Erste Group Bank Has Optimistic View of CDNS FY2027 Earnings

Cadence Design Systems, Inc. (NASDAQ:CDNS) – Erste Group Bank increased their FY2027 earnings per share estimates for Cadence Design Systems in a research report issued on Thursday, June 25th. Erste Group Bank analyst H. Engel now expects that the software maker will post earnings per share of $7.59 for the year, up from their prior estimate of $7.56. The consensus estimate for Cadence Design Systems’ current full-year earnings is $6.23 per share.

CDNS has been the subject of several other research reports. Citigroup upped their target price on shares of Cadence Design Systems from $385.00 to $400.00 and gave the stock a “buy” rating in a research report on Wednesday, April 29th. Berenberg Bank set a $440.00 price target on Cadence Design Systems in a report on Wednesday, May 27th. Wells Fargo & Company boosted their price objective on Cadence Design Systems from $400.00 to $425.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 26th. Robert W. Baird increased their price objective on Cadence Design Systems from $381.00 to $385.00 and gave the stock an “outperform” rating in a report on Tuesday, April 28th. Finally, Piper Sandler raised their target price on Cadence Design Systems from $319.00 to $325.00 and gave the company a “neutral” rating in a research report on Tuesday, April 28th. Fourteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Cadence Design Systems presently has an average rating of “Moderate Buy” and an average price target of $386.59.

Cadence Design Systems Trading Down 1.2%

Shares of NASDAQ:CDNS opened at $372.72 on Tuesday. The company has a market cap of $102.80 billion, a PE ratio of 86.88, a P/E/G ratio of 4.47 and a beta of 1.15. The company’s 50-day moving average price is $365.55 and its 200 day moving average price is $323.53. Cadence Design Systems has a fifty-two week low of $262.75 and a fifty-two week high of $416.69. The company has a quick ratio of 1.32, a current ratio of 1.47 and a debt-to-equity ratio of 0.38.

Cadence Design Systems (NASDAQ:CDNS) last announced its quarterly earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.91 by $0.05. The company had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.46 billion. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The company’s revenue for the quarter was up 18.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.57 earnings per share. Cadence Design Systems has set its FY 2026 guidance at 7.850-7.950 EPS and its Q2 2026 guidance at 2.020-2.080 EPS.

Insider Activity

In related news, VP Paul Cunningham sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $391.00, for a total transaction of $782,000.00. Following the sale, the vice president owned 126,586 shares of the company’s stock, valued at $49,495,126. The trade was a 1.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anirudh Devgan sold 25,005 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $415.00, for a total value of $10,377,075.00. Following the completion of the sale, the chief executive officer owned 253,519 shares of the company’s stock, valued at $105,210,385. This trade represents a 8.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 179,557 shares of company stock valued at $67,205,642 over the last 90 days. Corporate insiders own 0.49% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Brighton Jones LLC boosted its position in shares of Cadence Design Systems by 80.2% during the 4th quarter. Brighton Jones LLC now owns 1,519 shares of the software maker’s stock valued at $456,000 after purchasing an additional 676 shares in the last quarter. Integrated Wealth Concepts LLC raised its holdings in shares of Cadence Design Systems by 3.8% in the 1st quarter. Integrated Wealth Concepts LLC now owns 2,203 shares of the software maker’s stock worth $560,000 after purchasing an additional 80 shares in the last quarter. Thompson Davis & CO. Inc. acquired a new stake in Cadence Design Systems during the second quarter valued at approximately $205,000. NewEdge Advisors LLC lifted its stake in Cadence Design Systems by 39.3% during the second quarter. NewEdge Advisors LLC now owns 34,787 shares of the software maker’s stock valued at $10,720,000 after purchasing an additional 9,807 shares during the last quarter. Finally, Glenview Trust co bought a new stake in Cadence Design Systems during the second quarter worth approximately $226,000. Institutional investors own 84.85% of the company’s stock.

About Cadence Design Systems

Cadence Design Systems, Inc (NASDAQ: CDNS) is a global provider of electronic design automation (EDA) software, hardware and intellectual property used to design and verify advanced semiconductor chips, systems-on-chip (SoCs), printed circuit boards (PCBs) and packaging. Headquartered in San Jose, California and founded in 1988, Cadence serves semiconductor companies, original equipment manufacturers and system designers across the globe, helping customers accelerate design cycles and manage the complexity of modern integrated systems.

The company’s offerings span software tools for digital, custom/analog and mixed-signal design, verification and signoff, as well as solutions for system-level modeling, thermal and signal integrity analysis, and PCB and package design.