Cadence Design Systems (NASDAQ:CDNS) Stock Price Up 3.5% After Better-Than-Expected Earnings

Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report)'s stock price traded up 3.5% on Tuesday following a better than expected earnings announcement. The stock traded as high as $298.93 and last traded at $295.84. 449,095 shares traded hands during trading, a decline of 77% from the average session volume of 1,932,176 shares. The stock had previously closed at $285.74.

The software maker reported $1.57 EPS for the quarter, topping the consensus estimate of $1.50 by $0.07. Cadence Design Systems had a net margin of 22.74% and a return on equity of 29.24%. The business had revenue of $1.24 billion for the quarter, compared to analysts' expectations of $1.24 billion. During the same quarter in the previous year, the company earned $1.17 EPS. The business's quarterly revenue was up 23.1% compared to the same quarter last year.

Analysts Set New Price Targets

Several research analysts have commented on the company. Needham & Company LLC restated a "buy" rating and set a $325.00 price objective on shares of Cadence Design Systems in a report on Tuesday. StockNews.com lowered Cadence Design Systems from a "buy" rating to a "hold" rating in a research report on Thursday, February 6th. Bank of America boosted their target price on Cadence Design Systems from $320.00 to $350.00 and gave the stock a "buy" rating in a research note on Tuesday. Robert W. Baird boosted their target price on Cadence Design Systems from $293.00 to $325.00 and gave the stock an "outperform" rating in a research note on Tuesday. Finally, Redburn Atlantic initiated coverage on Cadence Design Systems in a research note on Monday, January 13th. They set a "buy" rating and a $350.00 price target on the stock. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and eleven have issued a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $322.54.

Insider Transactions at Cadence Design Systems

In other Cadence Design Systems news, Director Ita M. Brennan sold 180 shares of Cadence Design Systems stock in a transaction on Thursday, April 24th. The shares were sold at an average price of $275.00, for a total transaction of $49,500.00. Following the sale, the director now owns 7,411 shares of the company's stock, valued at $2,038,025. The trade was a 2.37 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Paul Scannell sold 4,710 shares of Cadence Design Systems stock in a transaction on 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 directly owns 28,442 shares in the company, valued at approximately $8,532,600. This trade represents a 14.21 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 6,840 shares of company stock valued at $1,980,999 over the last ninety days. Insiders own 1.99% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of CDNS. Norges Bank acquired a new position in shares of Cadence Design Systems during the 4th quarter valued at about $1,170,209,000. GAMMA Investing LLC boosted its position in shares of Cadence Design Systems by 31,049.1% during the 1st quarter. GAMMA Investing LLC now owns 1,218,241 shares of the software maker's stock valued at $309,835,000 after acquiring an additional 1,214,330 shares during the last quarter. Schroder Investment Management Group boosted its position in shares of Cadence Design Systems by 53.1% during the 4th quarter. Schroder Investment Management Group now owns 2,064,219 shares of the software maker's stock valued at $623,105,000 after acquiring an additional 716,041 shares during the last quarter. FMR LLC boosted its position in shares of Cadence Design Systems by 8.7% during the 4th quarter. FMR LLC now owns 7,978,652 shares of the software maker's stock valued at $2,397,266,000 after acquiring an additional 639,146 shares during the last quarter. Finally, Alliancebernstein L.P. raised its holdings in Cadence Design Systems by 12.5% in the 4th quarter. Alliancebernstein L.P. now owns 5,676,194 shares of the software maker's stock valued at $1,705,469,000 after buying an additional 632,175 shares during the period. Institutional investors and hedge funds own 84.85% of the company's stock.

Cadence Design Systems Stock Performance

The stock has a market capitalization of $82.22 billion, a PE ratio of 77.65, a price-to-earnings-growth ratio of 3.88 and a beta of 1.14. The firm's fifty day moving average is $257.13 and its 200-day moving average is $282.53. The company has a current ratio of 2.93, a quick ratio of 2.27 and a debt-to-equity ratio of 0.53.

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.