Cadence Design Systems (NASDAQ:CDNS) Announces Earnings Results

Key Points

• Cadence Design Systems reported earnings of $1.22 EPS for the quarter, which was below analysts' expectations of $1.57, representing a miss of $0.35 EPS.
• Analysts have set a consensus price target of $336.50 for Cadence Design Systems, with multiple firms, including Bank of America and Mizuho, recently raising their price targets.
• A notable insider transaction occurred when VP Paul Scannell sold 4,710 shares of the company, reducing his ownership by 14.21% in a transaction valued at approximately $1.41 million.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) issued its quarterly earnings results on Monday. The software maker reported $1.65 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.56 by $0.09, RTT News reports. 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 analyst estimates of $1.25 billion. During the same period last year, the company posted $1.28 EPS. The firm's quarterly revenue was up 20.2% on a year-over-year basis. Cadence Design Systems updated its Q3 2025 guidance to 1.750-1.810 EPS and its FY 2025 guidance to 6.850-6.950 EPS.

Cadence Design Systems Stock Down 1.6%

NASDAQ:CDNS traded down $5.95 during trading hours on Friday, hitting $358.62. 462,972 shares of the stock traded hands, compared to its average volume of 2,085,731. The firm has a 50 day moving average price of $312.60 and a 200 day moving average price of $290.37. The firm has a market cap of $97.92 billion, a price-to-earnings ratio of 96.90, a PEG ratio of 4.88 and a beta of 0.99. Cadence Design Systems has a fifty-two week low of $221.56 and a fifty-two week high of $376.45. The company has a current ratio of 2.82, a quick ratio of 2.90 and a debt-to-equity ratio of 0.49.

Insider Transactions at Cadence Design Systems

In related news, Director James D. Plummer sold 868 shares of the company's stock in a transaction on Friday, May 16th. The stock was sold at an average price of $319.95, for a total transaction of $277,716.60. Following the transaction, the director directly owned 23,996 shares of the company's stock, valued at approximately $7,677,520.20. The trade was a 3.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Ita M. Brennan sold 180 shares of the stock in a transaction dated 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 sale, the director directly owned 8,010 shares of the company's stock, valued at approximately $2,435,040. This represents a 2.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 3,698 shares of company stock valued at $1,126,667 over the last quarter. Company insiders own 1.99% of the company's stock.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Cadence Design Systems stock. Brighton Jones LLC raised its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 80.2% in the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,519 shares of the software maker's stock after buying an additional 676 shares during the period. Brighton Jones LLC's holdings in Cadence Design Systems were worth $456,000 as of its most recent SEC filing. Institutional investors own 84.85% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on CDNS shares. Wall Street Zen lowered Cadence Design Systems from a "buy" rating to a "hold" rating in a report on Sunday, July 20th. JPMorgan Chase & Co. upped their price target on shares of Cadence Design Systems from $330.00 to $390.00 and gave the company an "overweight" rating in a report on Tuesday. The Goldman Sachs Group began coverage on shares of Cadence Design Systems in a research note on Thursday, July 10th. They issued a "buy" rating and a $380.00 price objective on the stock. Piper Sandler reissued a "neutral" rating and set a $355.00 target price (up from $328.00) on shares of Cadence Design Systems in a research note on Tuesday. Finally, 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. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and twelve have issued a buy rating to the company. According to MarketBeat.com, Cadence Design Systems currently has a consensus rating of "Moderate Buy" and an average price target of $364.33.

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.