In a recent transaction, Alberto Sangiovanni-Vincentelli, a board member of Cadence Design (NASDAQ:CDNS) Systems Inc. (NASDAQ:CDNS), sold a number of shares in the company. The sale, which took place on March 14, 2024, involved a total of 1,500 shares of common stock, resulting in an aggregate transaction value exceeding $460,000.
The shares were sold in two separate transactions. In the first, 514 shares were sold at a weighted average price of $308.1475, with individual sale prices ranging from $307.99 to $308.435. The second transaction involved the sale of 986 shares at a weighted average price of $309.6841, with sale prices ranging between $309.02 and $310.00. These transactions were conducted under a pre-arranged trading plan, known as a Rule 10b5-1 plan, that Sangiovanni-Vincentelli had adopted on September 13, 2023.
Following these transactions, Sangiovanni-Vincentelli still retains a substantial stake in Cadence Design Systems, with 51,683 shares of common stock remaining in his possession. This indicates a continued vested interest in the company's performance despite the recent sale.
Cadence Design Systems, headquartered in San Jose, California, is a leader in the electronic design automation industry, providing software, hardware, and intellectual property to design advanced semiconductor chips and systems.
Investors and interested parties can obtain full details regarding the number of shares sold at each price point by requesting the information from the reporting person, as per the footnotes in the Form 4 filing with the Securities and Exchange Commission.
InvestingPro Insights
Amidst the recent share sales by board member Alberto Sangiovanni-Vincentelli, Cadence Design Systems Inc. (NASDAQ:CDNS) presents a mix of financial strengths and market valuation considerations. The company's impressive gross profit margin of 89.36% in the last twelve months as of Q4 2023, as reported by InvestingPro, underscores its efficiency in generating profit from its revenues. Additionally, the company's operating income margin of 31.16% during the same period reflects its operational effectiveness.
On the valuation front, Cadence Design Systems is trading at a high earnings multiple, with a P/E ratio of 78.33 and an adjusted P/E ratio for the last twelve months of 79.56. This could suggest that the market has high expectations for the company's future earnings growth. Moreover, with a Price / Book ratio of 24.1, the company is trading at a premium compared to its book value, which could be a point of consideration for value-oriented investors. An InvestingPro Tip worth noting is that the company has been trading near its 52-week high, with the price at 93.03% of the peak, potentially indicating strong market sentiment.
Investors interested in a deeper analysis of Cadence Design Systems, along with additional InvestingPro Tips, can access more insights at Investing.com. Currently, there are 17 additional InvestingPro Tips available, offering a comprehensive overview of the company's financial health and market performance. For those looking to subscribe to InvestingPro for a more detailed investment analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.