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

Cadence Design Systems (NASDAQ:CDNS) issued an update on its third quarter 2024 earnings guidance on Monday morning. The company provided earnings per share guidance of 1.390-1.490 for the period, compared to the consensus earnings per share 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 Trading Down 0.7 %

NASDAQ CDNS traded down $1.76 on Thursday, hitting $264.58. The company’s stock had a trading volume of 256,326 shares, compared to its average volume of 1,594,187. Cadence Design Systems has a 1-year low of $217.77 and a 1-year high of $328.99. The company has a quick ratio of 1.19, a current ratio of 1.32 and a debt-to-equity ratio of 0.08. The company’s 50-day moving average is $302.33 and its 200 day moving average is $298.11. The firm has a market cap of $72.08 billion, a PE ratio of 69.36, a PEG ratio of 3.46 and a beta of 1.03.

Cadence Design Systems (NASDAQ:CDNS) last posted 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. The company had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.04 billion. Cadence Design Systems had a net margin of 25.36% and a return on equity of 31.52%. Cadence Design Systems’s revenue for the quarter was up 8.6% compared to the same quarter last year. During the same period in the prior year, the company posted $0.94 earnings per share. As a group, analysts predict that Cadence Design Systems will post 4.77 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the stock. Piper Sandler reissued a neutral rating and set a $318.00 target price on shares of Cadence Design Systems in a research note on Wednesday, July 10th. StockNews.com downgraded shares of Cadence Design Systems from a buy rating to a hold rating in a report on Thursday, May 2nd. Bank of America raised their price objective on shares of Cadence Design Systems from $330.00 to $350.00 and gave the stock a buy rating in a report on Thursday, May 30th. Rosenblatt Securities restated a neutral rating and set a $280.00 price objective on shares of Cadence Design Systems in a report on Monday, April 22nd. Finally, Robert W. Baird decreased their price objective on shares of Cadence Design Systems from $341.00 to $338.00 and set an outperform rating for the company in a report on Tuesday. Three investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of Moderate Buy and a consensus price target of $334.56.

Insiders Place Their Bets

In related news, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the stock in a transaction dated Wednesday, May 15th. The shares were sold at an average price of $287.14, for a total value of $430,710.00. Following the completion of the transaction, the director now directly owns 49,551 shares in the company, valued at approximately $14,228,074.14. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In related news, VP Paul Cunningham sold 1,000 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 transaction of $275,360.00. Following the sale, the vice president now directly owns 67,144 shares of the company’s stock, valued at approximately $18,488,771.84. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the stock in a transaction dated Wednesday, May 15th. The shares were sold at an average price of $287.14, for a total transaction of $430,710.00. Following the sale, the director now directly owns 49,551 shares in the company, valued at $14,228,074.14. The disclosure for this sale can be found here. In the last ninety days, insiders sold 50,134 shares of company stock worth $14,987,093. 1.99% of the stock is currently owned by corporate 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.