Cadence Design Systems (CDNS) Upgraded at Zacks Investment Research

Cadence Design Systems (NASDAQ:CDNS) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Thursday. The firm presently has a $54.00 price objective on the software maker’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 18.63% from the stock’s current price.

According to Zacks, “Cadence’s third-quarter results benefit from robust adoption of the company’s digital and signoff, custom and analog, and IP solutions. It was aided by an expanding customer base. Significant demand from aerospace and defense sectors remains a key catalyst. Further, Cadence collaborated with Microsoft’s Azure, Amazon Web Services (“AWS”) and Google Cloud platform to enable smooth design development of electronic systems and semiconductors. Management is elated with the sturdy pipeline of the company’s innovative cloud-ready solutions. Additionally, the company’s partnership with Taiwan Semi bodes well. Moreover, increasing investments on emerging trends like IoT, augmented and virtual reality (AR/VR) and autonomous vehicle sub-systems present significant growth opportunity for the company in the long haul. Notably, shares of Cadence have outperformed the industry in the past six months.”

A number of other equities analysts also recently commented on CDNS. JPMorgan Chase & Co. lifted their target price on shares of Cadence Design Systems from $42.00 to $49.00 and gave the stock a “market perform” rating in a research note on Tuesday, July 24th. Needham & Company LLC lifted their target price on shares of Cadence Design Systems from $47.00 to $50.00 and gave the stock a “buy” rating in a research note on Tuesday, July 24th. DA Davidson lifted their target price on shares of Cadence Design Systems to $52.00 and gave the stock a “buy” rating in a research note on Tuesday, July 24th. Griffin Securities lifted their target price on shares of Cadence Design Systems from $50.00 to $52.00 and gave the stock a “buy” rating in a research note on Tuesday, July 24th. Finally, Credit Suisse Group lifted their target price on shares of Cadence Design Systems from $44.00 to $46.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 24th. Four analysts have rated the stock with a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company’s stock. Cadence Design Systems has an average rating of “Buy” and a consensus target price of $50.25.



CDNS opened at $45.52 on Thursday. The stock has a market cap of $13.13 billion, a P/E ratio of 42.94, a price-to-earnings-growth ratio of 3.33 and a beta of 1.13. Cadence Design Systems has a twelve month low of $35.49 and a twelve month high of $47.40. The company has a current ratio of 1.64, a quick ratio of 1.26 and a debt-to-equity ratio of 0.27.

Cadence Design Systems (NASDAQ:CDNS) last posted its quarterly earnings results on Monday, October 22nd. The software maker reported $0.49 earnings per share for the quarter, topping analysts’ consensus estimates of $0.41 by $0.08. The firm had revenue of $532.47 million for the quarter, compared to analyst estimates of $516.50 million. Cadence Design Systems had a net margin of 11.25% and a return on equity of 28.44%. Cadence Design Systems’s quarterly revenue was up 9.7% on a year-over-year basis. During the same period in the previous year, the business posted $0.35 earnings per share. Equities analysts predict that Cadence Design Systems will post 1.16 EPS for the current year.

In other Cadence Design Systems news, CEO Lip Bu Tan sold 100,000 shares of Cadence Design Systems stock in a transaction dated Wednesday, August 15th. The shares were sold at an average price of $45.33, for a total transaction of $4,533,000.00. Following the transaction, the chief executive officer now directly owns 552,813 shares of the company’s stock, valued at $25,059,013.29. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, President Anirudh Devgan sold 20,476 shares of Cadence Design Systems stock in a transaction dated Friday, September 21st. The stock was sold at an average price of $45.73, for a total transaction of $936,367.48. Following the transaction, the president now directly owns 335,170 shares in the company, valued at $15,327,324.10. The disclosure for this sale can be found here. Insiders have sold 220,476 shares of company stock worth $10,069,914 over the last ninety days. 2.55% of the stock is owned by insiders.

A number of hedge funds have recently modified their holdings of the business. Massachusetts Financial Services Co. MA raised its stake in shares of Cadence Design Systems by 0.6% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 22,592,711 shares of the software maker’s stock valued at $1,023,900,000 after acquiring an additional 140,805 shares during the period. Parnassus Investments CA purchased a new stake in shares of Cadence Design Systems in the 2nd quarter valued at approximately $460,597,000. Northern Trust Corp raised its stake in shares of Cadence Design Systems by 2.6% in the 2nd quarter. Northern Trust Corp now owns 3,326,013 shares of the software maker’s stock valued at $144,049,000 after acquiring an additional 84,704 shares during the period. Bank of New York Mellon Corp raised its stake in shares of Cadence Design Systems by 12.6% in the 2nd quarter. Bank of New York Mellon Corp now owns 2,550,297 shares of the software maker’s stock valued at $110,452,000 after acquiring an additional 285,828 shares during the period. Finally, First Trust Advisors LP raised its stake in shares of Cadence Design Systems by 31.0% in the 3rd quarter. First Trust Advisors LP now owns 2,332,181 shares of the software maker’s stock valued at $105,694,000 after acquiring an additional 551,793 shares during the period. 87.08% of the stock is currently owned by institutional investors.

About Cadence Design Systems

Cadence Design Systems, Inc provides electronic design automation software, emulation and prototyping hardware, system interconnect, and analysis 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, a verification computing platform; and Protium S1 field-programmable gate array prototyping platform.

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