Cadence Design Systems (NASDAQ:CDNS) Releases Q3 2024 Earnings Guidance

Cadence Design Systems (NASDAQ:CDNS) updated its third quarter 2024 earnings guidance on Monday. The company provided earnings per share (EPS) guidance of 1.390-1.490 for the period, compared to the consensus estimate of 1.600. The company issued revenue guidance of $1.2 billion-$1.2 billion, compared to the consensus revenue estimate of $1.2 billion. Cadence Design Systems also updated its FY 2024 guidance to 5.770-5.970 EPS.

Cadence Design Systems Stock Down 0.7 %

Shares of NASDAQ:CDNS traded down $1.76 during trading on Thursday, hitting $264.58. 256,326 shares of the company were exchanged, compared to its average volume of 1,594,187. The stock has a market capitalization of $72.08 billion, a P/E ratio of 69.36, a PEG ratio of 3.46 and a beta of 1.03. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.32 and a quick ratio of 1.19. Cadence Design Systems has a 12-month low of $217.77 and a 12-month high of $328.99. The firm’s 50 day moving average price is $302.33 and its 200-day moving average price is $298.11.

Cadence Design Systems (NASDAQ:CDNS) last issued its quarterly earnings data on Monday, July 22nd. The software maker reported $1.28 earnings per share for the quarter, topping the consensus estimate of $1.22 by $0.06. Cadence Design Systems had a net margin of 25.36% and a return on equity of 31.52%. The business had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $1.04 billion. During the same quarter in the previous year, the firm earned $0.94 EPS. The company’s revenue was up 8.6% compared to the same quarter last year. On average, research analysts predict that Cadence Design Systems will post 4.77 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

CDNS has been the subject of several research reports. Needham & Company LLC reiterated a buy rating and issued a $320.00 price target on shares of Cadence Design Systems in a research report on Tuesday. Rosenblatt Securities reiterated a neutral rating and issued a $280.00 price target on shares of Cadence Design Systems in a research report on Monday, April 22nd. StockNews.com downgraded shares of Cadence Design Systems from a buy rating to a hold rating in a research report on Thursday, May 2nd. KeyCorp boosted their price objective on shares of Cadence Design Systems from $350.00 to $355.00 and gave the company an overweight rating in a research note on Thursday, June 27th. Finally, Piper Sandler reissued a neutral rating and issued a $318.00 price objective on shares of Cadence Design Systems in a research note on Wednesday, July 10th. Three investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of Moderate Buy and a consensus target price of $334.56.

Insider Activity at Cadence Design Systems

In related news, SVP Karna Nisewaner sold 600 shares of the stock in a transaction dated Wednesday, May 1st. The shares were sold at an average price of $275.36, for a total value of $165,216.00. Following the sale, the senior vice president now directly owns 20,480 shares of the company’s stock, valued at approximately $5,639,372.80. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. In other Cadence Design Systems news, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the company’s stock in a transaction dated Monday, July 15th. The shares were sold at an average price of $314.57, for a total value of $471,855.00. Following the transaction, the director now directly owns 46,551 shares in the company, valued at approximately $14,643,548.07. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, SVP Karna Nisewaner sold 600 shares of the company’s stock in a transaction dated Wednesday, May 1st. The shares were sold at an average price of $275.36, for a total transaction of $165,216.00. Following the completion of the transaction, the senior vice president now owns 20,480 shares in the company, valued at $5,639,372.80. The disclosure for this sale can be found here. In the last three months, insiders have sold 50,134 shares of company stock valued at $14,987,093. Insiders own 1.99% of the company’s stock.

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.