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 research firms, with 12 analysts recommending a buy and one recommending a sell.
• The company reported earnings of $1.65 EPS for the last quarter, exceeding analysts' expectations of $1.56 EPS, contributing to a 20.2% year-over-year revenue increase.
• Cadence's stock has a current market capitalization of $93.59 billion and shows significant institutional ownership, with 84.85% held by institutional investors.

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report) have been given a consensus rating of "Moderate Buy" by the fifteen research firms that are presently covering the company, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, two have given a hold recommendation and twelve have given a buy recommendation to the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $364.3333.

Several equities research analysts have recently issued reports on the stock. Rosenblatt Securities restated a "neutral" rating and issued a $300.00 target price on shares of Cadence Design Systems in a report on Friday, July 25th. Loop Capital raised their target price on shares of Cadence Design Systems from $370.00 to $390.00 and gave the stock a "buy" rating in a report on Tuesday, July 29th. JPMorgan Chase & Co. raised their target price on shares of Cadence Design Systems from $330.00 to $390.00 and gave the stock an "overweight" rating in a report on Tuesday, July 29th. Berenberg Bank set a $400.00 price objective on shares of Cadence Design Systems in a report on Wednesday, July 30th. Finally, The Goldman Sachs Group initiated coverage on shares of Cadence Design Systems in a report on Thursday, July 10th. They set a "buy" rating and a $380.00 price objective for the company.

Cadence Design Systems Price Performance

Cadence Design Systems stock opened at $343.48 on Monday. The firm has a 50-day moving average price of $342.75 and a 200-day moving average price of $303.02. The firm has a market capitalization of $93.59 billion, a PE ratio of 92.83, a price-to-earnings-growth ratio of 4.50 and a beta of 1.00. The company has a current ratio of 2.82, a quick ratio of 2.67 and a debt-to-equity ratio of 0.49. Cadence Design Systems has a 12-month low of $221.56 and a 12-month high of $376.45.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its earnings results on Monday, July 28th. The software maker reported $1.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.56 by $0.09. The firm had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.25 billion. Cadence Design Systems had a net margin of 19.88% and a return on equity of 29.65%. The business's revenue was up 20.2% on a year-over-year basis. During the same quarter last year, the business earned $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. As a group, equities research analysts forecast that Cadence Design Systems will post 5.41 EPS for the current year.

Insider Transactions at Cadence Design Systems

In related news, Director Ita M. Brennan sold 180 shares of Cadence Design Systems stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $334.51, for a total transaction of $60,211.80. Following the completion of the sale, the director owned 7,830 shares in the company, valued at $2,619,213.30. This trade represents a 2.25% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Paul Cunningham sold 1,000 shares of Cadence Design Systems stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $343.95, for a total transaction of $343,950.00. Following the sale, the vice president owned 102,499 shares of the company's stock, valued at $35,254,531.05. The trade was a 0.97% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 3,180 shares of company stock valued at $1,069,232 in the last quarter. 1.99% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Park Square Financial Group LLC purchased a new position in Cadence Design Systems during the 4th quarter valued at about $348,000. Merit Financial Group LLC increased its position in Cadence Design Systems by 42.6% during the 1st quarter. Merit Financial Group LLC now owns 3,165 shares of the software maker's stock valued at $805,000 after purchasing an additional 946 shares during the period. Novem Group increased its position in Cadence Design Systems by 30.3% during the 1st quarter. Novem Group now owns 4,067 shares of the software maker's stock valued at $1,034,000 after purchasing an additional 945 shares during the period. Seilern Investment Management Ltd purchased a new position in Cadence Design Systems during the 1st quarter valued at about $64,800,000. Finally, Integrated Advisors Network LLC increased its position in Cadence Design Systems by 156.9% during the 4th quarter. Integrated Advisors Network LLC now owns 3,406 shares of the software maker's stock valued at $1,023,000 after purchasing an additional 2,080 shares during the period. Hedge funds and other institutional investors own 84.85% of the company's stock.

About Cadence Design Systems

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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