Cadence Design Systems (NASDAQ:CDNS) Raised to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Cadence Design Systems to “buy” from “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $404.14.
• Cadence reported quarterly EPS of $2.11, beating estimates by $0.06, while revenue rose 24.2% year over year to $1.58 billion.
• The stock opened at $352.84, with a market capitalization of about $97.17 billion; insiders have sold shares recently, while institutional investors own a substantial 84.85% stake.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Monday, Wall Street Zen reports.

Other equities analysts also recently issued research reports about the stock. Weiss Ratings downgraded shares of Cadence Design Systems from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, September 25th. Rothschild & Co Redburn lifted their price target on shares of Cadence Design Systems from $385.00 to $395.00 and gave the stock a "buy" rating in a report on Tuesday, July 28th. Robert W. Baird boosted their price objective on shares of Cadence Design Systems from $415.00 to $420.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 28th. BNP Paribas Exane increased their price objective on Cadence Design Systems from $400.00 to $450.00 and gave the company an "outperform" rating in a report on Thursday, June 18th. Finally, Needham & Company LLC restated a "buy" rating and issued a $400.00 price objective on shares of Cadence Design Systems in a report on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Cadence Design Systems currently has an average rating of "Moderate Buy" and an average target price of $404.14.

Cadence Design Systems Stock Performance

Cadence Design Systems stock opened at $352.84 on Monday. The business has a 50 day moving average of $319.56 and a 200-day moving average of $337.44. Cadence Design Systems has a 1 year low of $262.75 and a 1 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. The company has a market capitalization of $97.17 billion, a P/E ratio of 70.15, a P/E/G ratio of 3.78 and a beta of 1.13.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 business had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.58 billion. During the same quarter last year, the business earned $1.65 EPS. The firm'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. On average, equities research analysts predict that Cadence Design Systems will post 6.41 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Ita Brennan sold 180 shares of the company's stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $285.51, for a total value of $51,391.80. Following the sale, the director directly owned 7,824 shares in the company, valued at $2,233,830.24. This represents a 2.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $350.07, for a total transaction of $437,587.50. Following the sale, the director directly owned 39,544 shares of the company's stock, valued at $13,843,168.08. This represents a 3.06% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 6,960 shares of company stock valued at $2,185,879. Insiders own 0.49% of the company's stock.

Institutional Investors Weigh In On Cadence Design Systems

A number of institutional investors have recently modified their holdings of the company. J. Stern & Co. LLP raised its position in shares of Cadence Design Systems by 10,159.3% in the 4th quarter. J. Stern & Co. LLP now owns 2,953,256 shares of the software maker's stock worth $923,129,000 after acquiring an additional 2,924,470 shares in the last quarter. Legal & General Group Plc acquired a new position in shares of Cadence Design Systems in the 2nd quarter valued at about $702,615,000. Jupiter Topco LLC acquired a new position in shares of Cadence Design Systems in the 2nd quarter valued at about $688,746,000. Bank of New York Mellon Corp bought a new stake in shares of Cadence Design Systems during the 2nd quarter valued at about $607,350,000. Finally, Deutsche Bank AG bought a new stake in shares of Cadence Design Systems during the 2nd quarter valued at about $532,338,000. 84.85% of the stock is owned by institutional investors.

About Cadence Design Systems

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.

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