Cadence Design Systems (NASDAQ:CDNS) Stock Dropped to Hold by Wall Street Zen

Key Points

• Wall Street Zen downgraded Cadence Design Systems from “Buy” to “Hold,” though broader analyst sentiment remains positive with a “Moderate Buy” consensus and an average price target of $404.12.
• Cadence opened at $351.35, with a market capitalization of $96.76 billion and a high valuation at 69.85 times earnings. Its shares remain below the 12-month high of $416.69.
• The company recently beat quarterly earnings expectations, reporting $2.11 in EPS versus $2.05 expected, while revenue rose 24.2% year over year to $1.58 billion. Insiders sold $1.75 million of stock over the past quarter, mostly under pre-arranged trading plans.

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

Several other equities analysts have also recently commented on CDNS. FBN Securities started coverage on shares of Cadence Design Systems in a research report on Friday, September 11th. They set an "outperform" rating and a $375.00 price target on the stock. Needham & Company LLC reissued a "buy" rating and issued a $400.00 price objective on shares of Cadence Design Systems in a report on Tuesday, July 28th. Citigroup increased 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. Morgan Stanley reiterated an "overweight" rating and issued a $400.00 target price on shares of Cadence Design Systems in a research report on Wednesday, July 29th. Finally, Robert W. Baird boosted their price target on Cadence Design Systems from $415.00 to $420.00 and gave the company an "outperform" rating in a report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $404.12.

Cadence Design Systems Price Performance

CDNS opened at $351.35 on Friday. The company has a fifty day simple moving average of $317.93 and a 200 day simple moving average of $334.86. The firm has a market cap of $96.76 billion, a price-to-earnings ratio of 69.85, a PEG ratio of 3.77 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. The company has a current ratio of 1.74, a quick ratio of 1.53 and a debt-to-equity ratio of 0.36.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, topping analysts' consensus estimates of $2.05 by $0.06. The firm had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.58 billion. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The firm's revenue was up 24.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.65 EPS. 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 expect that Cadence Design Systems will post 6.4 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Ita Brennan sold 180 shares of the firm'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 owned 7,824 shares of the company's stock, valued at approximately $2,233,830.24. This trade represents a 2.25% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 transaction, the vice president owned 31,720 shares of the company's stock, valued at $10,753,080. This represents a 0.88% 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. Insiders have sold a total of 5,710 shares of company stock valued at $1,748,292 over the last quarter. Company insiders own 0.49% of the company's stock.

Hedge Funds Weigh In On Cadence Design Systems

Several institutional investors have recently modified their holdings of the company. State Street Corp boosted its stake in Cadence Design Systems by 1.1% during the 4th quarter. State Street Corp now owns 12,603,368 shares of the software maker's stock valued at $3,939,561,000 after purchasing an additional 135,206 shares during the period. Van ECK Associates Corp increased its stake in shares of Cadence Design Systems by 21.8% in the second quarter. Van ECK Associates Corp now owns 4,889,765 shares of the software maker's stock valued at $1,835,227,000 after purchasing an additional 874,392 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of Cadence Design Systems by 1.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,385,655 shares of the software maker's stock valued at $1,270,704,000 after buying an additional 48,937 shares during the last quarter. J. Stern & Co. LLP raised its holdings in shares of Cadence Design Systems by 10,159.3% during the fourth quarter. J. Stern & Co. LLP now owns 2,953,256 shares of the software maker's stock valued at $923,129,000 after buying an additional 2,924,470 shares during the last quarter. Finally, Legal & General Group Plc acquired a new position in shares of Cadence Design Systems during the second quarter worth approximately $702,615,000. 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.

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