Cadence Design Systems, Inc. (NASDAQ:CDNS) Stock Rated “Moderate Buy” by Wall Street Analysts

Cadence Design Systems, Inc. (NASDAQ:CDNS) has received a consensus recommendation of “Moderate Buy” from the twenty-two brokerages that are presently covering the firm, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a hold recommendation, eighteen have given a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $404.14.

Several research analysts recently issued reports on the company. Bank of America increased their price objective on Cadence Design Systems from $400.00 to $420.00 and gave the stock a “buy” rating in a research note on Tuesday, July 28th. Rosenblatt Securities lifted their target price on Cadence Design Systems from $410.00 to $420.00 and gave the company a “buy” rating in a research report on Tuesday, July 28th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $420.00 target price (up from $400.00) on shares of Cadence Design Systems in a research report on Wednesday, October 7th. Citigroup upped their target price on Cadence Design Systems from $400.00 to $420.00 and gave the stock a “buy” rating in a report on Tuesday, July 28th. Finally, Morgan Stanley reiterated an “overweight” rating and issued a $400.00 target price (up from $370.00) on shares of Cadence Design Systems in a report on Wednesday, July 29th.

Cadence Design Systems Price Performance

Shares of CDNS stock opened at $325.86 on Tuesday. The company has a market capitalization of $89.74 billion, a P/E ratio of 64.78, a P/E/G ratio of 3.42 and a beta of 1.13. The company’s 50-day simple moving average is $318.73 and its two-hundred day simple moving average is $339.65. Cadence Design Systems has a one year low of $262.75 and a one year high of $416.69. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.53.

Cadence Design Systems (NASDAQ:CDNS) last posted its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share 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 firm had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.58 billion. During the same quarter in the previous year, the firm posted $1.65 earnings per share. The company’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. As a group, equities analysts anticipate that Cadence Design Systems will post 6.41 EPS for the current year.

Insider Transactions at Cadence Design Systems

In other news, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the firm’s stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $350.07, for a total transaction of $437,587.50. Following the transaction, the director owned 39,544 shares in the company, valued at approximately $13,843,168.08. This trade represents a 3.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 2,000 shares of Cadence Design Systems stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $277.12, for a total value of $554,240.00. Following the completion of the sale, the vice president owned 121,793 shares of the company’s stock, valued at $33,751,276.16. The trade was a 1.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 8,960 shares of company stock worth $2,834,139. Corporate insiders own 0.49% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CDNS. George Kaiser Family Foundation purchased a new stake in shares of Cadence Design Systems in the 2nd quarter worth approximately $725,000. Vega Investment Solutions bought a new position in shares of Cadence Design Systems during the second quarter valued at approximately $1,957,000. MassMutual Private Wealth & Trust FSB increased its holdings in Cadence Design Systems by 65.7% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 26,160 shares of the software maker’s stock valued at $8,638,000 after buying an additional 10,376 shares during the period. Osmosis Investment Management UK Ltd purchased a new position in Cadence Design Systems during the second quarter valued at approximately $5,238,000. Finally, Lombard Odier Asset Management Europe Ltd increased its holdings in Cadence Design Systems by 30.9% during the first quarter. Lombard Odier Asset Management Europe Ltd now owns 52,941 shares of the software maker’s stock valued at $14,711,000 after buying an additional 12,495 shares during the period. 84.85% of the stock is currently owned by institutional investors.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc develops computational software, hardware, and semiconductor intellectual property used to design and verify electronic systems and integrated circuits. Its electronic design automation (EDA) solutions support chip development across areas such as digital and custom IC design, functional verification, emulation, prototyping, and system analysis.

The company also provides semiconductor IP, including processor cores, interconnect technologies, memory interfaces, and other building blocks that help customers develop complex chips.