Cadence Design Systems (NASDAQ:CDNS) Updates Q2 Earnings Guidance

Cadence Design Systems (NASDAQ:CDNS) issued an update on its second quarter earnings guidance on Monday morning. The company provided earnings per share (EPS) guidance of $1.20-$1.24 for the period, compared to the consensus estimate of $1.43. The company issued revenue guidance of $1.03-$1.05 billion, compared to the consensus revenue estimate of $1.11 billion. Cadence Design Systems also updated its FY 2024 guidance to 5.880-5.980 EPS.

Cadence Design Systems Trading Down 0.2 %

CDNS stock traded down $0.58 during midday trading on Thursday, reaching $277.08. 2,044,148 shares of the company traded hands, compared to its average volume of 1,572,117. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.13 and a current ratio of 1.32. The business has a 50 day moving average of $304.38 and a 200-day moving average of $280.97. Cadence Design Systems has a 52-week low of $198.92 and a 52-week high of $327.36. The firm has a market capitalization of $75.43 billion, a price-to-earnings ratio of 72.31, a P/E/G ratio of 3.43 and a beta of 1.04.

Cadence Design Systems (NASDAQ:CDNS) last issued its quarterly earnings results on Monday, April 22nd. The software maker reported $1.17 earnings per share for the quarter, topping the consensus estimate of $1.13 by $0.04. Cadence Design Systems had a return on equity of 32.44% and a net margin of 25.68%. The firm had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $1 billion. During the same period in the prior year, the business posted $1.02 earnings per share. The company’s revenue for the quarter was down 1.2% on a year-over-year basis. As a group, sell-side analysts expect that Cadence Design Systems will post 4.81 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on CDNS shares. Needham & Company LLC reissued a buy rating and issued a $320.00 price objective on shares of Cadence Design Systems in a research note on Friday, April 19th. Wells Fargo & Company increased their price objective on Cadence Design Systems from $330.00 to $350.00 and gave the stock an overweight rating in a research note on Tuesday, April 16th. Robert W. Baird increased their target price on Cadence Design Systems from $302.00 to $322.00 and gave the company an outperform rating in a research report on Thursday, April 18th. Stifel Nicolaus increased their target price on Cadence Design Systems from $300.00 to $350.00 and gave the company a buy rating in a research report on Tuesday, February 13th. Finally, StockNews.com raised Cadence Design Systems from a hold rating to a buy rating in a research report on Wednesday. Two analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. According to data from MarketBeat, Cadence Design Systems has a consensus rating of Moderate Buy and an average price target of $316.50.

Insider Activity

In other news, SVP Karna Nisewaner sold 600 shares of the stock in a transaction on Monday, April 1st. The stock was sold at an average price of $310.46, for a total transaction of $186,276.00. Following the completion of the sale, the senior vice president now owns 21,080 shares in the company, valued at approximately $6,544,496.80. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. In related news, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the firm’s stock in a transaction on Tuesday, February 6th. The stock was sold at an average price of $299.42, for a total value of $449,130.00. Following the completion of the transaction, the director now owns 53,183 shares in the company, valued at approximately $15,924,053.86. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Karna Nisewaner sold 600 shares of Cadence Design Systems stock in a transaction dated Monday, April 1st. The shares were sold at an average price of $310.46, for a total value of $186,276.00. Following the transaction, the senior vice president now owns 21,080 shares of the company’s stock, valued at approximately $6,544,496.80. The disclosure for this sale can be found here. In the last quarter, insiders sold 173,044 shares of company stock worth $52,231,207. 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.