Cadence Design Systems (NASDAQ:CDNS) Shares Gap Down - Here's What Happened

Key Points

• Shares of Cadence Design Systems gapped down, opening at $348.50 from a previous close of $361.77, with the last traded price at $338.98 on significant volume.
• Analysts have issued upbeat forecasts, with several raising their price targets; the consensus target price for Cadence is $364.33 and twelve analysts rate it as a "Buy."
• The company reported a quarterly earnings per share (EPS) of $1.65, exceeding estimates and marking a 20.2% year-over-year revenue increase.

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $361.77, but opened at $348.50. Cadence Design Systems shares last traded at $338.98, with a volume of 1,669,636 shares trading hands.

Wall Street Analysts Forecast Growth

CDNS has been the subject of several analyst reports. Robert W. Baird lifted their price objective on shares of Cadence Design Systems from $340.00 to $380.00 and gave the stock an "outperform" rating in a research note on Monday, July 28th. Mizuho raised their price objective on Cadence Design Systems from $360.00 to $375.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 29th. Rosenblatt Securities restated a "neutral" rating and issued a $300.00 price target on shares of Cadence Design Systems in a research report on Friday, July 25th. Needham & Company LLC increased 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 note on Tuesday, July 29th. Finally, Berenberg Bank set a $400.00 target price on shares of Cadence Design Systems in a research report on Wednesday, July 30th. Twelve research 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's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $364.33.

Cadence Design Systems Price Performance

The stock has a market cap of $90.22 billion, a P/E ratio of 89.51, a price-to-earnings-growth ratio of 4.73 and a beta of 1.00. The business has a 50-day simple moving average of $341.37 and a 200 day simple moving average of $300.69. 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 (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings data on Monday, July 28th. The software maker reported $1.65 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.56 by $0.09. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate 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 revenue was up 20.2% compared to the same quarter last year. During the same period 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. On average, analysts forecast that Cadence Design Systems, Inc. will post 5.41 earnings per share for the current year.

Insiders Place Their Bets

In other Cadence Design Systems news, VP Paul Cunningham sold 1,000 shares of the business's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $343.95, for a total value of $343,950.00. Following the sale, the vice president directly owned 102,499 shares in the company, valued at $35,254,531.05. The trade was a 0.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Insiders sold a total of 4,000 shares of company stock valued at $1,311,020 over the last 90 days. 0.37% of the stock is currently owned by insiders.

Institutional Trading of Cadence Design Systems

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Tiemann Investment Advisors LLC raised its stake in shares of Cadence Design Systems by 2.9% during the 2nd 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 during the period. Petros Family Wealth LLC raised its stake in shares of Cadence Design Systems by 2.6% during the 2nd quarter. Petros Family Wealth LLC now owns 1,277 shares of the software maker's stock valued at $394,000 after purchasing an additional 32 shares during the period. Hemington Wealth Management raised its stake in shares of Cadence Design Systems by 14.0% during the 2nd quarter. Hemington Wealth Management now owns 261 shares of the software maker's stock valued at $80,000 after purchasing an additional 32 shares during the period. Legacy Capital Wealth Partners LLC raised its stake in shares of Cadence Design Systems by 2.8% during the 1st quarter. Legacy Capital Wealth Partners LLC now owns 1,214 shares of the software maker's stock valued at $309,000 after purchasing an additional 33 shares during the period. Finally, Empower Advisory Group LLC raised its stake in shares of Cadence Design Systems by 4.1% during the 1st quarter. Empower Advisory Group LLC now owns 911 shares of the software maker's stock valued at $232,000 after purchasing an additional 36 shares during the period. 84.85% of the stock is currently owned by 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.

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