Cadence Design Systems (NASDAQ:CDNS) Rating Lowered to Hold at Wall Street Zen

Key Points

• Cadence Design Systems (NASDAQ:CDNS) has been downgraded from a "buy" rating to a "hold" rating by Wall Street Zen according to a recent research note.
• Despite the downgrade, other analysts have provided optimistic price targets; Loop Capital raised its target to $390.00 and Mizuho to $375.00, both maintaining a "buy" rating.
• The company reported a quarterly earnings per share of $1.65, exceeding analysts' estimates, with revenue increasing 20.2% year-over-year to $1.28 billion.

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

A number of other brokerages have also weighed in on CDNS. Needham & Company LLC lifted their target price on Cadence Design Systems from $325.00 to $390.00 and gave the company a "buy" rating in a research report on Tuesday, July 29th. Piper Sandler reissued a "neutral" rating and set a $355.00 price target (up previously from $328.00) on shares of Cadence Design Systems in a research report on Tuesday, July 29th. Wells Fargo & Company increased their price target 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. Berenberg Bank set a $400.00 price target on Cadence Design Systems in a research report on Wednesday, July 30th. Finally, Robert W. Baird increased their price target on Cadence Design Systems from $340.00 to $380.00 and gave the stock an "outperform" rating in a research report on Monday, July 28th. Twelve analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $364.33.

Cadence Design Systems Trading Down 1.1%

Shares of Cadence Design Systems stock traded down $3.86 on Friday, reaching $350.43. The company had a trading volume of 1,303,717 shares, compared to its average volume of 1,395,147. The firm has a market cap of $95.49 billion, a price-to-earnings ratio of 94.71, a P/E/G ratio of 4.60 and a beta of 1.00. 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 firm's 50-day moving average price is $335.53 and its two-hundred day moving average price is $297.80. 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 EPS for the quarter, topping analysts' consensus estimates 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 firm had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.25 billion. During the same quarter in the previous year, the business earned $1.28 EPS. The company's quarterly 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, research analysts predict that Cadence Design Systems will post 5.41 earnings per share for the current fiscal year.

Insider Buying and Selling at Cadence Design Systems

In other news, Director Ita M. Brennan sold 180 shares of the business's stock in a transaction on Tuesday, June 10th. The stock was sold at an average price of $304.00, for a total value of $54,720.00. Following the completion of the transaction, the director directly owned 8,010 shares of the company's stock, valued at approximately $2,435,040. The trade was a 2.20% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Paul Cunningham sold 1,000 shares of the business's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $358.72, for a total value of $358,720.00. Following 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. Over the last three months, insiders sold 3,180 shares of company stock valued at $1,021,790. Corporate insiders own 0.37% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. China Universal Asset Management Co. Ltd. grew its stake in Cadence Design Systems by 16.1% during the 2nd quarter. China Universal Asset Management Co. Ltd. now owns 9,599 shares of the software maker's stock worth $2,958,000 after buying an additional 1,329 shares during the last quarter. Thrivent Financial for Lutherans grew its stake in Cadence Design Systems by 10.5% during the 2nd quarter. Thrivent Financial for Lutherans now owns 12,441 shares of the software maker's stock worth $3,831,000 after buying an additional 1,185 shares during the last quarter. MASTERINVEST Kapitalanlage GmbH purchased a new position in Cadence Design Systems during the 2nd quarter worth $3,501,000. Promus Capital LLC purchased a new position in Cadence Design Systems during the 2nd quarter worth $33,000. Finally, Stance Capital LLC purchased a new position in Cadence Design Systems during the 2nd quarter worth $1,336,000. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

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.