Cadence Design Systems (NASDAQ:CDNS) Shares Gap Down After Earnings Miss

Cadence Design Systems, Inc. (NASDAQ:CDNS)’s share price gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $300.43, but opened at $285.22. Cadence Design Systems shares last traded at $272.49, with a volume of 853,826 shares traded.

The software maker reported $1.49 EPS for the quarter, missing analysts’ consensus estimates of $1.82 by ($0.33). Cadence Design Systems had a return on equity of 28.49% and a net margin of 23.87%. The company had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.35 billion.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. Bank of America reduced their target price on Cadence Design Systems from $365.00 to $350.00 and set a “buy” rating for the company in a report on Wednesday. Mizuho upped their price target on Cadence Design Systems from $325.00 to $350.00 and gave the company an “outperform” rating in a research report on Friday, December 13th. Piper Sandler upped their price target on Cadence Design Systems from $318.00 to $328.00 and gave the company an “overweight” rating in a research report on Wednesday. StockNews.com lowered Cadence Design Systems from a “buy” rating to a “hold” rating in a research report on Thursday, February 6th. Finally, Robert W. Baird upped their price target on Cadence Design Systems from $332.00 to $340.00 and gave the company an “outperform” rating in a research report on Tuesday, October 29th. One 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 company currently has an average rating of “Moderate Buy” and a consensus price target of $327.33.

Insider Activity at Cadence Design Systems

In other news, CFO John M. Wall sold 4,224 shares of Cadence Design Systems stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $309.03, for a total transaction of $1,305,342.72. Following the sale, the chief financial officer now owns 29,248 shares of the company’s stock, valued at approximately $9,038,509.44. This trade represents a 12.62 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Anirudh Devgan sold 5,920 shares of the business’s stock in a transaction 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 sale, the chief executive officer now owns 55,874 shares of the company’s stock, valued at approximately $16,987,930.96. The trade was a 9.58 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 108,416 shares of company stock valued at $33,538,875. Corporate insiders own 0.62% of the company’s stock.

Institutional Investors Weigh In On Cadence Design Systems

Institutional investors and hedge funds have recently made changes to their positions in the company. Golden State Wealth Management LLC bought a new stake in Cadence Design Systems in the fourth quarter valued at about $28,000. Missouri Trust & Investment Co bought a new stake in Cadence Design Systems in the third quarter valued at about $27,000. MidAtlantic Capital Management Inc. bought a new stake in Cadence Design Systems in the third quarter valued at about $28,000. Ancora Advisors LLC increased its holdings in Cadence Design Systems by 1,400.0% in the fourth quarter. Ancora Advisors LLC now owns 120 shares of the software maker’s stock valued at $36,000 after purchasing an additional 112 shares during the last quarter. Finally, Avalon Trust Co acquired a new position in Cadence Design Systems in the fourth quarter valued at about $39,000. Institutional investors own 84.85% of the company’s stock.

Cadence Design Systems Trading Down 8.8 %

The company has a debt-to-equity ratio of 0.54, a current ratio of 2.45 and a quick ratio of 2.27. The stock has a market capitalization of $75.16 billion, a price-to-earnings ratio of 71.93, a PEG ratio of 3.41 and a beta of 1.03. The business has a 50 day simple moving average of $302.96 and a 200-day simple moving average of $287.16.

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.