Cadence Design Systems (NASDAQ:CDNS) Raised to “Buy” at Wall Street Zen

Cadence Design Systems (NASDAQ:CDNS) was upgraded by research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a note issued to investors on Saturday, Wall Street Zen reports.

A number of other analysts have also issued reports on CDNS. Oppenheimer reiterated a “market perform” rating and set a $300.00 price target on shares of Cadence Design Systems in a research note on Tuesday, July 28th. Morgan Stanley reissued an “overweight” rating and issued a $400.00 price objective on shares of Cadence Design Systems in a research note on Wednesday, July 29th. FBN Securities began coverage on shares of Cadence Design Systems in a report on Friday, September 11th. They issued an “outperform” rating and a $375.00 price objective for the company. Citigroup upped their target price on shares of Cadence Design Systems from $400.00 to $420.00 and gave the stock a “buy” rating in a research note on Tuesday, July 28th. Finally, Stifel Nicolaus increased their target price on shares of Cadence Design Systems from $395.00 to $432.00 and gave the stock a “buy” rating in a report on Tuesday, June 9th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $403.88.

Cadence Design Systems Stock Performance

CDNS opened at $326.13 on Friday. Cadence Design Systems has a 52 week low of $262.75 and a 52 week high of $416.69. The business has a fifty day simple moving average of $317.64 and a 200-day simple moving average of $333.57. The firm has a market cap of $89.81 billion, a P/E ratio of 64.84, a P/E/G ratio of 3.50 and a beta of 1.14. The company has a quick ratio of 1.53, a current ratio of 1.74 and a debt-to-equity ratio of 0.36.

Cadence Design Systems (NASDAQ:CDNS) last posted its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.06. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%.The firm had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.58 billion. During the same quarter in the previous year, the business earned $1.65 EPS. The company’s quarterly revenue was up 24.2% compared to the same quarter last year. 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. On average, equities analysts expect that Cadence Design Systems will post 6.4 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Ita Brennan sold 180 shares of the business’s stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $285.51, for a total transaction of $51,391.80. Following the completion of the transaction, the director directly owned 7,824 shares of the company’s stock, valued at approximately $2,233,830.24. The trade was a 2.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 280 shares of the company’s stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $339.00, for a total transaction of $94,920.00. Following the sale, the vice president owned 31,720 shares in the company, valued at $10,753,080. The trade was a 0.88% 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. Over the last quarter, insiders have sold 5,710 shares of company stock worth $1,748,292. 0.49% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cadence Design Systems

A number of large investors have recently modified their holdings of CDNS. Whipplewood Advisors LLC boosted its position in shares of Cadence Design Systems by 933.3% during the 1st quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker’s stock worth $26,000 after acquiring an additional 84 shares in the last quarter. Brown Lisle Cummings Inc. increased its holdings in shares of Cadence Design Systems by 860.0% in the 1st quarter. Brown Lisle Cummings Inc. now owns 96 shares of the software maker’s stock valued at $27,000 after acquiring an additional 86 shares during the last quarter. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Cadence Design Systems during the 4th quarter worth about $28,000. Avalon Trust Co acquired a new stake in shares of Cadence Design Systems during the 2nd quarter worth about $30,000. Finally, Fiduciary Financial Advisors purchased a new stake in Cadence Design Systems during the second quarter worth approximately $31,000. 84.85% of the stock is owned by hedge funds and other institutional investors.

About Cadence Design Systems

Cadence Design Systems, Inc is a technology company that develops electronic design automation (EDA) software, hardware and semiconductor intellectual property (IP). Its products help engineers design, verify and analyze integrated circuits, printed circuit boards and complete electronic systems.

The company offers solutions spanning digital and custom IC design, functional verification, digital and analog simulation, emulation and prototyping, system analysis, and 3D computational fluid dynamics.