Cadence Design Systems (NASDAQ:CDNS) Earns Outperform Rating from Analysts at BNP Paribas

Key Points

• Analysts at BNP Paribas have initiated coverage on Cadence Design Systems with an "outperform" rating and set a price target of $400.00 on the stock.
• Cadence Design Systems reported $1.65 earnings per share for the quarter, exceeding the consensus estimate of $1.56, and expressed guidance for Q3 2025 of 1.750-1.810 EPS.
• Institutional investors own approximately 84.85% of Cadence Design Systems' stock, indicating strong support from large stakeholders in the market.

Equities research analysts at BNP Paribas started coverage on shares of Cadence Design Systems (NASDAQ:CDNS - Get Free Report) in a research report issued on Thursday, Marketbeat reports. The firm set an "outperform" rating on the software maker's stock.

Other analysts have also recently issued reports about the stock. Stifel Nicolaus increased their target price on shares of Cadence Design Systems from $350.00 to $395.00 and gave the stock a "buy" rating in a research note on Tuesday, July 29th. Weiss Ratings restated a "hold (c)" rating on shares of Cadence Design Systems in a research report on Saturday, September 27th. BNP Paribas Exane initiated coverage on shares of Cadence Design Systems in a research report on Thursday. They set an "outperform" rating and a $400.00 price objective on the stock. Wall Street Zen cut shares of Cadence Design Systems from a "buy" rating to a "hold" rating in a research report on Sunday, September 21st. Finally, Wells Fargo & Company raised their price objective on shares of Cadence Design Systems from $365.00 to $405.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $368.53.

Cadence Design Systems Stock Performance

NASDAQ CDNS opened at $347.27 on Thursday. Cadence Design Systems has a 1 year low of $221.56 and a 1 year high of $376.45. 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 stock has a market capitalization of $94.63 billion, a PE ratio of 93.86, a P/E/G ratio of 4.55 and a beta of 0.99. The company's 50 day simple moving average is $353.04 and its two-hundred day simple moving average is $313.74.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted 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. Cadence Design Systems had a net margin of 19.88% and a return on equity of 29.65%. The business had revenue of $1.28 billion for the quarter, compared to analysts' expectations of $1.25 billion. During the same period in the prior year, the company posted $1.28 EPS. The business's revenue for the quarter was up 20.2% compared to the same quarter last year. 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 predict that Cadence Design Systems will post 5.41 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Cadence Design Systems news, VP Paul Cunningham sold 1,000 shares of the firm's stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $348.27, for a total value of $348,270.00. Following the sale, the vice president owned 99,672 shares of the company's stock, valued at $34,712,767.44. This trade represents a 0.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO John M. Wall sold 7,500 shares of the firm's stock in a transaction on Tuesday, September 30th. The stock was sold at an average price of $349.16, for a total transaction of $2,618,700.00. Following the completion of the sale, the chief financial officer directly owned 70,715 shares in the company, valued at approximately $24,690,849.40. This trade represents a 9.59% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 10,680 shares of company stock valued at $3,729,852 in the last quarter. Insiders own 1.99% of the company's stock.

Institutional Investors Weigh In On Cadence Design Systems

Large investors have recently added to or reduced their stakes in the company. Brighton Jones LLC boosted its stake in shares of Cadence Design Systems by 80.2% during the 4th quarter. Brighton Jones LLC now owns 1,519 shares of the software maker's stock valued at $456,000 after purchasing an additional 676 shares in the last quarter. Merit Financial Group LLC boosted its stake in shares of 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 in the last quarter. Congress Asset Management Co. boosted its stake in shares of Cadence Design Systems by 1.8% during the 1st quarter. Congress Asset Management Co. now owns 33,755 shares of the software maker's stock valued at $8,585,000 after purchasing an additional 612 shares in the last quarter. First Affirmative Financial Network boosted its stake in shares of Cadence Design Systems by 5.6% during the 1st quarter. First Affirmative Financial Network now owns 1,719 shares of the software maker's stock valued at $437,000 after purchasing an additional 91 shares in the last quarter. Finally, Sivia Capital Partners LLC boosted its stake in shares of Cadence Design Systems by 21.8% during the 1st quarter. Sivia Capital Partners LLC now owns 1,110 shares of the software maker's stock valued at $282,000 after purchasing an additional 199 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.