Cadence Design Systems, Inc. (NASDAQ:CDNS) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Cadence Design Systems has a “Moderate Buy” consensus rating from 16 analysts, including 13 buy ratings and three holds. The average 12-month price target is $405.69, above the reported share price of $340.39.
• The company reported quarterly EPS of $2.11, exceeding the $2.05 analyst consensus, while revenue reached $1.58 billion and rose 24.2% year over year. Cadence provided fiscal 2026 EPS guidance of $8.05–$8.15.
• Insiders sold 32,226 shares worth approximately $12.95 million over the past 90 days, while institutional investors remain dominant shareholders, owning 84.85% of CDNS stock.

Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the sixteen ratings firms that are covering the firm, MarketBeat Ratings reports. Three research analysts have rated the stock with a hold recommendation and thirteen have assigned a buy recommendation to the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $405.6875.

A number of brokerages recently issued reports on CDNS. Berenberg Bank set a $440.00 price objective on Cadence Design Systems in a research report on Wednesday, May 27th. Robert W. Baird upped their target price on Cadence Design Systems from $415.00 to $420.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 28th. Stifel Nicolaus lifted their price target on Cadence Design Systems from $395.00 to $432.00 and gave the company a "buy" rating in a research report on Tuesday, June 9th. Morgan Stanley reiterated an "overweight" rating and set a $400.00 target price on shares of Cadence Design Systems in a research report on Wednesday, July 29th. Finally, Wells Fargo & Company increased their price target on shares of Cadence Design Systems from $400.00 to $425.00 and gave the stock an "overweight" rating in a report on Tuesday, May 26th.

Insider Activity

In other Cadence Design Systems news, VP Paul Cunningham sold 2,000 shares of the company's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $323.32, for a total value of $646,640.00. Following the completion of the sale, the vice president owned 124,586 shares of the company's stock, valued at $40,281,145.52. This represents a 1.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Vincentelli Albert Sangiovanni sold 1,250 shares of the stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $320.88, for a total transaction of $401,100.00. Following the transaction, the director owned 40,794 shares in the company, valued at $13,089,978.72. The trade was a 2.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 32,226 shares of company stock valued at $12,947,681. 0.49% of the stock is owned by insiders.

Institutional Investors Weigh In On Cadence Design Systems

A number of institutional investors have recently made changes to their positions in CDNS. Pinnacle Wealth Management Advisory Group LLC increased its stake in shares of Cadence Design Systems by 3.1% in the 1st quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,033 shares of the software maker's stock worth $287,000 after purchasing an additional 31 shares in the last quarter. Westfuller Advisors LLC lifted its position in Cadence Design Systems by 8.2% during the first quarter. Westfuller Advisors LLC now owns 408 shares of the software maker's stock valued at $113,000 after purchasing an additional 31 shares in the last quarter. Cornerstone Planning Group LLC lifted its position in Cadence Design Systems by 32.0% during the first quarter. Cornerstone Planning Group LLC now owns 132 shares of the software maker's stock valued at $37,000 after purchasing an additional 32 shares in the last quarter. KCM Investment Advisors LLC grew its holdings in Cadence Design Systems by 0.4% during the first quarter. KCM Investment Advisors LLC now owns 8,013 shares of the software maker's stock valued at $2,227,000 after purchasing an additional 32 shares during the period. Finally, Fulton Bank N.A. grew its holdings in Cadence Design Systems by 2.6% during the second quarter. Fulton Bank N.A. now owns 1,296 shares of the software maker's stock valued at $486,000 after purchasing an additional 33 shares during the period. Hedge funds and other institutional investors own 84.85% of the company's stock.

Cadence Design Systems Price Performance

CDNS stock opened at $340.39 on Monday. The firm has a 50 day moving average of $348.17 and a 200-day moving average of $333.56. The company has a current ratio of 1.74, a quick ratio of 1.53 and a debt-to-equity ratio of 0.36. Cadence Design Systems has a 12 month low of $262.75 and a 12 month high of $416.69. The firm has a market capitalization of $93.74 billion, a P/E ratio of 67.67, a price-to-earnings-growth ratio of 3.65 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share for the quarter, topping analysts' consensus estimates of $2.05 by $0.06. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The business had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.58 billion. During the same quarter in the prior year, the firm posted $1.65 EPS. Cadence Design Systems's revenue was up 24.2% on a year-over-year basis. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS. As a group, sell-side analysts predict that Cadence Design Systems will post 6.4 earnings per share for the current fiscal year.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc NASDAQ: CDNS is a global provider of electronic design automation (EDA) software, hardware and intellectual property used to design and verify advanced semiconductor chips, systems-on-chip (SoCs), printed circuit boards (PCBs) and packaging. Headquartered in San Jose, California and founded in 1988, Cadence serves semiconductor companies, original equipment manufacturers and system designers across the globe, helping customers accelerate design cycles and manage the complexity of modern integrated systems.

The company's offerings span software tools for digital, custom/analog and mixed-signal design, verification and signoff, as well as solutions for system-level modeling, thermal and signal integrity analysis, and PCB and package design.

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