This company combines impressive quality with a generous valuation: Cadence Design Systems Inc. (CDNS)

As of close of business last night, Cadence Design Systems Inc.’s stock clocked out at $203.52, up 3.69% from its previous closing price of $196.27. In other words, the price has increased by $+7.25 from its previous closing price. On the day, 2190111 shares were traded. CDNS stock price reached its highest trading level at $203.68 during the session, while it also had its lowest trading level at $197.42.

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To gain a deeper understanding of CDNS’s stock, we examine its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 63.19 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 49.84. For the most recent quarter (mrq), Quick Ratio is recorded 1.20 and its Current Ratio is at 1.30. In the meantime, Its Debt-to-Equity ratio is 0.27 whereas as Long-Term Debt/Eq ratio is at 0.24.

Upgrades & Downgrades

On September 29, 2022, Deutsche Bank started tracking the stock assigning a Buy rating and target price of $200.Deutsche Bank initiated its Buy rating on September 29, 2022, with a $200 target price.

Insider Transactions:

Investing in insider trades can also provide an investor with insight into how management views future stock prices. A recent insider transaction in this stock occurred on Mar 09 when WALL JOHN M sold 37,260 shares for $199.88 per share. The transaction valued at 7,447,529 led to the insider holds 120,740 shares of the business.

Nisewaner Karna sold 100 shares of CDNS for $19,694 on Mar 06. The Corporate VP, General Counsel now owns 15,273 shares after completing the transaction at $196.94 per share. On Feb 28, another insider, TAN LIP BU, who serves as the Executive Chair of the company, sold 30,000 shares for $194.07 each. As a result, the insider received 5,822,185 and left with 868,040 shares of the company.

Valuation Measures:

As of this moment, Cadence’s Price-to-Earnings (P/E) ratio for their current fiscal year is 65.93, and their Forward P/E ratio for the next fiscal year is 36.60. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 3.73. For the stock, the TTM Price-to-Sale (P/S) ratio is 15.65 while its Price-to-Book (P/B) ratio in mrq is 19.99.

Stock Price History:

Over the past 52 weeks, CDNS has reached a high of $202.96, while it has fallen to a 52-week low of $132.32. The 50-Day Moving Average of the stock is 184.15, while the 200-Day Moving Average is calculated to be 168.84.

Shares Statistics:

It appears that CDNS traded 1.51M shares on average per day over the past three months and 1.74M shares per day over the past ten days. A total of 272.94M shares are outstanding, with a floating share count of 271.51M. Insiders hold about 0.60% of the company’s shares, while institutions hold 90.20% stake in the company. Shares short for CDNS as of Jan 30, 2023 were 2.6M with a Short Ratio of 3.64M, compared to 2.63M on Dec 29, 2022. Therefore, it implies a Short% of Shares Outstanding of 0.95% and a Short% of Float of 1.25%.

Earnings Estimates

As of right now, 11 analysts gave their recommendation on the stock of the company. On average, analysts expect EPS of $0.92 for the current quarter, with a high estimate of $1.03 and a low estimate of $0.89, while EPS last year was $0.82. The consensus estimate for the next quarter is $1.1, with high estimates of $1.28 and low estimates of $0.98.

Analysts are recommending an EPS of between $4.34 and $4.2 for the fiscal current year, implying an average EPS of $4.23. EPS for the following year is $4.7, with 14 analysts recommending between $5.07 and $4.24.

Revenue Estimates

In the current quarter, 11 analysts expect revenue to total $884.83M. It ranges from a high estimate of $913.2M to a low estimate of $879.97M. As of the current estimate, Cadence Design Systems Inc.’s year-ago sales were $773.04M, an estimated increase of 14.50% from the year-ago figure. For the next quarter, 10 analysts are estimating revenue of $930.9M, an increase of 3.20% less than the figure of $14.50% in the same quarter last year. There is a high estimate of $1B for the next quarter, whereas the lowest estimate is $888.8M.

A total of 16 analysts have provided revenue estimates for CDNS’s current fiscal year. The highest revenue estimate was $3.58B, while the lowest revenue estimate was $2.99B, resulting in an average revenue estimate of $3.51B. In the same quarter a year ago, actual revenue was $2.99B, up 17.50% from the average estimate. Based on 16 analysts’ estimates, the company’s revenue will be $3.88B in the next fiscal year. The high estimate is $4B and the low estimate is $3.55B. The average revenue growth estimate for next year is up 10.50% from the average revenue estimate for this year.