Cadence Design Systems (NASDAQ:CDNS) Posts Earnings Results, Beats Expectations By $0.05 EPS

Cadence Design Systems (NASDAQ:CDNSGet Free Report) released its quarterly earnings results on Monday. The software maker reported $1.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.33 by $0.05, MarketWatch Earnings reports. The company had revenue of $1.07 billion during the quarter, compared to analysts’ expectations of $1.06 billion. Cadence Design Systems had a return on equity of 34.64% and a net margin of 24.42%. The company’s revenue for the quarter was up 18.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.75 earnings per share. Cadence Design Systems updated its Q1 guidance to $1.10-$1.14 EPS and its FY24 guidance to $5.87-$5.97 EPS.

Cadence Design Systems Stock Down 1.7 %

Shares of Cadence Design Systems stock traded down $5.36 during midday trading on Monday, hitting $306.58. The company’s stock had a trading volume of 3,265,848 shares, compared to its average volume of 1,536,018. Cadence Design Systems has a 1-year low of $183.80 and a 1-year high of $315.70. The company has a quick ratio of 1.31, a current ratio of 1.44 and a debt-to-equity ratio of 0.21. The firm has a market capitalization of $83.41 billion, a P/E ratio of 88.87, a PEG ratio of 3.76 and a beta of 1.07. The stock has a 50-day simple moving average of $277.26 and a 200-day simple moving average of $254.90.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. StockNews.com cut Cadence Design Systems from a “buy” rating to a “hold” rating in a research report on Wednesday, February 7th. Morgan Stanley assumed coverage on shares of Cadence Design Systems in a research report on Friday, November 10th. They issued an “equal weight” rating and a $260.00 price target on the stock. Wells Fargo & Company upped their price target on shares of Cadence Design Systems from $310.00 to $330.00 and gave the company an “overweight” rating in a report on Tuesday, February 6th. KeyCorp lifted their price objective on shares of Cadence Design Systems from $290.00 to $325.00 and gave the stock an “overweight” rating in a research note on Monday, February 5th. Finally, Needham & Company LLC reissued a “buy” rating and set a $268.00 target price on shares of Cadence Design Systems in a research note on Tuesday, October 24th. Two equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $282.22.

Read Our Latest Stock Analysis on CDNS

Insider Activity at Cadence Design Systems

In other Cadence Design Systems news, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the firm’s stock in a transaction dated Tuesday, February 6th. The stock was sold at an average price of $299.42, for a total transaction of $449,130.00. Following the completion of the sale, the director now directly owns 53,183 shares in the company, valued at approximately $15,924,053.86. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In related news, CFO John M. Wall sold 2,400 shares of Cadence Design Systems stock in a transaction on Monday, December 18th. The stock was sold at an average price of $271.91, for a total transaction of $652,584.00. Following the completion of the sale, the chief financial officer now owns 80,594 shares of the company’s stock, valued at $21,914,314.54. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the company’s stock in a transaction dated Tuesday, February 6th. The stock was sold at an average price of $299.42, for a total value of $449,130.00. Following the completion of the transaction, the director now directly owns 53,183 shares in the company, valued at $15,924,053.86. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 70,178 shares of company stock valued at $19,409,553. Company insiders own 1.67% of the company’s stock.

Hedge Funds Weigh In On Cadence Design Systems

A number of hedge funds have recently added to or reduced their stakes in CDNS. Norges Bank bought a new stake in Cadence Design Systems in the fourth quarter worth approximately $770,945,000. Alliancebernstein L.P. boosted its holdings in Cadence Design Systems by 620.0% in the fourth quarter. Alliancebernstein L.P. now owns 2,954,303 shares of the software maker’s stock worth $474,579,000 after purchasing an additional 2,543,966 shares in the last quarter. Moneta Group Investment Advisors LLC acquired a new position in Cadence Design Systems during the fourth quarter worth $227,854,000. Morgan Stanley raised its holdings in Cadence Design Systems by 38.6% during the fourth quarter. Morgan Stanley now owns 2,807,404 shares of the software maker’s stock valued at $450,982,000 after buying an additional 782,517 shares in the last quarter. Finally, Barclays PLC lifted its position in shares of Cadence Design Systems by 102.4% in the second quarter. Barclays PLC now owns 1,520,479 shares of the software maker’s stock worth $356,584,000 after buying an additional 769,129 shares during the last quarter. Institutional investors and hedge funds own 83.95% of the company’s stock.

Cadence Design Systems Company Profile

(Get Free Report)

Cadence Design Systems, Inc provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification.

Further Reading

Earnings History for Cadence Design Systems (NASDAQ:CDNS)

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