Cadence Design Systems (NASDAQ:CDNS) Receives Neutral Rating from Rosenblatt Securities

Key Points

• Cadence Design Systems received a neutral rating from Rosenblatt Securities, with a price target of $320.00, indicating a potential downside of 3.91% from its current price of $333.03.
• Other brokerages, including Loop Capital and Needham & Company, have set higher targets at $390.00 and identified the stock as a buy, suggesting varying analyst opinions on the company's future.
• Cadence's recent quarterly earnings surpassed estimates, reporting $1.65 EPS against a $1.56 consensus, with revenue up 20.2% year-over-year, reflecting strong performance amid market volatility.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report)'s stock had its "neutral" rating reiterated by equities research analysts at Rosenblatt Securities in a research note issued to investors on Wednesday,Benzinga reports. They currently have a $320.00 price target on the software maker's stock. Rosenblatt Securities' price objective would suggest a potential downside of 3.91% from the stock's current price.

Several other brokerages also recently commented on CDNS. Loop Capital boosted their target price on Cadence Design Systems from $370.00 to $390.00 and gave the stock a "buy" rating in a report on Tuesday, July 29th. Needham & Company LLC boosted their price objective on shares of Cadence Design Systems from $325.00 to $390.00 and gave the stock a "buy" rating in a research report on Tuesday, July 29th. BNP Paribas began coverage on shares of Cadence Design Systems in a research report on Thursday, October 2nd. They issued an "outperform" rating and a $400.00 price objective for the company. Piper Sandler restated a "neutral" rating and issued a $355.00 price objective (up previously from $328.00) on shares of Cadence Design Systems in a research report on Tuesday, July 29th. Finally, Stifel Nicolaus lifted their target price on shares of Cadence Design Systems from $350.00 to $395.00 and gave the stock a "buy" rating in a report on Tuesday, July 29th. Thirteen analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $369.71.

Cadence Design Systems Stock Performance

CDNS stock traded down $0.42 during trading on Wednesday, reaching $333.03. 264,197 shares of the stock were exchanged, compared to its average volume of 1,952,281. The company has a market capitalization of $90.75 billion, a P/E ratio of 90.01, a price-to-earnings-growth ratio of 4.32 and a beta of 0.99. 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 twelve month low of $221.56 and a twelve month high of $376.45. The stock has a 50 day simple moving average of $347.69 and a 200-day simple moving average of $320.51.

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, topping analysts' consensus estimates of $1.56 by $0.09. The firm had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.25 billion. Cadence Design Systems had a net margin of 19.88% and a return on equity of 29.65%. The company's revenue for the quarter was up 20.2% compared to the same quarter last year. During the same quarter last year, the company earned $1.28 earnings per share. 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, sell-side analysts anticipate that Cadence Design Systems will post 5.41 earnings per share for the current year.

Insider Activity

In related news, VP Paul Cunningham sold 1,000 shares of the business'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 directly owned 99,672 shares of the company's stock, valued at approximately $34,712,767.44. The trade was a 0.99% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO John M. Wall sold 7,500 shares of the business's stock in a transaction on Tuesday, September 30th. The shares were 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 $24,690,849.40. This represents a 9.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 10,680 shares of company stock valued at $3,729,852 in the last quarter. Company insiders own 0.37% of the company's stock.

Institutional Investors Weigh In On Cadence Design Systems

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Smallwood Wealth Investment Management LLC acquired a new stake in shares of Cadence Design Systems during the 1st quarter worth approximately $25,000. Costello Asset Management INC acquired a new stake in shares of Cadence Design Systems during the 1st quarter worth approximately $25,000. Saudi Central Bank acquired a new stake in shares of Cadence Design Systems during the 1st quarter worth approximately $27,000. Valley National Advisers Inc. boosted its position in shares of Cadence Design Systems by 707.1% during the 1st quarter. Valley National Advisers Inc. now owns 113 shares of the software maker's stock worth $28,000 after acquiring an additional 99 shares in the last quarter. Finally, Barrett & Company Inc. acquired a new stake in shares of Cadence Design Systems during the 2nd quarter worth approximately $31,000. 84.85% of the stock is owned by institutional investors.

Cadence Design Systems Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.