Cadence Design Systems (NASDAQ:CDNS) Posts Quarterly Earnings Results, Misses Estimates By $0.33 EPS

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) posted its quarterly earnings data on Tuesday. The software maker reported $1.49 EPS for the quarter, missing the consensus estimate of $1.82 by ($0.33), Zacks reports. Cadence Design Systems had a net margin of 22.74% and a return on equity of 29.24%. The firm had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.35 billion. Cadence Design Systems updated its Q1 2025 guidance to 1.460-1.520 EPS and its FY 2025 guidance to 6.650-6.750 EPS.

Cadence Design Systems Trading Down 4.4 %

Shares of NASDAQ CDNS traded down $11.96 during mid-day trading on Friday, reaching $258.27. 4,553,254 shares of the company's stock were exchanged, compared to its average volume of 1,870,280. The company's 50-day moving average is $301.51 and its 200-day moving average is $286.95. Cadence Design Systems has a 52-week low of $241.29 and a 52-week high of $328.99. The firm has a market capitalization of $70.83 billion, a price-to-earnings ratio of 66.91, a PEG ratio of 3.17 and a beta of 1.03. The company has a debt-to-equity ratio of 0.53, a quick ratio of 2.27 and a current ratio of 2.93.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on CDNS. Rosenblatt Securities raised their target price on Cadence Design Systems from $280.00 to $295.00 and gave the stock a "neutral" rating in a research note on Wednesday. Robert W. Baird cut their target price on Cadence Design Systems from $340.00 to $335.00 and set an "outperform" rating for the company in a research note on Thursday. Loop Capital cut their target price on Cadence Design Systems from $360.00 to $340.00 and set a "buy" rating for the company in a research note on Wednesday. Piper Sandler raised their target price on Cadence Design Systems from $318.00 to $328.00 and gave the stock an "overweight" rating in a research note on Wednesday. Finally, Bank of America cut their target price on Cadence Design Systems from $365.00 to $350.00 and set a "buy" rating for the company in a research note on Wednesday. One research analyst has rated the stock with a sell rating, two have issued a hold rating and ten have given a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $326.92.

Insider Activity at Cadence Design Systems

In related news, VP Paul Cunningham sold 650 shares of the firm's stock in a transaction dated Monday, February 3rd. The stock was sold at an average price of $292.32, for a total transaction of $190,008.00. Following the completion of the transaction, the vice president now directly owns 58,773 shares in the company, valued at $17,180,523.36. This trade represents a 1.09 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Anirudh Devgan sold 93,151 shares of the firm's stock in a transaction dated Monday, January 6th. The shares were sold at an average price of $310.00, for a total value of $28,876,810.00. Following the transaction, the chief executive officer now owns 55,874 shares of the company's stock, valued at $17,320,940. This trade represents a 62.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 108,416 shares of company stock worth $33,538,875 in the last three months. 1.99% of the stock is owned by company 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.