Cadence Design Systems (NASDAQ:CDNS) Now Covered by BNP Paribas Exane

Key Points

• BNP Paribas Exane has initiated coverage on Cadence Design Systems with an "outperform" rating and a price target of $400.00, indicating a potential upside of 13.65% from the current stock price.
• Multiple analysts, including KeyCorp and JPMorgan Chase, have also raised their price targets for Cadence, with an average consensus target price of $368.53 and a strong overall rating of "Moderate Buy."
• Cadence reported a quarterly EPS of $1.65, exceeding expectations, with revenues of $1.28 billion reflecting a 20.2% increase year-over-year.

Equities research analysts at BNP Paribas Exane began coverage on shares of Cadence Design Systems (NASDAQ:CDNS - Get Free Report) in a report issued on Thursday,Briefing.com Automated Import reports. The brokerage set an "outperform" rating and a $400.00 price target on the software maker's stock. BNP Paribas Exane's price objective would suggest a potential upside of 13.65% from the stock's current price.

A number of other equities analysts have also commented on the company. BNP Paribas assumed coverage on Cadence Design Systems in a research note on Thursday. They issued an "outperform" rating and a $400.00 price objective on the stock. KeyCorp raised their price target on Cadence Design Systems from $358.00 to $405.00 and gave the company an "overweight" rating in a report on Tuesday, July 29th. Loop Capital raised their price target on Cadence Design Systems from $370.00 to $390.00 and gave the company a "buy" rating in a report on Tuesday, July 29th. JPMorgan Chase & Co. increased their price target on shares of Cadence Design Systems from $330.00 to $390.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. Finally, Berenberg Bank set a $400.00 price target on Cadence Design Systems in a research report on Wednesday, July 30th. Fourteen investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $368.53.

Cadence Design Systems Stock Performance

Shares of NASDAQ CDNS opened at $351.97 on Thursday. 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 one year low of $221.56 and a one year high of $376.45. The business's 50-day moving average price is $352.28 and its two-hundred day moving average price is $312.46. The company has a market capitalization of $95.91 billion, a P/E ratio of 95.13, a price-to-earnings-growth ratio of 4.61 and a beta of 0.99.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings results on Monday, July 28th. The software maker reported $1.65 EPS for the quarter, beating the consensus estimate of $1.56 by $0.09. The business had revenue of $1.28 billion during the quarter, compared to analysts' expectations 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 quarterly revenue was up 20.2% compared to the same quarter last year. During the same quarter in the previous year, the business 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. Analysts anticipate that Cadence Design Systems will post 5.41 earnings per share for the current fiscal year.

Insider Activity

In other news, VP Paul Cunningham sold 1,000 shares of Cadence Design Systems stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $343.95, for a total value of $343,950.00. Following the completion of the sale, the vice president directly owned 102,499 shares in the company, valued at approximately $35,254,531.05. The trade was a 0.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Ita M. Brennan sold 180 shares of the business's stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $334.51, for a total value of $60,211.80. Following the completion of the sale, the director owned 7,830 shares of the company's stock, valued at approximately $2,619,213.30. This trade represents a 2.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 2,180 shares of company stock valued at $762,882 in the last quarter. Corporate insiders own 1.99% of the company's stock.

Institutional Trading of Cadence Design Systems

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Tiemann Investment Advisors LLC grew its stake in Cadence Design Systems by 2.9% in the second quarter. Tiemann Investment Advisors LLC now owns 1,050 shares of the software maker's stock valued at $324,000 after purchasing an additional 30 shares in the last quarter. Petros Family Wealth LLC grew its stake in shares of Cadence Design Systems by 2.6% in the 2nd quarter. Petros Family Wealth LLC now owns 1,277 shares of the software maker's stock valued at $394,000 after buying an additional 32 shares in the last quarter. Hemington Wealth Management increased its holdings in Cadence Design Systems by 14.0% in the second quarter. Hemington Wealth Management now owns 261 shares of the software maker's stock worth $80,000 after buying an additional 32 shares during the last quarter. Legacy Capital Wealth Partners LLC lifted its stake in Cadence Design Systems by 2.8% in the first quarter. Legacy Capital Wealth Partners LLC now owns 1,214 shares of the software maker's stock valued at $309,000 after acquiring an additional 33 shares during the last quarter. Finally, Empower Advisory Group LLC grew its position in Cadence Design Systems by 4.1% in the first quarter. Empower Advisory Group LLC now owns 911 shares of the software maker's stock worth $232,000 after acquiring an additional 36 shares in the last quarter. 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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