Cadence Design Systems (NASDAQ:CDNS) Shares Gap Down Following Insider Selling

Cadence Design Systems Inc (NASDAQ:CDNS)’s share price gapped down before the market opened on Tuesday after an insider sold shares in the company. The stock had previously closed at $65.50, but opened at $67.50. Cadence Design Systems shares last traded at $68.72, with a volume of 73,185 shares.

Specifically, CEO Lip Bu Tan sold 40,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 15th. The stock was sold at an average price of $68.72, for a total transaction of $2,748,800.00. Following the sale, the chief executive officer now owns 899,852 shares of the company’s stock, valued at approximately $61,837,829.44. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Aneel Zaman sold 5,136 shares of the business’s stock in a transaction that occurred on Wednesday, May 29th. The stock was sold at an average price of $63.35, for a total value of $325,365.60. Following the sale, the insider now directly owns 247,262 shares in the company, valued at approximately $15,664,047.70. The disclosure for this sale can be found here. Insiders have sold a total of 179,894 shares of company stock worth $12,657,754 in the last three months. Corporate insiders own 2.34% of the company’s stock.

Several brokerages have recently commented on CDNS. BidaskClub lowered Cadence Design Systems from a “strong-buy” rating to a “buy” rating in a research note on Saturday. KeyCorp began coverage on Cadence Design Systems in a research note on Wednesday, April 10th. They set a “sector weight” rating on the stock. Credit Suisse Group boosted their price target on Cadence Design Systems from $62.00 to $70.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 23rd. Needham & Company LLC boosted their price target on Cadence Design Systems to $76.00 and gave the stock a “buy” rating in a research note on Tuesday, July 23rd. Finally, Royal Bank of Canada boosted their price target on Cadence Design Systems to $73.00 and gave the stock an “outperform” rating in a research note on Tuesday, April 23rd. Five research analysts have rated the stock with a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average target price of $64.25.

The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.52 and a current ratio of 1.60. The stock’s 50 day moving average is $73.21. The company has a market capitalization of $19.37 billion, a PE ratio of 56.22, a PEG ratio of 4.37 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS) last posted its earnings results on Monday, July 22nd. The software maker reported $0.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.36 by $0.02. Cadence Design Systems had a return on equity of 31.86% and a net margin of 18.83%. The firm had revenue of $580.42 million for the quarter, compared to analyst estimates of $579.41 million. During the same quarter in the prior year, the company earned $0.45 EPS. Cadence Design Systems’s revenue was up 12.0% on a year-over-year basis. As a group, research analysts forecast that Cadence Design Systems Inc will post 1.48 EPS for the current fiscal year.

Hedge funds have recently bought and sold shares of the stock. Advisor Partners LLC increased its holdings in shares of Cadence Design Systems by 4.0% during the 2nd quarter. Advisor Partners LLC now owns 3,492 shares of the software maker’s stock worth $247,000 after buying an additional 133 shares during the last quarter. CIBC Asset Management Inc increased its holdings in shares of Cadence Design Systems by 0.4% during the 1st quarter. CIBC Asset Management Inc now owns 38,468 shares of the software maker’s stock worth $2,443,000 after buying an additional 144 shares during the last quarter. Greenleaf Trust increased its holdings in shares of Cadence Design Systems by 1.3% during the 2nd quarter. Greenleaf Trust now owns 11,208 shares of the software maker’s stock worth $794,000 after buying an additional 144 shares during the last quarter. Wetherby Asset Management Inc. increased its holdings in shares of Cadence Design Systems by 2.2% during the 1st quarter. Wetherby Asset Management Inc. now owns 7,212 shares of the software maker’s stock worth $458,000 after buying an additional 155 shares during the last quarter. Finally, Parallel Advisors LLC increased its holdings in shares of Cadence Design Systems by 29.4% during the 1st quarter. Parallel Advisors LLC now owns 718 shares of the software maker’s stock worth $46,000 after buying an additional 163 shares during the last quarter. 87.32% of the stock is currently owned by hedge funds and other institutional investors.

Cadence Design Systems Company Profile (NASDAQ:CDNS)

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 simulation platform; Palladium Z1, an enterprise emulation platform; and Protium S1 field-programmable gate array prototyping platform.

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