Cadence Design Systems (NASDAQ:CDNS) Updates Q3 Earnings Guidance

Cadence Design Systems (NASDAQ:CDNS) issued an update on its third quarter earnings guidance on Monday morning. The company provided earnings per share guidance of $1.39-1.49 for the period, compared to the consensus earnings per share estimate of $1.60. The company issued revenue guidance of $1.165-1.195 billion, compared to the consensus revenue estimate of $1.19 billion. Cadence Design Systems also updated its FY24 guidance to $5.77-5.97 EPS.

Analysts Set New Price Targets

Several brokerages recently commented on CDNS. Robert W. Baird boosted their price target on Cadence Design Systems from $322.00 to $341.00 and gave the company an outperform rating in a research note on Tuesday, July 2nd. Wells Fargo & Company boosted their price target on Cadence Design Systems from $330.00 to $350.00 and gave the company an overweight rating in a research note on Tuesday, April 16th. Piper Sandler reaffirmed a neutral rating and issued a $318.00 price target on shares of Cadence Design Systems in a research note on Wednesday, July 10th. StockNews.com lowered Cadence Design Systems from a buy rating to a hold rating in a research note on Thursday, May 2nd. Finally, KeyCorp boosted their price target on Cadence Design Systems from $350.00 to $355.00 and gave the company an overweight rating in a research note on Thursday, June 27th. Three investment analysts have rated the stock with a hold rating and seven have given a buy rating to the company. According to MarketBeat.com, the stock has an average rating of Moderate Buy and a consensus target price of $334.89.

Cadence Design Systems Price Performance

Cadence Design Systems stock traded up $7.13 on Monday, reaching $287.08. The company’s stock had a trading volume of 3,067,589 shares, compared to its average volume of 1,579,116. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.19 and a current ratio of 1.32. The company has a market cap of $78.21 billion, a price-to-earnings ratio of 74.35, a PEG ratio of 3.43 and a beta of 1.03. The business’s fifty day moving average price is $302.82 and its 200 day moving average price is $297.90. Cadence Design Systems has a twelve month low of $217.77 and a twelve month high of $328.99.

Cadence Design Systems (NASDAQ:CDNS) last released its earnings results on Monday, July 22nd. The software maker reported $1.28 earnings per share for the quarter, topping analysts’ consensus estimates of $1.23 by $0.05. The company had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $1.04 billion. Cadence Design Systems had a return on equity of 32.44% and a net margin of 25.68%. The firm’s quarterly revenue was up 8.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.94 earnings per share. Equities analysts expect that Cadence Design Systems will post 4.77 earnings per share for the current fiscal year.

Insider Transactions at Cadence Design Systems

In other news, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the business’s stock in a transaction on Monday, July 15th. The stock was sold at an average price of $314.57, for a total transaction of $471,855.00. Following the completion of the sale, the director now owns 46,551 shares in the company, valued at $14,643,548.07. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. In related news, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the company’s stock in a transaction dated Monday, July 15th. The stock was sold at an average price of $314.57, for a total value of $471,855.00. Following the completion of the sale, the director now owns 46,551 shares in the company, valued at $14,643,548.07. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Chin-Chi Teng sold 32,184 shares of the company’s stock in a transaction dated Thursday, June 6th. The shares were sold at an average price of $297.45, for a total value of $9,573,130.80. Following the completion of the sale, the vice president now owns 95,408 shares of the company’s stock, valued at approximately $28,379,109.60. The disclosure for this sale can be found here. Insiders sold a total of 50,134 shares of company stock worth $14,987,093 over the last 90 days. 1.99% of the stock is owned by insiders.

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.