KeyBanc took its Cadence Design Systems [CDNS] rating to the equivalent of Overweight from Sector Weight, and the price target to $155, in a research note dated 2021-01-05. That figure represents around a 14.17% premium from where the company’s shares closed on Monday. Some new analysts also started their coverage, with UBS’s analysts assigning the shares to “a Neutral” rating in a research note to investors issued in late May. Meanwhile, BofA/Merrill had raised its rating on CDNS to “Buy” from the earlier “Neutral”, in a research note produced for clients April 22, 2020. In addition, Robert W. Baird launched coverage on February 19, 2020. The research firm rated CDNS “an Outperform”.
Is Cadence Design Systems Inc. [NASDAQ:CDNS] a Good Buy Right Now?
It should be noted that CDNS technical indicators for short, intermediate as well as long term progress have placed an overall average of 100% as Buy. The average signal changed from 100% Buy in the last week and compares with 96% Buy in the past month. Data from Cadence Design Systems Inc.’s Trend Spotter indicated that the signals were Weakest. The stock current average is 1.4 million shares in the past 20 days and the short term average signal indicates a 100% Buy. In the last 50 days, the average trading volume was 1.49 million shares while the medium term average advocated for 100% Buy. The average long-term signal stands at 100% Buy and the 100-day average volume stands at 1.49 million shares.
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CDNS Price Performance
On Wall Street, Cadence Design Systems Inc. [NASDAQ:CDNS] finished Monday’s session down -0.49% at $135.76. The stock went up to $138.31 at the same session while its lowest single day price was $133.51. In the last five days, it saw a rise of about 1.31%, Cadence Design Systems Inc. shares dropped by almost -0.49% since the beginning of the year. However, the share price has dropped to as low as -0.79% below its one year high. On 01/04/21, the company shares recorded $138.31, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/04/21, the same year at $133.51. The company’s shares have inclined by 92.79% in the past year. The 50-day SMA achieved is $119.36 while the 200-day SMA is $100.74. Volume gained to 2.5 million from 0.77 million in the previous session.
Cadence Design Systems Inc. [CDNS] Valuation Measures
Notably, Cadence Design Systems Inc. [CDNS] stock cannot be classified as a good candidate in the listing of underestimated low-priced Software – Application companies to purchase soonest possible with the prevailing 12-month PE ratio of 35.29. The measure means the stock is exchanging at a premium as compared to the 32.69x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 14.88 PS value ratio is reported for the last one year of reported earnings. That is higher than the industry average of 2.94 which means CDNS serve an unattractive investment opportunity compared to its competitors.
CDNS Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 133.41 level, and in case of violation of this particular level, it will cause more drop to 131.06 level. On the upper level, 140.66 is still the key resistance. The stock may increase to the subsequent resistance at 138.21. The Relative Strength Index (RSI) pinned on the 14-day chart is 73.02, implying a overbought technical stance while the MACD stands at 4.51, meaning price will increase in the next trading period. Percent R indicator moved to 12.81%, implying bullish price movement. Stochastic %K at 94.39% suggest selling the stock.
What is the short interest in Cadence Design Systems Inc.?
Short interest in the Cadence Design Systems Inc. stock has surged, increasing by 0.23 million shares to total 2.83 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 3.06 million, data from Yahoo Finance shows. The decrease of -8.13% suggests the stock saw some decreased bullish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 1.18% of the overall float for the stock.
Cadence Design Systems Inc.’s Biggest Shareholders: Who Owns Cadence Design Systems Inc. [CDNS]?
Filings by The Vanguard Group, Inc. showed that the firm now holds a total of 31,045,647 shares or roughly 11.13% of the outstanding CDNS shares. This means their shares have reduced by -1,054,887 from the 31,045,647 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, Massachusetts Financial Services updated stake is worth $3,125,774,166. Details in the latest 13F filings reveal that BlackRock Fund Advisors acquired their 0.06% stake valued at $1,955,669,399 while MFS International added theirs at $1,627,194,587. During the last quarter, BlackRock Fund Advisors raised 9,448 of its shares in Cadence Design Systems Inc. while MFS International bought 10,191 shares. The SSgA Funds Management, Inc.’s holdings currently number 12,340,293 shares at $1675318177.68. According to the firm’s last 13F report, Parnassus Investments shares in the company at filing stood at 6,827,534 shares, roughly $794,042,204.
CDNS Earnings Forecast For The Current Quarter
Cadence Design Systems Inc. [CDNS] is expected to report strong earnings results for the quarter ending on Dec 2020. Consensus estimates give the company expected revenues of $732.01M and an earnings per share of $0.74 for Dec 2020. Looking further ahead, the company is expected to report revenue of $703.11M at an EPS of $0.71 for Mar 2021. The estimates represent upside of 6.60% and 6.27% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
CDNS Earnings Estimates For The Current Year
For the financial year, Cadence Design Systems Inc. [NASDAQ:CDNS] is expected to bring in revenue of $2.66B. The returns are nearly $320.0 million higher than the company’s actual revenue recorded in the fiscal year 2019. In terms of EPS for the 2020, estimate put it at 2.7, higher than that of FY19 by $0.5. Estimates put this year’s earnings growth at 22.70%, 6.30% for the next, and at an annual 15.40% over the next 5-year period. As for sales, forecasts are for an increase of 13.60% in the current fiscal year and a further 6.60% over the following year.