Cadence Design Systems (NASDAQ:CDNS) Shares Up 3.5% After Strong Earnings

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS) rose 3.5% on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $298.93 and last traded at $295.84. Approximately 449,095 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 1,932,176 shares. The stock had previously closed at $285.74.

The software maker reported $1.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.50 by $0.07. The company had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.24 billion. Cadence Design Systems had a return on equity of 29.24% and a net margin of 22.74%. The business’s revenue was up 23.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.17 earnings per share.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. Piper Sandler lifted their price target on Cadence Design Systems from $318.00 to $328.00 and gave the company an “overweight” rating in a research note on Wednesday, February 19th. Needham & Company LLC restated a “buy” rating and issued a $325.00 price target on shares of Cadence Design Systems in a research report on Tuesday. Loop Capital cut their price target on shares of Cadence Design Systems from $360.00 to $340.00 and set a “buy” rating on the stock in a report on Wednesday, February 19th. JPMorgan Chase & Co. upgraded Cadence Design Systems from a “neutral” rating to an “overweight” rating and increased their price objective for the company from $300.00 to $325.00 in a report on Thursday, April 24th. Finally, Bank of America reduced their price target on Cadence Design Systems from $365.00 to $350.00 and set a “buy” rating on the stock in a research report on Wednesday, February 19th. One research analyst has rated the stock with a sell rating, two have given a hold rating and eleven have given a buy rating to the company’s stock. According to MarketBeat.com, Cadence Design Systems currently has an average rating of “Moderate Buy” and an average price target of $322.54.

Insider Activity at Cadence Design Systems

In other Cadence Design Systems news, VP Paul Cunningham sold 650 shares of the company’s stock in a transaction dated Monday, March 3rd. The shares were sold at an average price of $252.73, for a total value of $164,274.50. Following the sale, the vice president now owns 58,123 shares in the company, valued at approximately $14,689,425.79. This represents a 1.11 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Ita M. Brennan sold 180 shares of the firm’s stock in a transaction that occurred on Thursday, April 24th. The shares were sold at an average price of $275.00, for a total value of $49,500.00. Following the transaction, the director now directly owns 7,411 shares of the company’s stock, valued at approximately $2,038,025. This trade represents a 2.37 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 2,130 shares of company stock worth $567,999 over the last quarter. Corporate insiders own 1.99% of the company’s stock.

Institutional Investors Weigh In On Cadence Design Systems

Institutional investors have recently made changes to their positions in the company. Avior Wealth Management LLC increased its holdings in shares of Cadence Design Systems by 12.4% in the 4th quarter. Avior Wealth Management LLC now owns 326 shares of the software maker’s stock worth $98,000 after purchasing an additional 36 shares in the last quarter. Accredited Investors Inc. lifted its stake in Cadence Design Systems by 1.7% during the 4th quarter. Accredited Investors Inc. now owns 2,176 shares of the software maker’s stock valued at $654,000 after acquiring an additional 36 shares during the period. Principal Street Partners LLC boosted its holdings in shares of Cadence Design Systems by 2.6% during the 4th quarter. Principal Street Partners LLC now owns 1,455 shares of the software maker’s stock valued at $437,000 after acquiring an additional 37 shares during the last quarter. Lindbrook Capital LLC grew its stake in shares of Cadence Design Systems by 1.7% in the fourth quarter. Lindbrook Capital LLC now owns 2,230 shares of the software maker’s stock worth $670,000 after acquiring an additional 38 shares during the period. Finally, Oarsman Capital Inc. raised its holdings in shares of Cadence Design Systems by 3.8% during the fourth quarter. Oarsman Capital Inc. now owns 1,042 shares of the software maker’s stock valued at $313,000 after purchasing an additional 38 shares during the last quarter. Hedge funds and other institutional investors own 84.85% of the company’s stock.

Cadence Design Systems Stock Up 3.9 %

The company has a market cap of $81.44 billion, a PE ratio of 76.90, a PEG ratio of 3.88 and a beta of 1.14. The company has a quick ratio of 2.27, a current ratio of 2.93 and a debt-to-equity ratio of 0.53. The company’s fifty day moving average is $254.77 and its 200-day moving average is $282.17.

About Cadence Design Systems

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.