Cadence Design Systems (NASDAQ:CDNS) Stock Breaks Below Two Hundred Day Moving Average – What’s Next?

Cadence Design Systems, Inc. (NASDAQ:CDNS)’s share price passed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $327.36 and traded as low as $309.98. Cadence Design Systems shares last traded at $323.75, with a volume of 2,335,475 shares traded.

Analysts Set New Price Targets

A number of brokerages have recently commented on CDNS. Morgan Stanley reaffirmed an “overweight” rating and issued a $400.00 target price (up from $370.00) on shares of Cadence Design Systems in a report on Wednesday, July 29th. Citigroup increased their price objective on Cadence Design Systems from $400.00 to $420.00 and gave the stock a “buy” rating in a research report on Tuesday, July 28th. FBN Securities began coverage on Cadence Design Systems in a research note on Friday, September 11th. They issued an “outperform” rating and a $375.00 target price on the stock. Wall Street Zen raised Cadence Design Systems from a “hold” rating to a “buy” rating in a report on Wednesday, October 28th. Finally, Piper Sandler upped their price target on Cadence Design Systems from $325.00 to $349.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, Cadence Design Systems presently has a consensus rating of “Moderate Buy” and an average target price of $410.05.

Cadence Design Systems Stock Down 1.7%

The stock has a market capitalization of $88.83 billion, a PE ratio of 64.36, a PEG ratio of 3.12 and a beta of 1.10. The firm’s fifty day moving average is $320.90 and its 200-day moving average is $327.36. The company has a quick ratio of 1.18, a current ratio of 1.36 and a debt-to-equity ratio of 0.29.

Cadence Design Systems (NASDAQ:CDNS) last announced its quarterly earnings data on Monday, October 26th. The software maker reported $2.11 EPS for the quarter, beating analysts’ consensus estimates of $2.05 by $0.06. Cadence Design Systems had a net margin of 22.51% and a return on equity of 26.56%. The firm had revenue of $1.63 billion during the quarter, compared to the consensus estimate of $1.61 billion. During the same quarter last year, the firm earned $1.93 earnings per share. The firm’s revenue was up 22.0% compared to the same quarter last year. On average, equities research analysts predict that Cadence Design Systems, Inc. will post 6.71 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Ita M. Brennan sold 180 shares of the company’s stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $285.51, for a total transaction of $51,391.80. Following the transaction, the director owned 7,824 shares of the company’s stock, valued at $2,233,830.24. This represents a 2.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $350.07, for a total value of $437,587.50. Following the completion of the transaction, the director owned 39,544 shares of the company’s stock, valued at $13,843,168.08. The trade was a 3.06% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 8,960 shares of company stock valued at $2,834,139 over the last 90 days. 0.49% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cadence Design Systems

Several institutional investors have recently made changes to their positions in the stock. Van ECK Associates Corp grew its position in Cadence Design Systems by 21.8% during the second quarter. Van ECK Associates Corp now owns 4,889,765 shares of the software maker’s stock worth $1,835,227,000 after buying an additional 874,392 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Cadence Design Systems by 1.5% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,385,655 shares of the software maker’s stock valued at $1,270,704,000 after acquiring an additional 48,937 shares during the period. Assenagon Asset Management S.A. lifted its position in shares of Cadence Design Systems by 1,097.5% during the 3rd quarter. Assenagon Asset Management S.A. now owns 2,818,141 shares of the software maker’s stock valued at $930,522,000 after acquiring an additional 2,582,812 shares during the period. Pictet Asset Management Holding SA lifted its position in shares of Cadence Design Systems by 118.5% during the 3rd quarter. Pictet Asset Management Holding SA now owns 2,752,620 shares of the software maker’s stock valued at $908,709,000 after acquiring an additional 1,493,024 shares during the period. Finally, Legal & General Group Plc purchased a new stake in shares of Cadence Design Systems during the 2nd quarter worth approximately $702,615,000. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc develops computational software, hardware, and semiconductor intellectual property used to design and verify electronic systems and integrated circuits. Its electronic design automation (EDA) solutions support chip development across areas such as digital and custom IC design, functional verification, emulation, prototyping, and system analysis.

The company also provides semiconductor IP, including processor cores, interconnect technologies, memory interfaces, and other building blocks that help customers develop complex chips.