Cadence Design Systems, Inc. (NASDAQ:CDNS) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Cadence Design Systems has received a consensus rating of "Moderate Buy" from 15 brokerages, with one sell, two hold, and twelve buy recommendations.
• The company reported a 20.2% year-over-year revenue increase for the last quarter, with earnings per share of $1.65, exceeding the consensus estimate by $0.09.
• Recent price target adjustments by analysts vary from $300.00 to $405.00, indicating a positive outlook for the stock's performance in the near future.

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the fifteen brokerages that are currently covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, two have issued a hold recommendation and twelve have issued a buy recommendation on the company. The average 1 year price target among brokers that have updated their coverage on the stock in the last year is $364.3333.

A number of equities research analysts have recently weighed in on CDNS shares. Mizuho lifted their price target on Cadence Design Systems from $360.00 to $375.00 and gave the company an "outperform" rating in a report on Tuesday, July 29th. KeyCorp raised their price objective on shares of Cadence Design Systems from $358.00 to $405.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 29th. Rosenblatt Securities reaffirmed a "neutral" rating and issued a $300.00 price objective on shares of Cadence Design Systems in a research note on Friday, July 25th. Stifel Nicolaus lifted their target price on shares of Cadence Design Systems from $350.00 to $395.00 and gave the company a "buy" rating in a research note on Tuesday, July 29th. Finally, Bank of America lifted their price objective on shares of Cadence Design Systems from $320.00 to $350.00 and gave the company a "buy" rating in a research note on Tuesday, April 29th.

Cadence Design Systems Stock Down 0.4%

Shares of Cadence Design Systems stock opened at $345.45 on Thursday. The business has a 50-day moving average of $327.57 and a 200-day moving average of $295.14. The company has a debt-to-equity ratio of 0.49, a current ratio of 2.82 and a quick ratio of 2.67. The company has a market capitalization of $94.13 billion, a PE ratio of 93.37, a P/E/G ratio of 4.55 and a beta of 0.97. Cadence Design Systems has a 1-year low of $221.56 and a 1-year high of $376.45.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its earnings results on Monday, July 28th. The software maker reported $1.65 earnings per share for the quarter, beating the consensus estimate of $1.56 by $0.09. Cadence Design Systems had a return on equity of 29.65% and a net margin of 19.88%.The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.25 billion. During the same period last year, the firm earned $1.28 earnings per share. The company's revenue was up 20.2% on a year-over-year basis. Cadence Design Systems has set its Q3 2025 guidance at 1.750-1.810 EPS. FY 2025 guidance at 6.850-6.950 EPS. As a group, equities analysts forecast that Cadence Design Systems will post 5.41 EPS for the current fiscal year.

Insider Activity

In related news, Director Ita M. Brennan sold 180 shares of the company's stock in a transaction dated Tuesday, June 10th. The shares were sold at an average price of $304.00, for a total value of $54,720.00. Following the sale, the director owned 8,010 shares of the company's stock, valued at $2,435,040. The trade was a 2.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Paul Cunningham sold 1,000 shares of the business's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $358.72, for a total transaction of $358,720.00. Following the completion of the transaction, the vice president owned 104,499 shares in the company, valued at approximately $37,485,881.28. This trade represents a 0.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 3,830 shares of company stock worth $1,207,671. Insiders own 1.99% of the company's stock.

Institutional Investors Weigh In On Cadence Design Systems

Institutional investors and hedge funds have recently modified their holdings of the business. Smallwood Wealth Investment Management LLC bought a new stake in shares of Cadence Design Systems during the first quarter worth $25,000. Costello Asset Management INC bought a new position in Cadence Design Systems during the first quarter worth about $25,000. Barrett & Company Inc. bought a new position in Cadence Design Systems in the 2nd quarter valued at about $31,000. Strategic Wealth Investment Group LLC bought a new position in Cadence Design Systems in the 2nd quarter valued at about $32,000. Finally, Saudi Central Bank bought a new stake in shares of Cadence Design Systems during the 1st quarter valued at approximately $27,000. 84.85% of the stock is owned by institutional investors.

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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