Erste Group Bank Analysts Boost Earnings Estimates for CDNS

Cadence Design Systems, Inc. (NASDAQ:CDNS) – Research analysts at Erste Group Bank upped their FY2026 earnings estimates for Cadence Design Systems in a report released on Thursday, October 8th. Erste Group Bank analyst H. Engel now forecasts that the software maker will earn $6.40 per share for the year, up from their prior estimate of $6.39. The consensus estimate for Cadence Design Systems’ current full-year earnings is $6.41 per share.

Cadence Design Systems (NASDAQ:CDNS) last released its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, beating the consensus estimate 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 analyst estimates of $1.58 billion. During the same quarter last year, the business earned $1.65 earnings per share. The firm’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.

A number of other research firms have also recently commented on CDNS. BNP Paribas Exane raised their target price on Cadence Design Systems from $400.00 to $450.00 and gave the company an “outperform” rating in a research report on Thursday, June 18th. KeyCorp reaffirmed an “overweight” rating on shares of Cadence Design Systems in a report on Tuesday, July 28th. Rosenblatt Securities upped their price target on Cadence Design Systems from $410.00 to $420.00 and gave the stock a “buy” rating in a report on Tuesday, July 28th. Needham & Company LLC reiterated a “buy” rating and set a $400.00 price target on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Finally, Piper Sandler increased their price target on Cadence Design Systems from $325.00 to $349.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Cadence Design Systems presently has a consensus rating of “Moderate Buy” and a consensus price target of $404.14.

Cadence Design Systems Trading Down 1.4%

CDNS stock opened at $329.46 on Tuesday. The company’s 50-day simple moving average is $319.53 and its 200-day simple moving average is $338.60. 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 has a 52-week low of $262.75 and a 52-week high of $416.69. The firm has a market cap of $90.73 billion, a P/E ratio of 54.25, a PEG ratio of 3.58 and a beta of 1.13.

Institutional Investors Weigh In On Cadence Design Systems

Institutional investors have recently bought and sold shares of the company. J. Stern & Co. LLP grew its holdings in shares of Cadence Design Systems by 10,159.3% during the fourth quarter. J. Stern & Co. LLP now owns 2,953,256 shares of the software maker’s stock worth $923,129,000 after buying an additional 2,924,470 shares in the last quarter. Legal & General Group Plc acquired a new stake in shares of Cadence Design Systems in the second quarter valued at about $702,615,000. Jupiter Topco LLC purchased a new position in shares of Cadence Design Systems in the second quarter worth about $688,746,000. Bank of New York Mellon Corp purchased a new position in shares of Cadence Design Systems in the second quarter worth about $607,350,000. Finally, Deutsche Bank AG purchased a new position in shares of Cadence Design Systems in the second quarter worth about $532,338,000. 84.85% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Cadence Design Systems

In other news, Director Ita Brennan sold 180 shares of Cadence Design Systems stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $285.51, for a total value of $51,391.80. Following the sale, the director owned 7,824 shares in the company, valued at $2,233,830.24. This trade represents a 2.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 280 shares of the business’s stock in a transaction dated 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 directly owned 31,720 shares of the company’s stock, valued at $10,753,080. This represents a 0.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 6,960 shares of company stock worth $2,185,879 in the last ninety days. 0.49% of the stock is owned by company insiders.

Cadence Design Systems Company Profile

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

The company’s offerings include digital and custom/analog integrated-circuit design tools, functional verification and emulation platforms, semiconductor intellectual property, and system analysis solutions.