Cadence Design Systems' (CDNS) "Buy" Rating Reiterated at Rosenblatt Securities

Key Points

• Rosenblatt Securities reiterated its “Buy” rating on Cadence Design Systems and maintained a $420 price target, implying approximately 35.6% upside. The stock has a consensus “Moderate Buy” rating and an average target of $404.14.
• Cadence shares opened at $309.65, down 5%, and remain below their 50-day and 200-day moving averages. The stock trades at a high valuation, with a P/E ratio of 61.56 and an $85.27 billion market capitalization.
• Cadence recently exceeded quarterly earnings expectations, reporting $2.11 in EPS versus a $2.05 consensus estimate, while revenue rose 24.2% year over year to $1.58 billion. Institutional investors own 84.85% of the company, while insiders have sold $2.83 million in shares over the past three months.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report)'s stock had its "buy" rating restated by research analysts at Rosenblatt Securities in a note issued to investors on Friday, Benzinga reports. They presently have a $420.00 price target on the software maker's stock. Rosenblatt Securities's price target points to a potential upside of 35.64% from the stock's current price.

A number of other equities research analysts also recently weighed in on CDNS. Wall Street Zen downgraded Cadence Design Systems from a "buy" rating to a "hold" rating in a report on Tuesday. Weiss Ratings raised shares of Cadence Design Systems from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $420.00 price objective (up from $400.00) on shares of Cadence Design Systems in a research note on Wednesday, October 7th. Bank of America boosted their price objective on shares of Cadence Design Systems from $400.00 to $420.00 and gave the company a "buy" rating in a report on Tuesday, July 28th. Finally, Rothschild & Co Redburn increased their target price on shares of Cadence Design Systems from $385.00 to $395.00 and gave the stock a "buy" rating in a research report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $404.14.

Cadence Design Systems Stock Down 5.0%

Cadence Design Systems stock opened at $309.65 on Friday. The company's 50-day moving average price is $318.35 and its two-hundred day moving average price is $340.48. The company has a quick ratio of 1.53, a current ratio of 1.74 and a debt-to-equity ratio of 0.36. The stock has a market cap of $85.27 billion, a P/E ratio of 61.56, a P/E/G ratio of 3.49 and a beta of 1.13. Cadence Design Systems has a twelve month low of $262.75 and a twelve month high of $416.69.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its 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. The company had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.58 billion. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%. The firm's revenue for the quarter was up 24.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $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. As a group, analysts expect that Cadence Design Systems will post 6.42 EPS for the current year.

Insider Activity

In other Cadence Design Systems news, VP Paul Cunningham sold 2,000 shares of the stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $324.13, for a total transaction of $648,260.00. Following the sale, the vice president directly owned 119,612 shares in the company, valued at $38,769,837.56. This represents a 1.64% 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 Ita Brennan sold 180 shares of the firm's stock in a transaction dated Thursday, September 10th. The shares were 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 in the company, valued at approximately $2,233,830.24. This represents a 2.25% 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 three months, insiders sold 8,960 shares of company stock worth $2,834,139. 0.49% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cadence Design Systems

Hedge funds and other institutional investors have recently modified their holdings of the business. Avalon Trust Co acquired a new stake in Cadence Design Systems in the second quarter valued at about $30,000. Fiduciary Financial Advisors acquired a new position in Cadence Design Systems during the second quarter worth about $31,000. Arlington Trust Co LLC raised its stake in Cadence Design Systems by 154.3% during the second quarter. Arlington Trust Co LLC now owns 89 shares of the software maker's stock worth $33,000 after acquiring an additional 54 shares in the last quarter. Burkett Financial Services LLC bought a new position in shares of Cadence Design Systems in the third quarter worth about $30,000. Finally, Whipplewood Advisors LLC boosted its stake in shares of Cadence Design Systems by 933.3% in the 1st quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker's stock valued at $26,000 after purchasing an additional 84 shares in the last quarter. Institutional investors own 84.85% of the company's stock.

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.