183 shares of the company’s stock, valued at $15,924,053.86. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Aneel Zaman sold 1,207 shares of Cadence Design Systems stock in a transaction on Tuesday, February 27th. The stock was sold at an average price of $303.90, for a total transaction of $366,807.30. Following the completion of the transaction, the vice president now directly owns 61,150 shares of the company’s stock, valued at approximately $18,583,485. The disclosure for this sale can be found here. Insiders have sold 173,044 shares of company stock valued at $52,231,207 in the last ninety days. Insiders own 0.62% of the company’s stock.

Institutional Investors Weigh In On Cadence Design Systems

Several hedge funds and other institutional investors have recently bought and sold shares of CDNS. Norges Bank bought a new stake in Cadence Design Systems in the fourth quarter worth about $1,141,059,000. Nordea Investment Management AB increased its stake in Cadence Design Systems by 124.8% in the 4th quarter. Nordea Investment Management AB now owns 1,895,230 shares of the software maker’s stock worth $515,995,000 after purchasing an additional 1,052,228 shares in the last quarter. Wellington Management Group LLP increased its stake in Cadence Design Systems by 143.3% in the 3rd quarter. Wellington Management Group LLP now owns 1,634,920 shares of the software maker’s stock worth $383,062,000 after purchasing an additional 962,987 shares in the last quarter. Jennison Associates LLC increased its stake in Cadence Design Systems by 8.7% in the 3rd quarter. Jennison Associates LLC now owns 7,047,231 shares of the software maker’s stock worth $1,651,166,000 after purchasing an additional 564,085 shares in the last quarter. Finally, Assenagon Asset Management S.A. increased its stake in Cadence Design Systems by 261.5% in the 4th quarter. Assenagon Asset Management S.A. now owns 620,561 shares of the software maker’s stock worth $169,022,000 after purchasing an additional 448,918 shares in the last quarter. 84.85% of the stock is currently owned by institutional investors.

Cadence Design Systems Price Performance

The stock has a 50 day moving average of $304.84 and a two-hundred day moving average of $280.99. The stock has a market cap of $76.71 billion, a PE ratio of 73.76, a PEG ratio of 3.41 and a beta of 1.04. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.13 and a current ratio of 1.24.

Cadence Design Systems (NASDAQ:CDNS) last issued its quarterly earnings results on Monday, April 22nd. The software maker reported $1.17 earnings per share for the quarter, topping analysts’ consensus estimates of $1.13 by $0.04. Cadence Design Systems had a return on equity of 35.57% and a net margin of 25.46%. The firm had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $1 billion. During the same quarter last year, the business posted $1.02 EPS. Cadence Design Systems’s revenue was down 1.2% on a year-over-year basis. Equities analysts anticipate 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.