Cadence Design Systems (CDNS) Is Weak On High Volume Today
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cadence Design Systems as such a stock due to the following factors:
- CDNS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.1 million.
- CDNS has traded 567,854 shares today.
- CDNS is trading at 4.13 times the normal volume for the stock at this time of day.
- CDNS is trading at a new low 4.02% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on CDNS:
Cadence Design Systems, Inc. develops, sells, leases, and licenses electronic design automation (EDA) software, emulation and prototyping hardware, verification intellectual property (VIP), and design intellectual property (IP) for semiconductor and electronics systems industries worldwide. CDNS has a PE ratio of 23. Currently there are 5 analysts that rate Cadence Design Systems a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Cadence Design Systems has been 2.9 million shares per day over the past 30 days. Cadence Design Systems has a market cap of $7.8 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.91 and a short float of 4.1% with 6.38 days to cover. Shares are up 25.6% year-to-date as of the close of trading on Monday.
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Analysis:
rates Cadence Design Systems as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- CDNS's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 8.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.56, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, CDNS has a quick ratio of 1.86, which demonstrates the ability of the company to cover short-term liquidity needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Software industry and the overall market, CADENCE DESIGN SYSTEMS INC's return on equity exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 41.66% and other important driving factors, this stock has surged by 30.50% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CDNS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- You can view the full Cadence Design Systems Ratings Report.
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