On November 1, 2023, Paul Cunningham, the Senior Vice President of Cadence Design Systems Inc (CDNS, Financial), sold 1,000 shares of the company. This move is part of a trend for the insider, who over the past year has sold a total of 7,000 shares and made no purchases.
Cadence Design Systems Inc is a leading provider of electronic design automation software and hardware for companies that design and develop complex electronic products. The company's products are used to design and develop integrated circuits, hardware, and software that power a wide range of technologies, from smartphones to self-driving cars.
The insider's recent sell comes at a time when the stock is trading at $240.8 per share, giving the company a market cap of $67.89 billion. This price represents a price-earnings ratio of 71.09, significantly higher than the industry median of 25.9 and the company's historical median price-earnings ratio.
The insider's sell also coincides with a period when the stock is considered modestly overvalued based on its GuruFocus Value of $216.30, resulting in a price-to-GF-Value ratio of 1.11.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
The insider transaction history for Cadence Design Systems Inc shows a trend of more sells than buys over the past year. There have been 61 insider sells and 0 insider buys in total. This could indicate that insiders believe the stock is overvalued at its current price.
The insider's recent sell of 1,000 shares is a relatively small portion of the total shares they have sold over the past year. However, it is still noteworthy as it could indicate the insider's belief about the future performance of the stock.
It's important for investors to consider insider transactions as part of their overall analysis of a stock. While it's not the only factor to consider, it can provide valuable insights into the views of those with the most intimate knowledge of the company.
As always, investors should do their own research and consider a variety of factors before making investment decisions.
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.
