Cadence Design Systems, Inc. (CDNS) Upgraded at Zacks Investment Research
Zacks Investment Research upgraded shares of Cadence Design Systems, Inc. (NASDAQ:CDNS) from a hold rating to a buy rating in a research note published on Wednesday. Zacks Investment Research currently has $48.00 target price on the software maker’s stock.
According to Zacks, “Cadence reported impressive third-quarter 2017 results. Top-line benefited from ongoing adoption of the company’s digital and signoff, custom-analog and IP solutions and an expanding customer base. The company has outperformed the industry on a year-to-date basis. We also believe that increasing investments on emerging trends like Internet-of-things (IoT), augmented and virtual reality (AR/VR) and autonomous vehicle sub-systems presents significant growth opportunity for the company in the long haul. However, intensifying competition, currency volatility, leveraged balance sheet and stretched valuation are the headwinds.”
Several other research firms have also recently issued reports on CDNS. DA Davidson boosted their target price on Cadence Design Systems to $43.00 and gave the company a neutral rating in a research note on Monday, October 30th. They noted that the move was a valuation call. Needham & Company LLC reissued a hold rating on shares of Cadence Design Systems in a research note on Sunday, October 29th. Royal Bank Of Canada reissued a buy rating and set a $46.00 target price on shares of Cadence Design Systems in a research note on Friday, October 27th. Credit Suisse Group reissued an outperform rating on shares of Cadence Design Systems in a research note on Thursday, August 31st. Finally, BidaskClub raised Cadence Design Systems from a buy rating to a strong-buy rating in a research note on Wednesday, August 16th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, four have given a buy rating and one has given a strong buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average price target of $40.60.
Shares of Cadence Design Systems (NASDAQ:CDNS) opened at $43.90 on Wednesday. The company has a current ratio of 1.79, a quick ratio of 1.72 and a debt-to-equity ratio of 0.64. The stock has a market cap of $12.36 billion, a P/E ratio of 47.09, a PEG ratio of 3.45 and a beta of 0.94.
Cadence Design Systems (NASDAQ:CDNS) last announced its quarterly earnings results on Thursday, October 26th. The software maker reported $0.35 EPS for the quarter, topping the Zacks’ consensus estimate of $0.34 by $0.01. The business had revenue of $485.40 million for the quarter, compared to analysts’ expectations of $481.10 million. Cadence Design Systems had a return on equity of 29.00% and a net margin of 13.45%. The business’s quarterly revenue was up 8.8% on a year-over-year basis. During the same period in the previous year, the firm earned $0.30 EPS. research analysts forecast that Cadence Design Systems will post 1.06 earnings per share for the current fiscal year.
In related news, CEO Lip Bu Tan sold 100,000 shares of the company’s stock in a transaction on Tuesday, August 15th. The stock was sold at an average price of $37.18, for a total transaction of $3,718,000.00. Following the completion of the sale, the chief executive officer now owns 583,332 shares in the company, valued at $21,688,283.76. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Roger S. Siboni sold 18,000 shares of the company’s stock in a transaction on Wednesday, November 1st. The shares were sold at an average price of $43.14, for a total value of $776,520.00. Following the sale, the director now owns 52,194 shares of the company’s stock, valued at approximately $2,251,649.16. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 278,786 shares of company stock worth $10,962,920. Corporate insiders own 2.55% of the company’s stock.
Institutional investors have recently bought and sold shares of the stock. Pettee Investors Inc. purchased a new stake in Cadence Design Systems in the third quarter worth about $804,000. Parkwood LLC purchased a new stake in Cadence Design Systems in the third quarter worth about $201,000. American Century Companies Inc. increased its position in Cadence Design Systems by 9.3% in the third quarter. American Century Companies Inc. now owns 224,576 shares of the software maker’s stock worth $8,864,000 after buying an additional 19,137 shares in the last quarter. State of Wisconsin Investment Board increased its position in Cadence Design Systems by 4.3% in the third quarter. State of Wisconsin Investment Board now owns 318,798 shares of the software maker’s stock worth $12,583,000 after buying an additional 13,027 shares in the last quarter. Finally, Chicago Equity Partners LLC increased its position in Cadence Design Systems by 64.1% in the third quarter. Chicago Equity Partners LLC now owns 45,770 shares of the software maker’s stock worth $1,807,000 after buying an additional 17,870 shares in the last quarter. Institutional investors own 85.46% of the company’s stock.
Cadence Design Systems Company Profile
Cadence Design Systems, Inc provides solutions that enable its customers to design electronic products. The Company’s product categories include Functional Verification, Digital integrated circuits (IC) Design and Signoff, Custom IC Design and Verification, System Interconnect and Analysis, and intellectual property (IP).
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