Cadence Design Systems (NASDAQ:CDNS) Trading Up 3.5% Following Earnings Beat

Cadence Design Systems, Inc. (NASDAQ:CDNS) rose 3.5% during trading on Tuesday following a stronger than expected earnings report. The company traded as high as $298.93 and last traded at $295.84. Approximately 449,095 shares traded hands during trading, a decline of 77% from the average daily volume of 1,932,176 shares. The stock had previously closed at $285.74.

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on CDNS shares. Redburn Atlantic started coverage on Cadence Design Systems in a report on Monday, January 13th. They issued a “buy” rating and a $350.00 price target for the company. StockNews.com downgraded Cadence Design Systems from a “buy” rating to a “hold” rating in a report on Thursday, February 6th. Robert W. Baird boosted their price target on Cadence Design Systems from $293.00 to $325.00 and gave the company an “outperform” rating in a report on Tuesday. Needham & Company LLC reiterated a “buy” rating and issued a $325.00 price target on shares of Cadence Design Systems in a report on Tuesday. Finally, JPMorgan Chase & Co. upgraded Cadence Design Systems from a “neutral” rating to an “overweight” rating and boosted their price target for the company from $300.00 to $325.00 in a report on Thursday, April 24th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and eleven have assigned a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $322.54.

Insider Buying and Selling

In other Cadence Design Systems news, Director Ita M. Brennan sold 180 shares of the business’s stock in a transaction on Thursday, April 24th. The stock was sold at an average price of $275.00, for a total transaction of $49,500.00. Following the completion of the transaction, the director now owns 7,411 shares in the company, valued at approximately $2,038,025. The trade was a 2.37 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Paul Cunningham sold 650 shares of the business’s stock in a transaction on Monday, February 3rd. The stock was sold at an average price of $292.32, for a total value of $190,008.00. Following the transaction, the vice president now owns 58,773 shares of the company’s stock, valued at $17,180,523.36. This trade represents a 1.09 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 2,130 shares of company stock worth $567,999 in the last three months. 1.99% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in CDNS. Smallwood Wealth Investment Management LLC acquired a new position in Cadence Design Systems during the 1st quarter worth $25,000. Golden State Wealth Management LLC acquired a new stake in shares of Cadence Design Systems in the fourth quarter valued at $28,000. Valley National Advisers Inc. lifted its holdings in shares of Cadence Design Systems by 707.1% in the first quarter. Valley National Advisers Inc. now owns 113 shares of the software maker’s stock valued at $28,000 after buying an additional 99 shares during the period. Ancora Advisors LLC lifted its holdings in shares of Cadence Design Systems by 1,400.0% in the fourth quarter. Ancora Advisors LLC now owns 120 shares of the software maker’s stock valued at $36,000 after buying an additional 112 shares during the period. Finally, Avalon Trust Co acquired a new stake in shares of Cadence Design Systems in the fourth quarter valued at $39,000. Institutional investors and hedge funds own 84.85% of the company’s stock.

Cadence Design Systems Stock Performance

The company has a debt-to-equity ratio of 0.53, a current ratio of 2.93 and a quick ratio of 2.27. The firm has a market cap of $81.67 billion, a price-to-earnings ratio of 77.13, a price-to-earnings-growth ratio of 3.88 and a beta of 1.14. The company has a fifty day moving average price of $256.20 and a two-hundred day moving average price of $282.41.

Cadence Design Systems Company Profile

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.