Cadence Design Systems, Inc. (NASDAQ:CDNS) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Cadence Design Systems, Inc. (NASDAQ:CDNS) has been given a consensus recommendation of “Moderate Buy” by the sixteen analysts that are presently covering the firm, MarketBeat.com reports. Three research analysts have rated the stock with a hold recommendation and thirteen have issued a buy recommendation on the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $405.6875.

Several brokerages have recently issued reports on CDNS. Wells Fargo & Company upped their target price on shares of Cadence Design Systems from $400.00 to $425.00 and gave the company an “overweight” rating in a research report on Tuesday, May 26th. Needham & Company LLC reiterated a “buy” rating and issued a $400.00 price target on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Rosenblatt Securities boosted their price objective on Cadence Design Systems from $410.00 to $420.00 and gave the stock a “buy” rating in a research note on Tuesday, July 28th. Citigroup raised their price objective on Cadence Design Systems from $400.00 to $420.00 and gave the company a “buy” rating in a research note on Tuesday, July 28th. Finally, Benchmark reiterated a “buy” rating on shares of Cadence Design Systems in a report on Tuesday, July 28th.

Insider Buying and Selling

In other news, Director Ita M. Brennan sold 180 shares of the stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $387.45, for a total value of $69,741.00. Following the sale, the director owned 8,004 shares of the company’s stock, valued at approximately $3,101,149.80. This represents a 2.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 7,081 shares of the firm’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $393.91, for a total transaction of $2,789,276.71. Following the completion of the sale, the vice president owned 32,181 shares of the company’s stock, valued at $12,676,417.71. This trade represents a 18.04% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 140,557 shares of company stock valued at $54,631,737 over the last 90 days. 0.49% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cadence Design Systems

Hedge funds have recently added to or reduced their stakes in the company. Whipplewood Advisors LLC lifted its stake in Cadence Design Systems by 933.3% in the first quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker’s stock worth $26,000 after purchasing an additional 84 shares during the last quarter. Brown Lisle Cummings Inc. boosted its position in shares of Cadence Design Systems by 860.0% during the first quarter. Brown Lisle Cummings Inc. now owns 96 shares of the software maker’s stock valued at $27,000 after buying an additional 86 shares during the period. University of Texas Texas AM Investment Management Co. bought a new position in shares of Cadence Design Systems during the fourth quarter valued at approximately $28,000. Swiss RE Ltd. bought a new position in shares of Cadence Design Systems during the fourth quarter valued at approximately $29,000. Finally, Imprint Wealth LLC purchased a new stake in shares of Cadence Design Systems in the third quarter worth approximately $31,000. 84.85% of the stock is currently owned by institutional investors.

Cadence Design Systems Trading Down 1.0%

CDNS stock opened at $337.07 on Thursday. The firm has a fifty day moving average price of $370.06 and a 200 day moving average price of $330.45. 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 debt-to-equity ratio of 0.36, a quick ratio of 1.53 and a current ratio of 1.74. The firm has a market cap of $92.83 billion, a PE ratio of 67.01, a price-to-earnings-growth ratio of 3.65 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS) last released its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.05 by $0.06. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The company had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.58 billion. During the same quarter in the prior year, the firm earned $1.65 earnings per share. Cadence Design Systems’s revenue was up 24.2% on a year-over-year basis. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS. Sell-side analysts anticipate that Cadence Design Systems will post 6.4 earnings per share for the current fiscal year.

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.