Cadence Design Systems (NASDAQ:CDNS) Releases Q2 2024 Earnings Guidance

Cadence Design Systems (NASDAQ:CDNS) issued an update on its second quarter 2024 earnings guidance on Monday morning. The company provided earnings per share (EPS) guidance of 1.200-1.240 for the period, compared to the consensus estimate of 1.430. The company issued revenue guidance of $1.0 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion. Cadence Design Systems also updated its FY 2024 guidance to 5.880-5.980 EPS.

Cadence Design Systems Stock Performance

Shares of NASDAQ:CDNS traded down $1.59 during trading on Wednesday, reaching $280.17. The stock had a trading volume of 575,637 shares, compared to its average volume of 1,543,212. Cadence Design Systems has a 52 week low of $194.01 and a 52 week high of $327.36. The firm has a market capitalization of $76.27 billion, a price-to-earnings ratio of 73.38, a P/E/G ratio of 3.47 and a beta of 1.04. The company has a quick ratio of 1.13, a current ratio of 1.24 and a debt-to-equity ratio of 0.09. The stock has a fifty day simple moving average of $304.84 and a two-hundred day simple moving average of $280.99.

Cadence Design Systems (NASDAQ:CDNS) last announced its earnings results on Monday, April 22nd. The software maker reported $1.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.13 by $0.04. Cadence Design Systems had a net margin of 25.68% and a return on equity of 33.53%. The business had revenue of $1.01 billion for the quarter, compared to analyst estimates of $1 billion. During the same quarter in the previous year, the firm posted $1.02 earnings per share. Cadence Design Systems’s revenue was down 1.2% compared to the same quarter last year. As a group, analysts anticipate that Cadence Design Systems will post 4.81 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

CDNS has been the topic of a number of research reports. Morgan Stanley raised shares of Cadence Design Systems from an equal weight rating to an overweight rating and boosted their target price for the stock from $260.00 to $350.00 in a research report on Wednesday, February 14th. Needham & Company LLC reiterated a buy rating and set a $320.00 price target on shares of Cadence Design Systems in a research note on Friday, April 19th. Wells Fargo & Company lifted their price target on shares of Cadence Design Systems from $330.00 to $350.00 and gave the stock an overweight rating in a research note on Tuesday, April 16th. Piper Sandler decreased their price target on shares of Cadence Design Systems from $334.00 to $318.00 and set a neutral rating on the stock in a research note on Tuesday. Finally, Rosenblatt Securities reiterated a neutral rating and set a $280.00 price target on shares of Cadence Design Systems in a research note on Monday. Three research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of Moderate Buy and an average price target of $316.50.

Insider Buying and Selling

In related news, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the company’s stock in a transaction dated Tuesday, February 6th. The shares were sold at an average price of $299.42, for a total transaction of $449,130.00. Following the transaction, the director now owns 53,183 shares in the company, valued at approximately $15,924,053.86. The sale was disclosed in a filing with the SEC, which can be accessed through this link. In other Cadence Design Systems news, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the business’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 of the company’s stock, valued at approximately $15,924,053.86. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Thomas P. Beckley sold 65,268 shares of the business’s stock in a transaction dated Thursday, February 15th. The stock was sold at an average price of $296.98, for a total value of $19,383,290.64. Following the sale, the vice president now directly owns 156,156 shares of the company’s stock, valued at $46,375,208.88. The disclosure for this sale can be found here. Insiders have sold a total of 173,044 shares of company stock worth $52,231,207 in the last 90 days. Corporate insiders own 0.62% of the company’s stock.

Cadence Design Systems Company Profile

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.