Cadence Design Systems (NASDAQ:CDNS) Shares Gap Up on Better-Than-Expected Earnings

Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $252.77, but opened at $274.94. Cadence Design Systems shares last traded at $276.25, with a volume of 1,516,564 shares traded.

The software maker reported $1.64 EPS for the quarter, beating analysts' consensus estimates of $1.44 by $0.20. Cadence Design Systems had a return on equity of 29.54% and a net margin of 25.36%. The company had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.18 billion. During the same period last year, the business posted $1.01 earnings per share. Cadence Design Systems's revenue was up 18.8% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the stock. Robert W. Baird raised their price objective on shares of Cadence Design Systems from $332.00 to $340.00 and gave the stock an "outperform" rating in a report on Tuesday. Berenberg Bank started coverage on shares of Cadence Design Systems in a research note on Tuesday, October 15th. They set a "buy" rating and a $320.00 price target for the company. Oppenheimer initiated coverage on Cadence Design Systems in a research note on Wednesday, September 25th. They issued an "underperform" rating and a $225.00 price objective on the stock. Needham & Company LLC lowered their target price on Cadence Design Systems from $320.00 to $315.00 and set a "buy" rating on the stock in a research note on Tuesday. Finally, Rosenblatt Securities reiterated a "neutral" rating and set a $280.00 price target on shares of Cadence Design Systems in a research note on Tuesday. 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 company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $323.17.

Insider Activity

In related news, CFO John M. Wall sold 10,000 shares of the business's stock in a transaction that occurred on Wednesday, August 28th. The stock was sold at an average price of $265.91, for a total value of $2,659,100.00. Following the completion of the sale, the chief financial officer now owns 38,654 shares in the company, valued at $10,278,485.14. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. In other Cadence Design Systems news, CFO John M. Wall sold 10,000 shares of the company's stock in a transaction dated Wednesday, August 28th. The shares were sold at an average price of $265.91, for a total transaction of $2,659,100.00. Following the completion of the sale, the chief financial officer now directly owns 38,654 shares in the company, valued at $10,278,485.14. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, VP Paul Cunningham sold 650 shares of Cadence Design Systems stock in a transaction dated Thursday, August 1st. The stock was sold at an average price of $266.24, for a total value of $173,056.00. Following the completion of the transaction, the vice president now owns 65,194 shares in the company, valued at approximately $17,357,250.56. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 28,347 shares of company stock worth $7,728,272. 1.99% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Cadence Design Systems

Several institutional investors have recently added to or reduced their stakes in CDNS. Empowered Funds LLC increased its holdings in Cadence Design Systems by 223.8% during the 1st quarter. Empowered Funds LLC now owns 9,181 shares of the software maker's stock valued at $2,858,000 after purchasing an additional 6,346 shares during the period. Norden Group LLC raised its holdings in shares of Cadence Design Systems by 1,659.3% during the first quarter. Norden Group LLC now owns 13,300 shares of the software maker's stock valued at $4,140,000 after acquiring an additional 12,544 shares in the last quarter. BNP Paribas Financial Markets lifted its stake in Cadence Design Systems by 58.1% in the first quarter. BNP Paribas Financial Markets now owns 1,273,678 shares of the software maker's stock worth $396,470,000 after acquiring an additional 468,195 shares during the period. Park National Corp OH boosted its holdings in Cadence Design Systems by 19.8% in the second quarter. Park National Corp OH now owns 136,251 shares of the software maker's stock valued at $41,931,000 after acquiring an additional 22,537 shares in the last quarter. Finally, Teamwork Financial Advisors LLC increased its position in Cadence Design Systems by 40.0% during the 1st quarter. Teamwork Financial Advisors LLC now owns 35,151 shares of the software maker's stock valued at $10,942,000 after purchasing an additional 10,037 shares during the period. Hedge funds and other institutional investors own 84.85% of the company's stock.

Cadence Design Systems Stock Up 12.5 %

The company's fifty day simple moving average is $266.90 and its 200 day simple moving average is $281.98. The company has a current ratio of 1.43, a quick ratio of 1.32 and a debt-to-equity ratio of 0.23. The firm has a market capitalization of $77.49 billion, a P/E ratio of 74.08, a price-to-earnings-growth ratio of 3.03 and a beta of 1.02.

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.