Cadence Design Systems (CDNS, Financial) Senior Vice President and Chief Financial Officer (CFO) Geoffrey Ribar sold 70,000 of his shares of the company for $29.46 per share on Feb. 6 according to a Form 4 filing with the Securities and Exchange Commission. He now owns 206,072 shares of the company.
Cadence Design Systems has a market cap of $8.12 billion, a price-earnings (P/E) ratio of 41.20, an enterprise value of $8.34 billion and a price-book (P/B) ratio of 10.96
Headquartered in California, Cadence Design Systems engages in the design and development of increasingly small and complex integrated circuits and electronics systems.
According to GuruFocus, Cadence Design Systems has a 6 out of 10 financial strength rating with a cash-debt ratio of 0.68 and an equity-asset ratio of 0.35. The Beneish M-score of -3.22 indicates the company is not a manipulator of its financial statements.
Cadence Design Systems has a 7 out of 10 profitability and growth rating with an operating margin of 13.49%, a net margin of 11.18%, a return on equity (ROE) of 18.97%, three-year revenue growth of 7.90% and three-year EBITDA growth of 9.30%.
Ribar may have decided to reduce his holding because of the company’s recent upswing in market price.
On Feb. 1, the company was trading at $25.82 per share, then its market price spiked – upward by nearly 13%Â –Â shortly after the company announced its fourth quarter and fiscal year 2016 results.
The company improved its reported fourth quarter revenue of $469 million compared to $441 million for the same period in 2015. The company also improved its total revenue for 2016 by 6.3%.
Below is a Peter Lynch chart that shows Cadence Design Systems is trading above its intrinsic value.
Disclosure: Author does not own any shares of this company.
Start a free seven-day trial of Premium Membership to GuruFocus.
