Zacks Investment Research upgraded shares of Cadence Design Systems, Inc. (NASDAQ:CDNS) from a hold rating to a buy rating in a report published on Wednesday, November 1st. 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.”
A number of other analysts also recently issued reports on CDNS. BidaskClub raised shares of Cadence Design Systems from a buy rating to a strong-buy rating in a report on Tuesday, August 1st. Needham & Company LLC reaffirmed a hold rating on shares of Cadence Design Systems in a report on Sunday, October 29th. Royal Bank Of Canada reaffirmed a buy rating on shares of Cadence Design Systems in a report on Friday, July 7th. Bank of America Corporation lifted their price objective on shares of Cadence Design Systems from $38.00 to $41.00 and gave the stock a buy rating in a report on Tuesday, July 25th. Finally, DA Davidson lifted their price objective on shares of Cadence Design Systems to $43.00 and gave the stock a neutral rating in a report on Monday, October 30th. They noted that the move was a valuation call. One analyst has rated the stock with a sell rating, two have assigned a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The company presently has an average rating of Buy and a consensus target price of $40.60.
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, beating the Thomson Reuters’ consensus estimate of $0.34 by $0.01. Cadence Design Systems had a net margin of 13.45% and a return on equity of 29.00%. The firm had revenue of $485.40 million during the quarter, compared to the consensus estimate of $481.10 million. During the same period last year, the firm earned $0.30 EPS. The business’s quarterly revenue was up 8.8% compared to the same quarter last year. equities research analysts anticipate that Cadence Design Systems will post 1.06 earnings per share for the current year.
In other Cadence Design Systems news, CEO Lip Bu Tan sold 100,000 shares of the business’s stock in a transaction on Monday, October 16th. The shares were sold at an average price of $41.97, for a total value of $4,197,000.00. Following the completion of the sale, the chief executive officer now directly owns 445,833 shares of the company’s stock, valued at $18,711,611.01. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Thomas P. Beckley sold 43,469 shares of the business’s stock in a transaction on Wednesday, November 8th. The stock was sold at an average price of $44.09, for a total transaction of $1,916,548.21. Following the completion of the sale, the insider now directly owns 225,863 shares of the company’s stock, valued at $9,958,299.67. The disclosure for this sale can be found here. Insiders sold 215,260 shares of company stock valued at $9,133,632 over the last three months. 2.55% of the stock is currently owned by insiders.
Institutional investors have recently bought and sold shares of the business. Creative Planning lifted its stake in Cadence Design Systems by 242.2% in the second quarter. Creative Planning now owns 3,282 shares of the software maker’s stock worth $110,000 after purchasing an additional 2,323 shares during the last quarter. Advisor Group Inc. increased its position in shares of Cadence Design Systems by 151.4% in the third quarter. Advisor Group Inc. now owns 4,160 shares of the software maker’s stock valued at $165,000 after acquiring an additional 2,505 shares during the period. Dupont Capital Management Corp purchased a new position in shares of Cadence Design Systems in the third quarter valued at about $170,000. Commonwealth Bank of Australia increased its position in shares of Cadence Design Systems by 36.6% in the second quarter. Commonwealth Bank of Australia now owns 4,852 shares of the software maker’s stock valued at $161,000 after acquiring an additional 1,300 shares during the period. Finally, Parkwood LLC purchased a new position in shares of Cadence Design Systems in the third quarter valued at about $201,000. 83.48% of the stock is owned by institutional investors and hedge funds.
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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