Is it time to Buy before this week’s earning report Cadence Design Systems (NASDAQ:CDNS)

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Earnings results for Cadence Design Systems (NASDAQ:CDNS)

Cadence Design Systems, Inc. is expected* to report earnings on 10/19/2020 after market close. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 2 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.5. The reported EPS for the same quarter last year was $0.36.

Cadence Design Systems last released its earnings results on July 20th, 2020. The software maker reported $0.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.52 by $0.14. The company had revenue of $638.42 million for the quarter, compared to the consensus estimate of $591.09 million. Its revenue was up 10.0% on a year-over-year basis. Cadence Design Systems has generated $3.53 earnings per share over the last year and currently has a price-to-earnings ratio of 31.9. Cadence Design Systems has confirmed that its next quarterly earnings report will be published on Monday, October 19th, 2020.

Analyst Opinion on Cadence Design Systems (NASDAQ:CDNS)

10 Wall Street analysts have issued ratings and price targets for Cadence Design Systems in the last 12 months. Their average twelve-month price target is $109.90, predicting that the stock has a possible downside of 5.00%. The high price target for CDNS is $128.00 and the low price target for CDNS is $80.00. There are currently 2 hold ratings and 8 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Cadence Design Systems has received a consensus rating of Buy. The company’s average rating score is 2.80, and is based on 8 buy ratings, 2 hold ratings, and no sell ratings. According to analysts’ consensus price target of $109.90, Cadence Design Systems has a forecasted downside of 5.0% from its current price of $115.69. Cadence Design Systems has been the subject of 6 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Cadence Design Systems (NASDAQ:CDNS)

Cadence Design Systems does not currently pay a dividend. Cadence Design Systems does not have a long track record of dividend growth.

Insiders buying/selling: Cadence Design Systems (NASDAQ:CDNS)

In the past three months, Cadence Design Systems insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $15,402,667.00 in company stock. Only 2.58% of the stock of Cadence Design Systems is held by insiders. 86.11% of the stock of Cadence Design Systems is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Cadence Design Systems (NASDAQ:CDNS

Earnings for Cadence Design Systems are expected to decrease by -0.53% in the coming year, from $1.88 to $1.87 per share. The P/E ratio of Cadence Design Systems is 31.87, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.76. The P/E ratio of Cadence Design Systems is 31.87, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 66.00. Cadence Design Systems has a PEG Ratio of 4.47. PEG Ratios above 1 indicate that a company could be overvalued. Cadence Design Systems has a P/B Ratio of 15.40. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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