Cadence Design Systems (NASDAQ:CDNS) Stock Price Expected to Rise, Robert W. Baird Analyst Says

Key Points

• Robert W. Baird has raised its target price for Cadence Design Systems (NASDAQ:CDNS) from $340.00 to $380.00, indicating a potential upside of 15.09%.
• Cadence has received mixed ratings from analysts, with one sell rating, two hold ratings, and twelve buy ratings, resulting in a consensus rating of "Moderate Buy".
• The company's recent quarterly earnings report showed a 23.1% year-over-year increase in revenue and an EPS of $1.57, surpassing analyst expectations.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) had its target price increased by stock analysts at Robert W. Baird from $340.00 to $380.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage presently has an "outperform" rating on the software maker's stock. Robert W. Baird's target price would indicate a potential upside of 15.09% from the company's current price.

Other analysts also recently issued research reports about the stock. Rosenblatt Securities reiterated a "neutral" rating and issued a $300.00 price objective on shares of Cadence Design Systems in a report on Friday. Needham & Company LLC reiterated a "buy" rating and issued a $325.00 price objective on shares of Cadence Design Systems in a report on Tuesday, May 13th. Wall Street Zen downgraded shares of Cadence Design Systems from a "buy" rating to a "hold" rating in a report on Sunday, July 20th. KeyCorp reissued an "overweight" rating and issued a $358.00 price target (up previously from $340.00) on shares of Cadence Design Systems in a research note on Thursday, July 10th. Finally, Mizuho increased their price target on shares of Cadence Design Systems from $325.00 to $360.00 and gave the company an "outperform" rating in a research note on Tuesday, July 22nd. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and twelve have issued a buy rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $336.50.

Cadence Design Systems Price Performance

Shares of CDNS traded down $2.01 during mid-day trading on Monday, hitting $330.18. 309,105 shares of the company were exchanged, compared to its average volume of 2,043,461. Cadence Design Systems has a 1-year low of $221.56 and a 1-year high of $335.16. The company has a debt-to-equity ratio of 0.52, a quick ratio of 2.90 and a current ratio of 3.07. The company has a 50 day moving average of $309.39 and a 200-day moving average of $288.53. The stock has a market cap of $90.15 billion, a price-to-earnings ratio of 83.64, a price-to-earnings-growth ratio of 4.62 and a beta of 0.99.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its quarterly earnings data on Monday, April 28th. The software maker reported $1.57 EPS for the quarter, beating analysts' consensus estimates of $1.50 by $0.07. The company had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.24 billion. Cadence Design Systems had a net margin of 22.18% and a return on equity of 29.36%. Cadence Design Systems's quarterly revenue was up 23.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.17 EPS. Analysts expect that Cadence Design Systems will post 5.41 EPS for the current fiscal year.

Insider Buying and Selling

In other news, VP Paul Scannell sold 4,710 shares of the company's stock in a transaction dated Tuesday, April 29th. The shares were sold at an average price of $300.00, for a total value of $1,413,000.00. Following the completion of the sale, the vice president directly owned 28,442 shares of the company's stock, valued at approximately $8,532,600. This represents a 14.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Ita M. Brennan sold 180 shares of the company's stock in a transaction dated Tuesday, June 10th. The shares were sold at an average price of $304.00, for a total transaction of $54,720.00. Following the completion of the sale, the director directly owned 8,010 shares of the company's stock, valued at $2,435,040. The trade was a 2.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 19,795 shares of company stock valued at $6,065,087 in the last quarter. Corporate insiders own 0.37% of the company's stock.

Institutional Investors Weigh In On Cadence Design Systems

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Petros Family Wealth LLC lifted its position 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 acquiring an additional 32 shares during the period. Hemington Wealth Management lifted its holdings in shares of Cadence Design Systems by 14.0% in the second quarter. Hemington Wealth Management now owns 261 shares of the software maker's stock valued at $80,000 after purchasing an additional 32 shares in the last quarter. Legacy Capital Wealth Partners LLC lifted its holdings in shares of 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 purchasing an additional 33 shares in the last quarter. Accredited Investors Inc. lifted its holdings in shares of Cadence Design Systems by 1.7% in the fourth quarter. Accredited Investors Inc. now owns 2,176 shares of the software maker's stock valued at $654,000 after purchasing an additional 36 shares in the last quarter. Finally, Empower Advisory Group LLC lifted its holdings in shares of Cadence Design Systems by 4.1% in the first 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 in the last quarter. 84.85% of the stock is currently owned by institutional investors and hedge funds.

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.

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