The stock price of Cadence Design Systems, Inc. (NASDAQ: CDNS) has surged by 1.70 when compared to previous closing price of 280.25, but the company has seen a -5.48% decline in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-22 that Cadence Design Systems (CDNS) came out with quarterly earnings of $1.17 per share, beating the Zacks Consensus Estimate of $1.13 per share. This compares to earnings of $1.29 per share a year ago.
Is It Worth Investing in Cadence Design Systems, Inc. (NASDAQ: CDNS) Right Now?
The price-to-earnings ratio for Cadence Design Systems, Inc. (NASDAQ: CDNS) is above average at 74.66x, Company’s 36-month beta value is 1.06.Analysts have differing opinions on the stock, with 1 analysts rating it as a “buy,” 2 as “overweight,” 5 as “hold,” and 1 as “sell.”
The public float for CDNS is 270.19M, and currently, short sellers hold a 1.02% ratio of that floaft. The average trading volume of CDNS on April 23, 2024 was 1.47M shares.
CDNS’s Market Performance
CDNS’s stock has seen a -5.48% decrease for the week, with a -11.70% drop in the past month and a -3.62% fall in the past quarter. The volatility ratio for the week is 2.95%, and the volatility levels for the past 30 days are at 2.30% for Cadence Design Systems, Inc. The simple moving average for the last 20 days is -6.95% for CDNS stock, with a simple moving average of 7.35% for the last 200 days.
Analysts’ Opinion of CDNS
Many brokerage firms have already submitted their reports for CDNS stocks, with Piper Sandler repeating the rating for CDNS by listing it as a “Neutral.” The predicted price for CDNS in the upcoming period, according to Piper Sandler is $334 based on the research report published on April 04, 2024 of the current year 2024.
Morgan Stanley, on the other hand, stated in their research note that they expect to see CDNS reach a price target of $350. The rating they have provided for CDNS stocks is “Overweight” according to the report published on February 14th, 2024.
Rosenblatt gave a rating of “Neutral” to CDNS, setting the target price at $280 in the report published on February 13th of the current year.
CDNS Trading at -6.82% from the 50-Day Moving Average
After a stumble in the market that brought CDNS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -12.93% of loss for the given period.
Volatility was left at 2.30%, however, over the last 30 days, the volatility rate increased by 2.95%, as shares sank -11.69% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -7.27% lower at present.
During the last 5 trading sessions, CDNS fell by -5.48%, which changed the moving average for the period of 200-days by +23.88% in comparison to the 20-day moving average, which settled at $304.43. In addition, Cadence Design Systems, Inc. saw 4.64% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at CDNS starting from SANGIOVANNI VINCENTELLI ALBERT, who sale 1,500 shares at the price of $308.83 back on Apr 15 ’24. After this action, SANGIOVANNI VINCENTELLI ALBERT now owns 50,183 shares of Cadence Design Systems, Inc., valued at $463,238 using the latest closing price.
Cunningham Paul, the Sr. Vice President of Cadence Design Systems, Inc., sale 1,000 shares at $310.46 during a trade that took place back on Apr 01 ’24, which means that Cunningham Paul is holding 68,144 shares at $310,460 based on the most recent closing price.
Stock Fundamentals for CDNS
Current profitability levels for the company are sitting at:
- 0.29 for the present operating margin
- 0.91 for the gross margin
The net margin for Cadence Design Systems, Inc. stands at 0.26. The total capital return value is set at 0.28. Equity return is now at value 33.86, with 19.27 for asset returns.
Based on Cadence Design Systems, Inc. (CDNS), the company’s capital structure generated 0.15 points at debt to capital in total, while cash flow to debt ratio is standing at 2.06. The debt to equity ratio resting at 0.18. The interest coverage ratio of the stock is 64.72.
Currently, EBITDA for the company is 1.41 billion with net debt to EBITDA at -0.28. When we switch over and look at the enterprise to sales, we see a ratio of 18.97. The receivables turnover for the company is 10.46for trailing twelve months and the total asset turnover is 0.71. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.24.
Conclusion
In a nutshell, Cadence Design Systems, Inc. (CDNS) has experienced a mixed performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
