Paul Scannell, the Senior Vice President of Cadence Design (NASDAQ:CDNS) Systems Inc. (NASDAQ:CDNS), has sold a significant portion of the company's stock, according to a recent SEC filing. The transaction, executed on December 13, involved the sale of 3,171 shares at a price of $305.78 each, amounting to a total value of $969,628. The sale comes as CDNS trades near its 52-week high of $328.99, with the stock currently valued at $311.35. InvestingPro analysis indicates the stock is trading above its Fair Value, with impressive gross profit margins of 87.79%.
Following this sale, Scannell retains ownership of 14,318 shares in the company. The transaction was carried out under a Rule 10b5-1 Trading Plan, which Scannell adopted on September 13, 2024. This plan allows insiders of publicly traded corporations to set up a predetermined schedule for selling stocks to avoid accusations of insider trading. With a market capitalization of $85.55 billion, CDNS maintains strong financial health according to InvestingPro, which offers 12 additional investment tips and a comprehensive Pro Research Report for deeper analysis.
In other recent news, Cadence Design Systems has made several significant strides. The company reported a substantial 19% increase in total revenue for the third quarter of 2024, reaching $1.215 billion, largely driven by its AI-driven solutions and design enablement offerings. Cadence Design also updated its full-year earnings per share (EPS) outlook and expects fourth-quarter revenue to be between $1.325 billion and $1.365 billion. Furthermore, the company has updated its 2024 revenue forecast to $4.61 billion to $4.65 billion, with GAAP EPS projected between $3.70 and $3.76.
Analysts from Loop Capital initiated coverage on Cadence Design Systems, setting a new price target of $360 with a Buy rating, highlighting the growth potential in the semiconductor design sector. The firm's analysis underscored the strategic value of investing in Cadence Design, especially given the significant growth in the company's intellectual property business, which saw over a 50% year-over-year revenue increase.
Additionally, Cadence Design Systems welcomed Moshe Gavrielov to its board of directors. Gavrielov, with his extensive experience in the industry, is expected to contribute to the company's growth and enhance shareholder value. These recent developments underscore Cadence Design's strong market position and potential for further growth.
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