Cadence Design Systems (NASDAQ:CDNS) Posts Earnings Results, Beats Estimates By $0.07 EPS

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) announced its quarterly earnings data on Monday. The software maker reported $1.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.50 by $0.07, RTT News reports. The business had revenue of $1.24 billion for 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 company's revenue for the quarter was up 23.1% compared to the same quarter last year. During the same period last year, the firm earned $1.17 earnings per share. Cadence Design Systems updated its Q2 2025 guidance to 1.550-1.610 EPS and its FY 2025 guidance to 6.730-6.830 EPS.

Cadence Design Systems Stock Performance

Shares of CDNS traded up $1.99 during midday trading on Thursday, reaching $299.73. 2,302,655 shares of the stock were exchanged, compared to its average volume of 1,952,254. The business's 50-day moving average price is $257.13 and its 200 day moving average price is $282.53. The company has a debt-to-equity ratio of 0.53, a current ratio of 2.93 and a quick ratio of 2.27. Cadence Design Systems has a twelve month low of $221.56 and a twelve month high of $328.99. The company has a market capitalization of $82.22 billion, a price-to-earnings ratio of 77.65, a PEG ratio of 3.88 and a beta of 1.14.

Insider Transactions at Cadence Design Systems

In other news, VP Paul Scannell sold 4,710 shares of Cadence Design Systems stock in a transaction dated Tuesday, April 29th. The stock was sold at an average price of $300.00, for a total transaction of $1,413,000.00. Following the sale, the vice president now owns 28,442 shares in the company, valued at approximately $8,532,600. The trade was a 14.21 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Ita M. Brennan sold 180 shares of Cadence Design Systems stock in a transaction dated Thursday, April 24th. The stock was sold at an average price of $275.00, for a total value of $49,500.00. Following the sale, the director now owns 7,411 shares in the company, valued at $2,038,025. This trade represents a 2.37 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 6,840 shares of company stock worth $1,980,999. Corporate insiders own 1.99% of the company's stock.

Hedge Funds Weigh In On Cadence Design Systems

A hedge fund recently raised its stake in Cadence Design Systems stock. Brighton Jones LLC increased its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 80.2% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 1,519 shares of the software maker's stock after buying an additional 676 shares during the quarter. Brighton Jones LLC's holdings in Cadence Design Systems were worth $456,000 at the end of the most recent quarter. 84.85% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

CDNS has been the topic of several analyst reports. Loop Capital reduced their price objective on Cadence Design Systems from $360.00 to $340.00 and set a "buy" rating on the stock in a research note on Wednesday, February 19th. Oppenheimer reduced their price objective on Cadence Design Systems from $225.00 to $200.00 and set an "underperform" rating on the stock in a research note on Wednesday, March 19th. Robert W. Baird raised their price target on Cadence Design Systems from $293.00 to $325.00 and gave the company an "outperform" rating in a research note on Tuesday. Bank of America raised their price target on Cadence Design Systems from $320.00 to $350.00 and gave the company a "buy" rating in a research note on Tuesday. Finally, Mizuho raised their price target on Cadence Design Systems from $300.00 to $325.00 and gave the company an "outperform" rating in a research note on Tuesday. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and eleven have assigned a buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $322.54.

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.