Cadence Design Systems (NASDAQ:CDNS) Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Cadence Design Systems to “hold” from “buy,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $403.88.
• Cadence reported quarterly adjusted earnings of $2.11 per share, exceeding estimates by $0.06, while revenue rose 24.2% year over year to $1.58 billion.
• The stock was trading at $289.37, below its 50-day and 200-day moving averages, while insiders sold $1.92 million of shares over the past 90 days; institutional investors own 84.85% of the company.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday, Wall Street Zen reports.

A number of other equities analysts have also commented on CDNS. Rosenblatt Securities increased their price target on Cadence Design Systems from $410.00 to $420.00 and gave the company a "buy" rating in a research note on Tuesday, July 28th. Weiss Ratings upgraded Cadence Design Systems from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, July 30th. Piper Sandler raised their target price on shares of Cadence Design Systems from $325.00 to $349.00 and gave the company a "neutral" rating in a report on Tuesday, July 28th. Benchmark restated a "buy" rating on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Finally, Berenberg Bank set a $440.00 price objective on shares of Cadence Design Systems in a research report on Wednesday, May 27th. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $403.88.

Cadence Design Systems Trading Up 1.6%

Cadence Design Systems stock opened at $289.37 on Friday. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.53. The firm's 50 day moving average price is $332.84 and its 200-day moving average price is $333.50. Cadence Design Systems has a 1 year low of $262.75 and a 1 year high of $416.69. The stock has a market cap of $79.69 billion, a P/E ratio of 57.53, a PEG ratio of 3.06 and a beta of 1.14.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its 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. The company had revenue of $1.58 billion during the quarter, compared to analysts' expectations of $1.58 billion. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. Cadence Design Systems's quarterly revenue was up 24.2% on a year-over-year basis. During the same period last year, the company posted $1.65 earnings per share. 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 predict that Cadence Design Systems will post 6.4 earnings per share for the current fiscal year.

Insider Activity

In related news, VP Paul Scannell sold 280 shares of the business's stock in a transaction that occurred 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 transaction, the vice president owned 31,720 shares of the company's stock, valued at $10,753,080. The trade was a 0.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $320.88, for a total transaction of $401,100.00. Following the transaction, the director owned 40,794 shares of the company's stock, valued at approximately $13,089,978.72. This trade represents a 2.97% 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 90 days, insiders have sold 5,530 shares of company stock valued at $1,924,660. 0.49% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cadence Design Systems

A number of large investors have recently made changes to their positions in the business. Sequoia Financial Advisors LLC boosted its position in shares of 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 worth $6,296,000 after purchasing an additional 6,169 shares in the last quarter. IPG Investment Advisors LLC purchased a new stake in Cadence Design Systems in the second quarter valued at about $1,902,000. National Pension Service raised its stake in Cadence Design Systems by 0.9% in the second quarter. National Pension Service now owns 760,715 shares of the software maker's stock valued at $285,512,000 after buying an additional 6,755 shares during the last quarter. Pinnacle Wealth Management Advisory Group LLC boosted its holdings in Cadence Design Systems by 22.0% in the second quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,260 shares of the software maker's stock worth $473,000 after acquiring an additional 227 shares in the last quarter. Finally, NorthRock Partners LLC boosted its holdings in Cadence Design Systems by 8.6% in the second quarter. NorthRock Partners LLC now owns 1,807 shares of the software maker's stock worth $678,000 after acquiring an additional 143 shares in the last quarter. 84.85% of the stock is owned by institutional investors and hedge funds.

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 (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.

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