Cadence Design Systems (NASDAQ:CDNS) Stock Rating Upgraded by Wall Street Zen

Key Points

• Cadence Design Systems has been upgraded from a "hold" to a "buy" rating by Wall Street Zen, reflecting positive market sentiment towards the company's stock.
• Several analysts have raised their price targets for Cadence, with Mizuho increasing it to $375 and Bank of America to $350, while the overall consensus rating remains a "Moderate Buy" with a target price of $364.33.
• The company reported a strong quarterly performance with $1.65 EPS and a 20.2% year-over-year revenue growth, exceeding expectations for both EPS and revenue.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

Several other research firms have also commented on CDNS. Mizuho increased their price objective on shares of 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 reaffirmed a "neutral" rating and set a $300.00 target price on shares of Cadence Design Systems in a report on Friday, July 25th. KeyCorp increased their price target on shares of Cadence Design Systems from $358.00 to $405.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 29th. Stifel Nicolaus lifted their price target 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. Finally, Loop Capital boosted their price objective on shares of Cadence Design Systems from $370.00 to $390.00 and gave the company a "buy" rating in a research report on Tuesday, July 29th. Twelve equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $364.33.

Cadence Design Systems Stock Performance

Shares of NASDAQ CDNS traded down $1.16 during midday trading on Friday, hitting $344.03. 1,718,578 shares of the stock traded hands, compared to its average volume of 2,028,734. The firm has a market capitalization of $93.74 billion, a P/E ratio of 92.98, a PEG ratio of 4.59 and a beta of 0.97. Cadence Design Systems has a one year low of $221.56 and a one year high of $376.45. The company has a debt-to-equity ratio of 0.49, a quick ratio of 2.67 and a current ratio of 2.82. The firm has a 50-day moving average of $330.24 and a two-hundred day moving average of $296.04.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings data on Monday, July 28th. The software maker reported $1.65 EPS for the quarter, topping the consensus estimate of $1.56 by $0.09. Cadence Design Systems had a return on equity of 29.65% and a net margin of 19.88%.The company had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.25 billion. During the same quarter in the previous year, the company posted $1.28 earnings per share. Cadence Design Systems's revenue 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. On average, equities analysts forecast that Cadence Design Systems will post 5.41 EPS for the current fiscal year.

Insiders Place Their Bets

In other Cadence Design Systems news, VP Paul Cunningham sold 1,000 shares of the stock in a transaction on Friday, August 1st. The stock was sold at an average price of $358.72, for a total value of $358,720.00. Following the completion of the sale, the vice president owned 104,499 shares in the company, valued at approximately $37,485,881.28. This represents a 0.95% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Ita M. Brennan sold 180 shares of the firm's stock in a transaction dated Tuesday, June 10th. The shares were sold at an average price of $304.00, for a total value of $54,720.00. Following the sale, the director directly owned 8,010 shares in the company, 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. Over the last three months, insiders sold 3,830 shares of company stock valued at $1,207,671. Corporate insiders own 0.37% of the company's stock.

Institutional Trading of Cadence Design Systems

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Norges Bank bought a new position in Cadence Design Systems in the 2nd quarter worth approximately $1,190,618,000. GAMMA Investing LLC lifted its holdings in shares of Cadence Design Systems by 31,049.1% in the first quarter. GAMMA Investing LLC now owns 1,218,241 shares of the software maker's stock worth $309,835,000 after buying an additional 1,214,330 shares in the last quarter. Nuveen LLC purchased a new position in shares of Cadence Design Systems in the first quarter worth $289,744,000. Jennison Associates LLC boosted its position in shares of Cadence Design Systems by 13.2% during the first quarter. Jennison Associates LLC now owns 9,064,953 shares of the software maker's stock worth $2,305,489,000 after acquiring an additional 1,054,702 shares during the last quarter. Finally, Assenagon Asset Management S.A. grew its stake in Cadence Design Systems by 466.4% during the second quarter. Assenagon Asset Management S.A. now owns 786,849 shares of the software maker's stock valued at $242,468,000 after acquiring an additional 647,931 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.