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

Cadence Design Systems (NASDAQ:CDNS) released its quarterly earnings results 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 30.20%. The company had revenue of $1.36 billion for the quarter, compared to the consensus estimate 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 Price Performance

Shares of CDNS opened at $274.45 on Thursday. The company has a debt-to-equity ratio of 0.54, a quick ratio of 2.27 and a current ratio of 2.45. The stock has a 50 day simple moving average of $302.27 and a 200 day simple moving average of $287.07. 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 $75.27 billion, a PE ratio of 71.82, a P/E/G ratio of 3.48 and a beta of 1.03.

Insider Activity at Cadence Design Systems

In related news, CEO Anirudh Devgan sold 5,920 shares of the business’s stock in a transaction that occurred on Thursday, January 2nd. The stock was sold at an average price of $304.04, for a total value of $1,799,916.80. Following the completion of the transaction, the chief executive officer now directly owns 55,874 shares in the company, valued at approximately $16,987,930.96. The trade was a 9.58 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO John M. Wall sold 4,224 shares of the business’s stock in a transaction that occurred on Wednesday, December 18th. The shares were sold at an average price of $309.03, for a total value of $1,305,342.72. Following the completion of the transaction, the chief financial officer now owns 29,248 shares of the company’s stock, valued at $9,038,509.44. This represents a 12.62 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 108,416 shares of company stock worth $33,538,875. 1.99% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several analysts have recently commented on CDNS shares. Bank of America decreased their price target on shares of Cadence Design Systems from $365.00 to $350.00 and set a “buy” rating on the stock in a research note on Wednesday. Robert W. Baird decreased their price target on shares of Cadence Design Systems from $340.00 to $335.00 and set an “outperform” rating on the stock in a research note on Thursday. Redburn Atlantic started coverage on shares of Cadence Design Systems in a research note on Monday, January 13th. They set a “buy” rating and a $350.00 price target on the stock. Loop Capital decreased their price target on shares of Cadence Design Systems from $360.00 to $340.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, StockNews.com cut shares of Cadence Design Systems from a “buy” rating to a “hold” rating in a research note on Thursday, February 6th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and ten have issued a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $326.92.

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.