There’s Something Awry at Cadence Design Systems Inc. (NASDAQ:CDNS) Since Share Price Gets Ahead of Fundamentals

The stock of Cadence Design Systems Inc. (NASDAQ:CDNS) last traded at $159.23, down -0.26% from the previous session.

Data from the available sources indicates that Cadence Design Systems Inc. (NASDAQ:CDNS) is covered by 16 analysts. The consensus rating among analysts is ‘Overweight’. As we calculate the median target price by taking the range between a high of $215.00 and a low of $163.40, we find $200.00. Given the previous closing price of $159.64, this indicates a potential upside of 25.28 percent. CDNS stock price is now -0.81% away from the 50-day moving average and -1.12% away from the 200-day moving average. The market capitalization of the company currently stands at $44.03B.

In total, 5 analysts have assigned it a hold rating, and 10 have given it a buy rating. Brokers who have rated the stock have averaged $191.67 as their price target over the next twelve months.

On September 29, 2022, Deutsche Bank recently initiated its ‘Buy’ rating on the stock quoting a target price of $200, while ‘Stifel’ rates the stock as ‘Hold’.

In other news, TAN LIP BU, Executive Chair sold 40,000 shares of the company’s stock on Dec 21. The stock was sold for $6,581,925 at an average price of $164.55. Upon completion of the transaction, the Executive Chair now directly owns 956,936 shares in the company, valued at $152.37 million. An SEC document containing details of the transaction can be found on the SEC’s website. On Dec 05, Sr. Vice President Cunningham Paul sold 250 shares of the business’s stock. A total of $42,612 was realized by selling the stock at an average price of $170.45. This leaves the insider owning 93,439 shares of the company worth $14.88 million. Insiders disposed of 1,261,972 shares of company stock worth roughly $200.94 million over the past 1 year. A total of 0.60% of the company’s stock is owned by insiders.

There have been several recent changes in the stakes of large investors in CDNS stock. A new stake in Cadence Design Systems Inc. shares was purchased by VIKING GLOBAL INVESTORS LP during the first quarter worth $96,420,000. AMALGAMATED FINANCIAL CORP. invested $12,264,000 in shares of CDNS during the first quarter. In the first quarter, COVEA FINANCE acquired a new stake in Cadence Design Systems Inc. valued at approximately $12,234,000. TREDJE AP-FONDEN acquired a new stake in CDNS for approximately $8,665,000. MARIETTA INVESTMENT PARTNERS LLC purchased a new stake in CDNS valued at around $6,160,000 in the second quarter. In total, there are 1,248 active investors with 90.20% ownership of the company’s stock.

With an opening price of $161.00 on Wednesday morning, Cadence Design Systems Inc. (NASDAQ: CDNS) set off the trading day. During the past 12 months, Cadence Design Systems Inc. has had a low of $132.32 and a high of $194.97. As of last week, the company has a debt-to-equity ratio of 0.29, a current ratio of 1.30, and a quick ratio of 1.20. The fifty day moving average price for CDNS is $160.54 and a two-hundred day moving average price translates $161.04 for the stock.

The latest earnings results from Cadence Design Systems Inc. (NASDAQ: CDNS) was released for Sep, 2022. According to the Software – Application Company, earnings per share came in at $1.06, beating analysts’ expectations of $0.97 by 0.09. This compares to $0.63 EPS in the same period last year. The net profit margin was 22.90% and return on equity was 29.00% for CDNS. The company reported revenue of $902.55 million for the quarter, compared to $750.89 million a year earlier. Comparatively to last year’s same quarter, the company’s quarterly revenue rose 20.2 percent. For the current quarter, analysts expect CDNS to generate $882.72M in revenue.

Cadence Design Systems Inc.(CDNS) Company Profile

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. The company also provides digital IC design and sign off products, including Genus logic synthesis and Joules RTL power solutions, as well as Modus software solution to reduce systems-on-chip design-for-test time; physical implementation tools, such as place and route, optimization, and multiple patterning preparation; and signoff products to signoff the design as ready for silicon manufacturing. In addition, it offers custom IC design and simulation products to create schematic and physical representations of circuits down to the transistor level for analog, mixed-signal, custom digital, memory, and radio frequency designs; and system design and analysis products to develop printed circuit boards and IC packages, as well as to analyze electromagnetic, electro-thermal, and other multi-physics effects. Further, the company provides intellectual property (IP) products comprising pre-verified and customizable functional blocks to integrate into customer’s ICs; and verification IP and memory models to emulate and model the expected behavior and interaction of standard industry system interface protocols. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. The company serves 5G communications, aerospace and defense, automotive, industrial and healthcare, mobile, consumer, and hyperscale computing markets. Cadence Design Systems, Inc. was incorporated in 1987 and is headquartered in San Jose, California.