Cadence Design Systems, Inc. (NASDAQ:CDNS) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Cadence Design Systems has a consensus analyst rating of “Moderate Buy”, with 13 of 16 analysts calling it a buy and an average 12-month price target of $387.
• The company recently reported better-than-expected quarterly results, posting EPS of $1.96 versus estimates of $1.91 and revenue of $1.47 billion, up 18.6% year over year.
• Despite strong fundamentals, the stock saw some insider selling in recent months, including multiple vice presidents reducing holdings under pre-arranged trading plans.

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the sixteen ratings firms that are presently covering the stock, MarketBeat Ratings reports. Three analysts have rated the stock with a hold recommendation and thirteen have assigned a buy recommendation to the company. The average twelve-month target price among analysts that have issued ratings on the stock in the last year is $387.00.

Several research analysts have recently commented on the stock. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Cadence Design Systems in a report on Thursday, July 2nd. KeyCorp boosted their price target on Cadence Design Systems from $405.00 to $425.00 and gave the company an "overweight" rating in a research note on Tuesday, April 28th. Rosenblatt Securities reissued a "buy" rating and set a $360.00 price target on shares of Cadence Design Systems in a research report on Friday, April 24th. Citigroup raised their price objective on Cadence Design Systems from $385.00 to $400.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. Finally, Stifel Nicolaus raised their price objective on Cadence Design Systems from $395.00 to $432.00 and gave the stock a "buy" rating in a research note on Tuesday, June 9th.

Cadence Design Systems Stock Performance

Shares of Cadence Design Systems stock traded down $1.78 during trading on Friday, reaching $384.17. The company's stock had a trading volume of 940,471 shares, compared to its average volume of 2,166,228. The company has a quick ratio of 1.32, a current ratio of 1.47 and a debt-to-equity ratio of 0.38. The business's 50-day moving average price is $374.82 and its 200-day moving average price is $326.95. Cadence Design Systems has a 52 week low of $262.75 and a 52 week high of $416.69. The firm has a market cap of $105.96 billion, a PE ratio of 89.55, a P/E/G ratio of 4.55 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its quarterly earnings results on Monday, April 27th. The software maker reported $1.96 EPS for the quarter, topping analysts' consensus estimates of $1.91 by $0.05. The business had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.46 billion. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. Cadence Design Systems's revenue for the quarter was up 18.6% compared to the same quarter last year. During the same period last year, the firm earned $1.57 earnings per share. Cadence Design Systems has set its FY 2026 guidance at 7.850-7.950 EPS and its Q2 2026 guidance at 2.020-2.080 EPS. Equities analysts forecast that Cadence Design Systems will post 6.23 earnings per share for the current year.

Insider Activity at Cadence Design Systems

In other Cadence Design Systems news, VP Paul Scannell sold 7,081 shares of the stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $393.91, for a total transaction of $2,789,276.71. Following the sale, the vice president directly owned 32,181 shares in the company, valued at $12,676,417.71. This represents a 18.04% 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, VP Paul Cunningham sold 2,000 shares of the firm's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $391.00, for a total transaction of $782,000.00. Following the completion of the transaction, the vice president directly owned 126,586 shares in the company, valued at approximately $49,495,126. This represents a 1.56% 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. Insiders sold a total of 178,557 shares of company stock worth $66,925,452 in the last quarter. 0.49% of the stock is currently owned by corporate insiders.

Institutional Trading of Cadence Design Systems

A number of institutional investors and hedge funds have recently made changes to their positions in CDNS. Pinnacle Wealth Management Advisory Group LLC raised its position in Cadence Design Systems by 3.1% during the first quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,033 shares of the software maker's stock valued at $287,000 after purchasing an additional 31 shares in the last quarter. Westfuller Advisors LLC boosted its holdings in shares of Cadence Design Systems by 8.2% in the 1st quarter. Westfuller Advisors LLC now owns 408 shares of the software maker's stock valued at $113,000 after purchasing an additional 31 shares in the last quarter. Spirepoint Private Client LLC increased its stake in shares of Cadence Design Systems by 4.6% in the 4th quarter. Spirepoint Private Client LLC now owns 722 shares of the software maker's stock valued at $226,000 after purchasing an additional 32 shares during the last quarter. Cornerstone Planning Group LLC raised its holdings in shares of Cadence Design Systems by 32.0% during the 1st quarter. Cornerstone Planning Group LLC now owns 132 shares of the software maker's stock worth $37,000 after buying an additional 32 shares in the last quarter. Finally, KCM Investment Advisors LLC raised its holdings in shares of Cadence Design Systems by 0.4% during the 1st quarter. KCM Investment Advisors LLC now owns 8,013 shares of the software maker's stock worth $2,227,000 after buying an additional 32 shares in the last quarter. Institutional investors own 84.85% of the company's stock.

About Cadence Design Systems

Cadence Design Systems, Inc NASDAQ: CDNS is a global provider of electronic design automation (EDA) software, hardware and intellectual property used to design and verify advanced semiconductor chips, systems-on-chip (SoCs), printed circuit boards (PCBs) and packaging. Headquartered in San Jose, California and founded in 1988, Cadence serves semiconductor companies, original equipment manufacturers and system designers across the globe, helping customers accelerate design cycles and manage the complexity of modern integrated systems.

The company's offerings span software tools for digital, custom/analog and mixed-signal design, verification and signoff, as well as solutions for system-level modeling, thermal and signal integrity analysis, and PCB and package design.

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