Cadence Design Systems (NASDAQ:CDNS) Stock Jumps 7.4% – Here’s Why

Cadence Design Systems, Inc. (NASDAQ:CDNS) traded up 7.4% during mid-day trading on Thursday. The company traded as high as $349.77 and last traded at $354.6320. Approximately 291,709 shares changed hands during mid-day trading, a decline of 88% from the average daily volume of 2,457,548 shares. The stock had previously closed at $330.18.

Analyst Ratings Changes

Several research firms have recently weighed in on CDNS. Rosenblatt Securities increased their price objective on shares of Cadence Design Systems from $410.00 to $420.00 and gave the stock a “buy” rating in a research report on Tuesday, July 28th. Robert W. Baird upped their price target on shares of Cadence Design Systems from $415.00 to $420.00 and gave the company an “outperform” rating in a research report on Tuesday, July 28th. KeyCorp restated an “overweight” rating on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Stifel Nicolaus lifted their target price on Cadence Design Systems from $395.00 to $432.00 and gave the stock a “buy” rating in a report on Tuesday, June 9th. Finally, Weiss Ratings lowered Cadence Design Systems from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, September 25th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Cadence Design Systems presently has an average rating of “Moderate Buy” and a consensus price target of $403.88.

Cadence Design Systems Stock Performance

The company has a market capitalization of $94.65 billion, a price-to-earnings ratio of 68.39, a P/E/G ratio of 3.48 and a beta of 1.14. The company has a 50 day moving average price of $317.03 and a 200 day moving average price of $334.29. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.53 and a current ratio of 1.74.

Cadence Design Systems (NASDAQ:CDNS) last announced its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, topping 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 business had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.58 billion. During the same quarter in the prior year, the company earned $1.65 earnings per share. The company’s quarterly 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. Equities research analysts predict that Cadence Design Systems, Inc. will post 6.4 earnings per share for the current fiscal year.

Insider Buying and Selling at Cadence Design Systems

In related news, VP Paul Scannell sold 280 shares of Cadence Design Systems stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $339.00, for a total value of $94,920.00. Following the completion of the sale, the vice president owned 31,720 shares of the company’s stock, valued at approximately $10,753,080. This trade represents a 0.88% decrease in their position. The transaction was disclosed in a document filed 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 Cunningham sold 2,000 shares of the company’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $277.12, for a total transaction of $554,240.00. Following the transaction, the vice president owned 121,793 shares in the company, valued at approximately $33,751,276.16. The trade was a 1.62% 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. In the last quarter, insiders sold 5,710 shares of company stock worth $1,748,292. 0.49% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cadence Design Systems

Large investors have recently added to or reduced their stakes in the business. QRG Capital Management Inc. increased its holdings in Cadence Design Systems by 38.7% during the 2nd quarter. QRG Capital Management Inc. now owns 93,049 shares of the software maker’s stock worth $34,923,000 after purchasing an additional 25,944 shares in the last quarter. Envestnet Portfolio Solutions Inc. boosted its position in shares of Cadence Design Systems by 74.8% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 21,069 shares of the software maker’s stock valued at $7,908,000 after buying an additional 9,016 shares during the last quarter. Anchor Investment Management LLC grew its holdings in Cadence Design Systems by 117.2% during the second quarter. Anchor Investment Management LLC now owns 291 shares of the software maker’s stock worth $109,000 after buying an additional 157 shares in the last quarter. Sequoia Financial Advisors LLC raised its position in Cadence Design Systems by 58.2% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 16,776 shares of the software maker’s stock valued at $6,296,000 after buying an additional 6,169 shares during the last quarter. Finally, IPG Investment Advisors LLC bought a new position in Cadence Design Systems during the 2nd quarter valued at $1,902,000. Institutional investors own 84.85% of the company’s stock.

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.