Erste Group Bank Brokers Boost Earnings Estimates for CDNS

Key Points

• Erste Group Bank raised its FY2027 EPS estimate for Cadence Design Systems to $7.59 from $7.56, signaling slightly improved earnings expectations. That compares with the current consensus estimate of $6.23 per share.
• Wall Street remains broadly positive on CDNS, with 14 Buy ratings and only three Holds, and an average target price of $386.59. Several firms recently lifted targets, including Stifel Nicolaus to $432 and Berenberg Bank to $440.
• Cadence also posted a strong recent quarter, reporting $1.96 EPS versus $1.91 expected and revenue of $1.47 billion, up 18.6% year over year. The company kept its FY2026 guidance at $7.85-$7.95 EPS and Q2 2026 guidance at $2.02-$2.08 EPS.

Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) - Research analysts at Erste Group Bank boosted their FY2027 earnings per share estimates for shares of Cadence Design Systems in a research note issued on Thursday, June 25th. Erste Group Bank analyst H. Engel now forecasts that the software maker will post earnings of $7.59 per share for the year, up from their previous estimate of $7.56. The consensus estimate for Cadence Design Systems' current full-year earnings is $6.23 per share.

A number of other research firms have also recently weighed in on CDNS. Berenberg Bank set a $440.00 price objective on shares of Cadence Design Systems in a research report on Wednesday, May 27th. Stifel Nicolaus lifted their target price on Cadence Design Systems from $395.00 to $432.00 and gave the stock a "buy" rating in a research report on Tuesday, June 9th. Needham & Company LLC reiterated a "buy" rating and issued a $400.00 price target on shares of Cadence Design Systems in a research note on Tuesday, April 28th. Robert W. Baird increased their price target on Cadence Design Systems from $381.00 to $385.00 and gave the company an "outperform" rating in a report on Tuesday, April 28th. Finally, Citigroup raised their price objective on Cadence Design Systems from $385.00 to $400.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Fourteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Cadence Design Systems has an average rating of "Moderate Buy" and an average target price of $386.59.

Cadence Design Systems Price Performance

CDNS opened at $372.72 on Tuesday. The company has a fifty day simple moving average of $365.55 and a 200 day simple moving average of $323.53. The firm has a market cap of $102.80 billion, a price-to-earnings ratio of 86.88, a PEG ratio of 4.47 and a beta of 1.15. Cadence Design Systems has a twelve month low of $262.75 and a twelve month high of $416.69. The company has a current ratio of 1.47, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings data on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.91 by $0.05. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The company had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter last year, the company earned $1.57 earnings per share. Cadence Design Systems's revenue for the quarter was up 18.6% on a year-over-year basis. Cadence Design Systems has set its FY 2026 guidance at 7.850-7.950 EPS and its Q2 2026 guidance at 2.020-2.080 EPS.

Insider Activity

In related news, VP Paul Cunningham sold 2,000 shares of the company's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $391.00, for a total transaction of $782,000.00. Following the sale, the vice president directly owned 126,586 shares of the company's stock, valued at approximately $49,495,126. This represents a 1.56% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita M. Brennan sold 180 shares of the company's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $387.45, for a total value of $69,741.00. Following the sale, the director directly owned 8,004 shares in the company, valued at approximately $3,101,149.80. This represents a 2.20% 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. Insiders have sold a total of 179,557 shares of company stock valued at $67,205,642 over the last three months. Company insiders own 0.49% of the company's stock.

Institutional Trading of Cadence Design Systems

Several institutional investors have recently added to or reduced their stakes in CDNS. Vanguard Group Inc. grew its position in shares of Cadence Design Systems by 1.1% during the 4th quarter. Vanguard Group Inc. now owns 27,231,070 shares of the software maker's stock valued at $8,511,888,000 after buying an additional 307,753 shares during the last quarter. State Street Corp lifted its holdings in Cadence Design Systems by 1.1% in the fourth quarter. State Street Corp now owns 12,603,368 shares of the software maker's stock worth $3,939,561,000 after acquiring an additional 135,206 shares during the last quarter. Geode Capital Management LLC boosted its stake in Cadence Design Systems by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 7,627,272 shares of the software maker's stock valued at $2,378,707,000 after acquiring an additional 92,152 shares during the period. Norges Bank acquired a new position in Cadence Design Systems in the fourth quarter valued at approximately $1,352,922,000. Finally, Van ECK Associates Corp grew its holdings in shares of Cadence Design Systems by 11.9% during the fourth quarter. Van ECK Associates Corp now owns 3,534,180 shares of the software maker's stock valued at $1,104,714,000 after purchasing an additional 376,654 shares during the last quarter. Institutional investors own 84.85% of the company's stock.

About Cadence Design Systems

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.