JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Cadence Design Systems (NASDAQ:CDNS) Stock

Key Points

• JPMorgan Chase & Co. has increased its price target for Cadence Design Systems (NASDAQ:CDNS) from $330.00 to $390.00, suggesting a potential upside of 6.87% from the stock's current price.
• Cadence Design Systems reported earnings of $1.65 per share, exceeding analyst expectations, with revenue of $1.28 billion for the quarter, marking a 20.2% increase year-over-year.
• The stock currently has a consensus rating of "Moderate Buy" from analysts, with twelve buy ratings and only one sell rating issued.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) had its price objective raised by equities researchers at JPMorgan Chase & Co. from $330.00 to $390.00 in a research note issued on Tuesday,Benzinga reports. The brokerage currently has an "overweight" rating on the software maker's stock. JPMorgan Chase & Co.'s price objective would suggest a potential upside of 6.87% from the stock's current price.

A number of other brokerages have also weighed in on CDNS. Robert W. Baird raised their target price on Cadence Design Systems from $340.00 to $380.00 and gave the company an "outperform" rating in a research note on Monday. Piper Sandler restated a "neutral" rating and issued a $355.00 target price (up from $328.00) on shares of Cadence Design Systems in a research note on Tuesday. Bank of America raised their target price on Cadence Design Systems from $320.00 to $350.00 and gave the company a "buy" rating in a research note on Tuesday, April 29th. Rosenblatt Securities restated a "neutral" rating and issued a $300.00 target price on shares of Cadence Design Systems in a research note on Friday. Finally, Needham & Company LLC lifted their price objective on Cadence Design Systems from $325.00 to $390.00 and gave the stock a "buy" rating in a research report on Tuesday. One research analyst has rated the stock with a sell rating, three have issued a hold rating and twelve have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $357.67.

Cadence Design Systems Price Performance

Shares of NASDAQ CDNS traded up $31.17 during midday trading on Tuesday, reaching $364.93. 2,831,781 shares of the company traded hands, compared to its average volume of 2,065,628. The firm has a market cap of $99.64 billion, a PE ratio of 92.36, a PEG ratio of 4.62 and a beta of 0.99. The stock's 50-day simple moving average is $309.66 and its 200-day simple moving average is $288.77. Cadence Design Systems has a 12 month low of $221.56 and a 12 month high of $370.61. The company has a debt-to-equity ratio of 0.52, a quick ratio of 2.90 and a current ratio of 3.07.

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, beating analysts' consensus estimates of $1.56 by $0.09. The company had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.25 billion. Cadence Design Systems had a return on equity of 29.36% and a net margin of 22.18%. The business's revenue was up 20.2% on a year-over-year basis. During the same period last year, the business earned $1.28 earnings per share. As a group, equities analysts anticipate that Cadence Design Systems will post 5.41 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Cadence Design Systems news, CEO Anirudh Devgan sold 10,737 shares of the business's stock in a transaction that occurred on Friday, May 2nd. The stock was sold at an average price of $310.00, for a total value of $3,328,470.00. Following the sale, the chief executive officer owned 209,548 shares in the company, valued at approximately $64,959,880. The trade was a 4.87% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Paul Cunningham sold 1,000 shares of the business's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $306.35, for a total value of $306,350.00. Following the completion of the sale, the vice president owned 105,499 shares in the company, valued at $32,319,618.65. The trade was a 0.94% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 15,085 shares of company stock worth $4,652,087. Company insiders own 0.37% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Smallwood Wealth Investment Management LLC acquired a new position in shares of Cadence Design Systems during the 1st quarter worth approximately $25,000. Costello Asset Management INC bought a new stake in shares of Cadence Design Systems during the 1st quarter valued at $25,000. Saudi Central Bank bought a new stake in shares of Cadence Design Systems during the 1st quarter valued at $27,000. Valley National Advisers Inc. lifted its position in shares of Cadence Design Systems by 707.1% during the 1st quarter. Valley National Advisers Inc. now owns 113 shares of the software maker's stock valued at $28,000 after acquiring an additional 99 shares during the period. Finally, Barrett & Company Inc. bought a new stake in shares of Cadence Design Systems during the 2nd quarter worth $31,000. Institutional investors and hedge funds own 84.85% of the company's stock.

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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