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

Key Points

• Cadence Design Systems has received a consensus rating of "Moderate Buy" from eighteen research firms, with fourteen giving buy recommendations and one recommending a sell.
• The average 12-month price target for Cadence Design Systems is $368.53, with several analysts recently boosting their price objectives, including Wells Fargo's increase to $405.00.
• Recent insider transactions included CFO John M. Wall selling 7,500 shares at an average price of $349.16, resulting in a 9.59% decrease in his position.

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the eighteen research firms that are covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, three have given a hold recommendation and fourteen have assigned a buy recommendation to the company. The average 12-month price target among brokers that have covered the stock in the last year is $368.5294.

A number of research analysts have recently commented on the company. Piper Sandler reissued a "neutral" rating and set a $355.00 price objective (up previously from $328.00) on shares of Cadence Design Systems in a report on Tuesday, July 29th. Wells Fargo & Company boosted their price objective on Cadence Design Systems from $365.00 to $405.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 29th. Needham & Company LLC boosted their price objective on Cadence Design Systems from $325.00 to $390.00 and gave the stock a "buy" rating in a research report on Tuesday, July 29th. Rosenblatt Securities reissued a "neutral" rating and set a $300.00 price objective on shares of Cadence Design Systems in a research report on Friday, July 25th. Finally, BNP Paribas Exane initiated coverage on Cadence Design Systems in a research report on Thursday, October 2nd. They set an "outperform" rating and a $400.00 price objective for the company.

Insider Buying and Selling

In related news, CFO John M. Wall sold 7,500 shares of the business's stock in a transaction dated Tuesday, September 30th. The stock was sold at an average price of $349.16, for a total transaction of $2,618,700.00. Following the completion of the transaction, the chief financial officer owned 70,715 shares of the company's stock, valued at approximately $24,690,849.40. The trade was a 9.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Paul Cunningham sold 1,000 shares of Cadence Design Systems stock in a transaction dated Wednesday, October 1st. The stock was sold at an average price of $348.27, for a total value of $348,270.00. Following the sale, the vice president directly owned 99,672 shares in the company, valued at approximately $34,712,767.44. This trade represents a 0.99% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 10,680 shares of company stock valued at $3,729,852. Insiders own 1.99% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in CDNS. Norges Bank acquired a new position in Cadence Design Systems in the second quarter worth about $1,190,618,000. Nuveen LLC acquired a new position in Cadence Design Systems in the first quarter worth about $289,744,000. Jennison Associates LLC raised its position in Cadence Design Systems by 13.2% in the first quarter. Jennison Associates LLC now owns 9,064,953 shares of the software maker's stock worth $2,305,489,000 after purchasing an additional 1,054,702 shares in the last quarter. Assenagon Asset Management S.A. raised its position in Cadence Design Systems by 466.4% in the second quarter. Assenagon Asset Management S.A. now owns 786,849 shares of the software maker's stock worth $242,468,000 after purchasing an additional 647,931 shares in the last quarter. Finally, Voya Investment Management LLC raised its stake in Cadence Design Systems by 914.2% during the third quarter. Voya Investment Management LLC now owns 691,071 shares of the software maker's stock worth $242,746,000 after acquiring an additional 622,934 shares in the last quarter. Institutional investors and hedge funds own 84.85% of the company's stock.

Cadence Design Systems Stock Down 0.4%

Shares of Cadence Design Systems stock opened at $348.67 on Friday. The firm has a market cap of $95.01 billion, a price-to-earnings ratio of 94.24, a P/E/G ratio of 4.59 and a beta of 0.99. The company has a debt-to-equity ratio of 0.49, a current ratio of 2.82 and a quick ratio of 2.67. Cadence Design Systems has a 52-week low of $221.56 and a 52-week high of $376.45. The stock has a 50-day simple moving average of $352.27 and a 200-day simple moving average of $316.16.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings data on Monday, July 28th. The software maker reported $1.65 EPS for the quarter, beating analysts' consensus estimates of $1.56 by $0.09. The business had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.25 billion. Cadence Design Systems had a return on equity of 29.65% and a net margin of 19.88%.The firm's revenue for the quarter was up 20.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.28 EPS. Cadence Design Systems has set its Q3 2025 guidance at 1.750-1.810 EPS. FY 2025 guidance at 6.850-6.950 EPS. On average, equities research analysts expect that Cadence Design Systems will post 5.41 earnings per share for the current fiscal year.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification.

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