Cadence Design Systems (NASDAQ:CDNS) Shares Gap Up on Strong Earnings

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $333.76, but opened at $355.00. Cadence Design Systems shares last traded at $366.84, with a volume of 964,354 shares traded.

The software maker reported $1.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.56 by $0.09. The business had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.25 billion. Cadence Design Systems had a return on equity of 29.65% and a net margin of 19.88%. Cadence Design Systems’s quarterly revenue was up 20.2% on a year-over-year basis. During the same period last year, the company earned $1.28 earnings per share.

Analyst Upgrades and Downgrades

Several brokerages recently commented on CDNS. Robert W. Baird increased their price target on Cadence Design Systems from $340.00 to $380.00 and gave the company an “outperform” rating in a research report on Monday. The Goldman Sachs Group initiated coverage on Cadence Design Systems in a research note on Thursday, July 10th. They set a “buy” rating and a $380.00 target price for the company. Piper Sandler reiterated a “neutral” rating and set a $355.00 target price (up from $328.00) on shares of Cadence Design Systems in a research note on Tuesday. Loop Capital lifted their target price on Cadence Design Systems from $370.00 to $390.00 and gave the stock a “buy” rating in a research note on Tuesday. Finally, Bank of America lifted their target price on Cadence Design Systems from $320.00 to $350.00 and gave the stock a “buy” rating in a research note on Tuesday, April 29th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and twelve have given a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $359.00.

Insider Transactions at Cadence Design Systems

In related news, CEO Anirudh Devgan sold 10,737 shares of the stock in a transaction on Friday, May 2nd. The stock was sold at an average price of $310.00, for a total value of $3,328,470.00. Following the transaction, the chief executive officer directly owned 209,548 shares in the company, valued at $64,959,880. This trade represents a 4.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director James D. Plummer sold 868 shares of the stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $319.95, for a total value of $277,716.60. Following the completion of the sale, the director directly owned 23,996 shares of the company’s stock, valued at approximately $7,677,520.20. This trade represents a 3.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 14,435 shares of company stock valued at $4,455,137 in the last 90 days. 1.99% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Cadence Design Systems

Several institutional investors have recently modified their holdings of the business. Vanguard Group Inc. grew its holdings in shares of Cadence Design Systems by 1.7% in the first quarter. Vanguard Group Inc. now owns 26,339,142 shares of the software maker’s stock valued at $6,698,834,000 after acquiring an additional 429,955 shares in the last quarter. Jennison Associates LLC raised its position in shares of Cadence Design Systems by 13.2% in the first quarter. Jennison Associates LLC now owns 9,064,953 shares of the software maker’s stock worth $2,305,489,000 after buying an additional 1,054,702 shares in the last quarter. FMR LLC raised its position in shares of Cadence Design Systems by 8.7% in the fourth quarter. FMR LLC now owns 7,978,652 shares of the software maker’s stock worth $2,397,266,000 after buying an additional 639,146 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Cadence Design Systems by 2.3% in the fourth quarter. Geode Capital Management LLC now owns 6,021,405 shares of the software maker’s stock worth $1,806,019,000 after buying an additional 135,251 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Cadence Design Systems by 7.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,729,026 shares of the software maker’s stock worth $1,202,733,000 after buying an additional 312,757 shares in the last quarter. 84.85% of the stock is owned by institutional investors.

Cadence Design Systems Stock Up 1.3%

The stock has a 50-day simple moving average of $311.64 and a two-hundred day simple moving average of $289.87. The company has a quick ratio of 2.90, a current ratio of 2.82 and a debt-to-equity ratio of 0.49. The firm has a market cap of $101.31 billion, a PE ratio of 100.28, a P/E/G ratio of 5.09 and a beta of 0.99.

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.