Are Analysts Too Bullish On Cadence Design Systems, Inc. (CDNS)

Cadence Design Systems, Inc. (NASDAQ:CDNS) currently has a daily average trading volume of 1.59M but it saw 1221922 shares traded in last market. With a market cap of 87.12B USD, the company’s current market price of $319.80 came rising about 1.44 while comparing to the previous closing price of $315.26. In past 52 weeks, the stock remained buoying in the range of price level as high as $328.99 and as low as $217.77.

Taking a look at 20-day trading activity of Cadence Design Systems, Inc. (CDNS) gives us an average price of $314.00, while its current price level is -2.79% below from 52-week high level whereas it is 46.85% above from lowest level seen by the stock during that period. Simple moving average of 50 days or SMA-50 of the stock’s closing price is $298.34 while that of 200 days or SMA-200 reads an average of $282.68. A closer look into the stock’s movement over the week reveals that its volatility is standing at 1.96% during that period while stretching the period over a month that increases to 2.28%. It is also necessary to take a look into other indicators of a stock too, to get a better idea about its price movement. And in doing so, we find stock’s 14-day relative strength index (RSI) standing at 60.81 which implies that the stock is in neutral territory.

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The company’s shares got several price updates from the analyst firms in past one month and most recent of them is from the Piper Sandler which initiated the stock as “Neutral” in its note to investors issued on April 04, 2024, recommending a price target of $334 for it. Morgan Stanley upgraded its recommendation for the stock as a “Overweight” from “Equal-Weight” on February 14, 2024 while assigning a price target of $350. Rosenblatt issued its recommendations for the stock as it downgraded the price target for the stock is $280.

Over the week, CDNS’s stock price is moving 0.95% up while it is 8.62% when we observe its performance for the past one month. Year-to-date it is 17.41% up and over the past year, the stock is showing an upside performance of 36.42%.

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Currently, Cadence Design Systems, Inc.’s total number of outstanding shares is 271.71M. Company’s return on investment (ROI) stands at 27.07% and return on equity (ROE) at 32.17%. It has a price to earnings ratio (P/E ratio) of 83.33 while having a 46.46 of forward P/E ratio. Stock’s beta reads 1.03. Stock has a price to book (P/B) ratio of 24.39 while price to sale or P/S ratio amounts to 21.37. Its return on asset (ROA) is 19.22% on average.

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