Cadence Design stock climbs into record territory after $200 million accelerated buyback agreement

Shares of Cadence Design Systems Inc.
CDNS,
+2.71%
climbed 2.3% into record territory in premarket trading Tueday, after the electronic systems design company announced a $200 million accelerated share repurchase (ASR) agreement. The ASR represents 0.3% of the company’s market capitalization of $63.6 billion as of Monday’s close. Under terms of the ASR agreement, Cadence will receive an initial delivery of 600,000 shares, with the remainder settled in the third quarter of 2023 once the ASR is completed. Based on Monday’s closing stock price of $233.22, the ASR would represent about 857,559 shares. Cadence’s stock, which had closed at a record $234.75 on May 30, has run up 45.2% year to date, while the S&P 500
SPX,
+0.67%
has gained 13.0%.