Cadence Design Systems (NASDAQ:CDNS) Sets New 12-Month Low - Should You Sell?

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The company traded as low as $240.35 and last traded at $241.72, with a volume of 1392927 shares. The stock had previously closed at $250.50.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on CDNS shares. Loop Capital dropped their target price on shares of Cadence Design Systems from $360.00 to $340.00 and set a "buy" rating on the stock in a research report on Wednesday, February 19th. Robert W. Baird cut their target price on Cadence Design Systems from $340.00 to $335.00 and set an "outperform" rating on the stock in a research report on Thursday, February 20th. Needham & Company LLC reaffirmed a "buy" rating and set a $325.00 price target on shares of Cadence Design Systems in a research report on Wednesday, February 19th. Redburn Atlantic started coverage on Cadence Design Systems in a report on Monday, January 13th. They issued a "buy" rating and a $350.00 price objective on the stock. Finally, StockNews.com downgraded Cadence Design Systems from a "buy" rating to a "hold" rating in a report on Thursday, February 6th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and ten have issued a buy rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $326.92.

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Cadence Design Systems Trading Up 0.0 %

The company has a quick ratio of 2.27, a current ratio of 2.93 and a debt-to-equity ratio of 0.53. The stock has a market cap of $66.67 billion, a price-to-earnings ratio of 63.01, a PEG ratio of 3.88 and a beta of 1.03. The company's fifty day moving average is $289.91 and its two-hundred day moving average is $285.68.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its quarterly earnings data on Tuesday, February 18th. The software maker reported $1.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.82 by ($0.33). The firm had revenue of $1.36 billion for the quarter, compared to analysts' expectations of $1.35 billion. Cadence Design Systems had a return on equity of 29.24% and a net margin of 22.74%. On average, research analysts predict that Cadence Design Systems, Inc. will post 5.41 EPS for the current fiscal year.

Insider Activity at Cadence Design Systems

In other Cadence Design Systems news, VP Paul Cunningham sold 650 shares of the company's stock in a transaction on Monday, March 3rd. The shares were sold at an average price of $252.73, for a total value of $164,274.50. Following the completion of the transaction, the vice president now owns 58,123 shares in the company, valued at $14,689,425.79. This represents a 1.11 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Paul Scannell sold 3,171 shares of the firm's stock in a transaction dated Friday, December 13th. The stock was sold at an average price of $305.78, for a total value of $969,628.38. Following the transaction, the vice president now directly owns 14,318 shares in the company, valued at approximately $4,378,158.04. The trade was a 18.13 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 108,416 shares of company stock valued at $33,504,126 over the last three months. 1.99% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in CDNS. Park Square Financial Group LLC purchased a new position in shares of Cadence Design Systems during the fourth quarter worth approximately $348,000. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in Cadence Design Systems during the 4th quarter worth $75,205,000. Armis Advisers LLC acquired a new position in Cadence Design Systems in the fourth quarter valued at $635,000. Integrated Advisors Network LLC boosted its stake in shares of Cadence Design Systems by 156.9% during the fourth quarter. Integrated Advisors Network LLC now owns 3,406 shares of the software maker's stock worth $1,023,000 after buying an additional 2,080 shares during the period. Finally, Great Valley Advisor Group Inc. increased its position in Cadence Design Systems by 3.0% in the 4th quarter. Great Valley Advisor Group Inc. now owns 32,694 shares of the software maker's stock valued at $9,823,000 after acquiring an additional 941 shares during the period. Hedge funds and other institutional investors own 84.85% of the company's stock.

About Cadence Design Systems

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 logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification.