Cadence Design Systems, Inc (NASDAQ: CDNS) has experienced a rise in its stock price by 2.57 compared to its previous closing price of 282.09. However, the company has seen a gain of 14.47% in its stock price over the last five trading days. zacks.com reported 2024-11-01 that Cadence (CDNS) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Is It Worth Investing in Cadence Design Systems, Inc (NASDAQ: CDNS) Right Now?
Cadence Design Systems, Inc (NASDAQ: CDNS) has a price-to-earnings ratio that is above its average at 76.09x. The stock has a 36-month beta value of 1.02. Opinions on the stock are mixed, with 1 analysts rating it as a “buy,” 2 as “overweight,” 5 as “hold,” and 1 as “sell.”
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The public float for CDNS is 271.65M, and at present, short sellers hold a 1.21% of that float. On November 05, 2024, the average trading volume of CDNS was 2.04M shares.
CDNS’s Market Performance
CDNS’s stock has seen a 14.47% increase for the week, with a 7.70% rise in the past month and a 11.37% gain in the past quarter. The volatility ratio for the week is 4.04%, and the volatility levels for the past 30 days are at 2.92% for Cadence Design Systems, Inc. The simple moving average for the past 20 days is 7.44% for CDNS’s stock, with a 0.42% simple moving average for the past 200 days.
Analysts’ Opinion of CDNS
Many brokerage firms have already submitted their reports for CDNS stocks, with Mizuho repeating the rating for CDNS by listing it as a “Outperform.” The predicted price for CDNS in the upcoming period, according to Mizuho is $325 based on the research report published on October 22, 2024 of the current year 2024.
Berenberg, on the other hand, stated in their research note that they expect to see CDNS reach a price target of $320. The rating they have provided for CDNS stocks is “Buy” according to the report published on October 15th, 2024.
Oppenheimer gave a rating of “Underperform” to CDNS, setting the target price at $225 in the report published on September 25th of the current year.
CDNS Trading at 8.13% 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 -12.05% of loss for the given period.
Volatility was left at 2.92%, however, over the last 30 days, the volatility rate increased by 4.04%, as shares surge +10.07% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +5.64% upper at present.
During the last 5 trading sessions, CDNS rose by +14.47%, which changed the moving average for the period of 200-days by -0.96% in comparison to the 20-day moving average, which settled at $269.30. In addition, Cadence Design Systems, Inc saw 6.23% 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 PAUL A CUNNINGHAM, who proposed sale 650 shares at the price of $276.00 back on Nov 01 ’24. After this action, PAUL A CUNNINGHAM now owns shares of Cadence Design Systems, Inc, valued at $179,400 using the latest closing price.
SANGIOVANNI VINCENTELLI ALBERT, the Director of Cadence Design Systems, Inc, sale 1,500 shares at $283.66 during a trade that took place back on Oct 15 ’24, which means that SANGIOVANNI VINCENTELLI ALBERT is holding 42,051 shares at $425,490 based on the most recent closing price.
Stock Fundamentals for CDNS
Current profitability levels for the company are sitting at:
- 0.28 for the present operating margin
- 0.94 for the gross margin
The net margin for Cadence Design Systems, Inc stands at 0.24. The total capital return value is set at 0.16. Equity return is now at value 27.07, with 14.24 for asset returns.
Based on Cadence Design Systems, Inc (CDNS), the company’s capital structure generated 0.38 points at debt to capital in total, while cash flow to debt ratio is standing at 0.39. The debt to equity ratio resting at 0.62. The interest coverage ratio of the stock is -33.2.
Currently, EBITDA for the company is 1.41 billion with net debt to EBITDA at 0.03. When we switch over and look at the enterprise to sales, we see a ratio of 18.24. The receivables turnover for the company is 7.76for trailing twelve months and the total asset turnover is 0.47. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.45.
Conclusion
To sum up, Cadence Design Systems, Inc (CDNS) has seen a better performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
