GuruFocus - On July 1, 2024, Paul Cunningham, Sr. Vice President of Cadence Design (NASDAQ:CDNS) Systems Inc (NASDAQ:CDNS), sold 650 shares of the company at a price of $307.75 per share, as detailed in the SEC Filing. Following this transaction, the insider now owns 65,844 shares of the company.
Cadence Design Systems Inc (NASDAQ:CDNS) is a leading provider of system design tools, software, IP, and services. The company helps its customers harness the power of silicon chips and electronic systems. Cadence's products are used by semiconductor and electronics companies globally to develop advanced integrated circuits, including those used in mobile devices, data centers, and the Internet of Things (IoT).
Over the past year, Paul Cunningham has sold a total of 12,300 shares and has not made any purchases of the company's stock. This recent sale is part of a broader trend within Cadence Design Systems Inc, where there have been 64 insider sells and no insider buys over the past year.
The stock of Cadence Design Systems Inc was trading at $307.75 on the day of the sale, giving the company a market cap of approximately $86.30 billion. The price-earnings ratio of the company stands at 82.49, which is significantly higher than both the industry median of 27.005 and the company's historical median.
According to the GF Value, the intrinsic value of Cadence Design Systems Inc is estimated at $246.12 per share, making the stock modestly overvalued with a price-to-GF-Value ratio of 1.25.
The insider transaction history and the GF Value suggest a cautious approach to the stock at its current valuation. The GF Value is calculated based on historical trading multiples, an adjustment factor from GuruFocus, and future business performance estimates provided by Morningstar analysts.
This sale by the insider might reflect personal financial management rather than a commentary on the company's future prospects. Investors should consider the broader market conditions and the company's fundamentals when assessing the significance of this insider activity.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
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