Cadence Design Systems (NASDAQ:CDNS) Announces Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• Cadence Design Systems beat quarterly expectations, reporting adjusted EPS of $2.11 versus the $2.05 consensus and revenue of $1.63 billion versus $1.61 billion expected.
• Shares rose $5.68 to $322.17 following the results, while the stock carries a market capitalization of $88.72 billion and trades at a P/E ratio of 64.05.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $404.14; insiders sold $2.83 million of stock over the past 90 days.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) posted its earnings results on Monday. The software maker reported $2.11 EPS for the quarter, topping the consensus estimate of $2.05 by $0.06, FiscalAI reports. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The firm had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.61 billion.

Cadence Design Systems Stock Performance

Cadence Design Systems stock traded up $5.68 on Monday, reaching $322.17. 4,343,068 shares of the stock were exchanged, compared to its average volume of 2,443,560. The stock has a market cap of $88.72 billion, a PE ratio of 64.05, a PEG ratio of 3.38 and a beta of 1.13. The company has a current ratio of 1.74, a quick ratio of 1.53 and a debt-to-equity ratio of 0.36. Cadence Design Systems has a twelve month low of $262.75 and a twelve month high of $416.69. The firm has a fifty day moving average price of $318.19 and a two-hundred day moving average price of $340.75.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. Rosenblatt Securities reaffirmed a "buy" rating and issued a $420.00 price target on shares of Cadence Design Systems in a research report on Friday. Weiss Ratings raised Cadence Design Systems from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday. Morgan Stanley reissued an "overweight" rating and issued a $400.00 price objective (up from $370.00) on shares of Cadence Design Systems in a research note on Wednesday, July 29th. Rothschild & Co Redburn boosted their target price on Cadence Design Systems from $385.00 to $395.00 and gave the stock a "buy" rating in a report on Tuesday, July 28th. Finally, Benchmark restated a "buy" rating on shares of Cadence Design Systems in a report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $404.14.

Insiders Place Their Bets

In related news, Director Ita M. Brennan sold 180 shares of the business's stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $285.51, for a total transaction of $51,391.80. Following the completion of the transaction, the director owned 7,824 shares of the company's stock, valued at approximately $2,233,830.24. The trade was a 2.25% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 280 shares of the stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $339.00, for a total value of $94,920.00. Following the sale, the vice president owned 31,720 shares of the company's stock, valued at approximately $10,753,080. The trade was a 0.88% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 8,960 shares of company stock valued at $2,834,139. 0.49% of the stock is owned by company insiders.

About Cadence Design Systems

Cadence Design Systems, Inc develops computational software, hardware, and semiconductor intellectual property used to design and verify electronic systems and integrated circuits. Its electronic design automation (EDA) solutions support chip development across areas such as digital and custom IC design, functional verification, emulation, prototyping, and system analysis.

The company also provides semiconductor IP, including processor cores, interconnect technologies, memory interfaces, and other building blocks that help customers develop complex chips.

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