Cadence Design Systems (NASDAQ:CDNS) Issues Q2 Earnings Guidance

Cadence Design Systems (NASDAQ:CDNS) updated its second quarter earnings guidance on Monday. The company provided EPS guidance of $1.20-$1.24 for the period, compared to the consensus EPS estimate of $1.43. The company issued revenue guidance of $1.03-$1.05 billion, compared to the consensus revenue estimate of $1.11 billion. Cadence Design Systems also updated its FY 2024 guidance to 5.880-5.980 EPS.

Analyst Ratings Changes

A number of brokerages recently commented on CDNS. Piper Sandler began coverage on shares of Cadence Design Systems in a research note on Thursday, April 4th. They issued a neutral rating and a $334.00 price target on the stock. Stifel Nicolaus increased their target price on shares of Cadence Design Systems from $300.00 to $350.00 and gave the stock a buy rating in a research report on Tuesday, February 13th. StockNews.com lowered shares of Cadence Design Systems from a buy rating to a hold rating in a research report on Tuesday, April 16th. Morgan Stanley upgraded shares of Cadence Design Systems from an equal weight rating to an overweight rating and increased their target price for the stock from $260.00 to $350.00 in a research report on Wednesday, February 14th. Finally, Robert W. Baird increased their target price on shares of Cadence Design Systems from $302.00 to $322.00 and gave the stock an outperform rating in a research report on Thursday, April 18th. Three analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of Moderate Buy and a consensus price target of $318.10.

Cadence Design Systems Stock Performance

Shares of Cadence Design Systems stock opened at $285.02 on Tuesday. The company has a 50 day moving average of $305.09 and a 200-day moving average of $280.73. Cadence Design Systems has a 1-year low of $194.01 and a 1-year high of $327.36. The company has a current ratio of 1.24, a quick ratio of 1.13 and a debt-to-equity ratio of 0.09. The company has a market cap of $77.59 billion, a PE ratio of 74.61, a price-to-earnings-growth ratio of 3.41 and a beta of 1.04.

Cadence Design Systems (NASDAQ:CDNS) last issued its quarterly earnings results on Monday, April 22nd. The software maker reported $1.17 earnings per share for the quarter, topping analysts’ consensus estimates of $1.13 by $0.04. Cadence Design Systems had a net margin of 25.46% and a return on equity of 35.57%. The company had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $1 billion. During the same quarter in the prior year, the firm posted $1.02 EPS. The firm’s quarterly revenue was down 1.2% on a year-over-year basis. As a group, equities research analysts forecast that Cadence Design Systems will post 4.81 earnings per share for the current fiscal year.

Insider Transactions at Cadence Design Systems

In related news, VP Aneel Zaman sold 1,207 shares of the stock in a transaction that occurred on Tuesday, February 27th. The shares were sold at an average price of $303.90, for a total value of $366,807.30. Following the completion of the transaction, the vice president now owns 61,150 shares of the company’s stock, valued at approximately $18,583,485. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. In related news, VP Aneel Zaman sold 1,207 shares of the stock in a transaction that occurred on Tuesday, February 27th. The shares were sold at an average price of $303.90, for a total value of $366,807.30. Following the completion of the transaction, the vice president now owns 61,150 shares of the company’s stock, valued at approximately $18,583,485. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP Thomas P. Beckley sold 65,268 shares of the stock in a transaction that occurred on Thursday, February 15th. The shares were sold at an average price of $296.98, for a total transaction of $19,383,290.64. Following the completion of the transaction, the vice president now directly owns 156,156 shares of the company’s stock, valued at approximately $46,375,208.88. The disclosure for this sale can be found here. In the last 90 days, insiders sold 177,544 shares of company stock valued at $53,581,207. Company insiders own 0.62% of the company’s stock.

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.