Cadence Design Systems Inc. (CDNS) Shares Tick Up after Upgrade at DA Davidson

Cadence Design Systems Inc. (NASDAQ: CDNS) shares rose in value early today on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Analysts at DA Davidson upgraded shares of Cadence Design Systems Inc. (NASDAQ: CDNS) from Neutral to Buy today. The company currently has a rating of Buy on the shares. The one-year price target of $26.96 is higher than the opening price of $25.94, causing a number of other analysts to comment on the stock recently. Looking back over the last 52 weeks, Cadence Design Systems Inc. stock has a high of $26.45. Share prices often trend to the upside on recommendations and new price targets of professional brokerage firms.

Meanwhile, U.S. stock futures on Monday pointed to a higher open, as investors prepared for the start of earnings season

S&P 500 futures ESZ6, +0.44% rose by 9 points, or 0.4%, to 2,155.50, while Dow Jones Industrial Average futures YMZ6, +0.40% gained 64 points, or 0.4%, to 18,221.

Nasdaq-100 futures NQZ6, +0.42% tacked on 17.75 points, or 0.4%, to 4,876.75.Meanwhile, U.S. stock futures on Monday pointed to a higher open, as investors prepared for the start of earnings season

Shares of Cadence Design Systems Inc. (NASDAQ: CDNS) opened at $25.94 yesterday and traded in a range between, $25.81 and $26.45, and last traded at $26.43, which is a spike of $0.90 or 0.04 from the previous closing price.

Cadence Design Systems Inc. (NASDAQ: CDNS) currently has a market cap of 7.73B.

Cadence Design Systems Inc.Trading Volume

The stock’s average daily volume is 1,866,720 shares out of a total float 288,219,000 and some 447,771 shares crossed the trading desk yesterday, below normal. Momentum traders often use upticks in trading volume to pinpoint substantial volume growth or circulation by institutional investors, so look for trading volume to pick up in the coming days.

While higher trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.

Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.

Cadence Design Systems Inc. Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.

With that in mind, Cadence Design Systems Inc. (NASDAQ: CDNS) now has a 50-day MA of $25.20 and 200-day MA of $24.45. It has traded in a 52-week range between $18.32 – 26.450 and today’s last price is 0.00% lower than the 52 week high of $26.45.

Earnings growth is ann important factor to research when investing in stocks and investors identify companies that have increased their earnings at least 25% or more over a 3 year period.

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