Loop Capital Increases Cadence Design Systems (NASDAQ:CDNS) Price Target to $390.00

Key Points

• Loop Capital has raised its price target for Cadence Design Systems (NASDAQ:CDNS) from $370.00 to $390.00, indicating a potential upside of 7.16% based on current stock performance.
• Three other brokerages also adjusted their price targets for Cadence, with prices ranging from $355.00 to $395.00, reflecting a generally positive outlook despite some mixed ratings.
• Cadence Design Systems recently reported earnings of $1.65 EPS, surpassing analyst expectations and showing a significant 20.2% year-over-year revenue growth.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) had its price objective hoisted by equities researchers at Loop Capital from $370.00 to $390.00 in a research report issued on Tuesday,Benzinga reports. The brokerage presently has a "buy" rating on the software maker's stock. Loop Capital's price target indicates a potential upside of 7.16% from the stock's previous close.

CDNS has been the subject of a number of other reports. Mizuho lifted their target price 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. Stifel Nicolaus lifted their target price 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. Piper Sandler reiterated 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. Rosenblatt Securities reissued a "neutral" rating and set a $300.00 price target on shares of Cadence Design Systems in a research report on Friday. Finally, Wall Street Zen lowered shares of Cadence Design Systems from a "buy" rating to a "hold" rating in a research report on Sunday, July 20th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and twelve have assigned a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $359.00.

Cadence Design Systems Stock Up 9.0%

Cadence Design Systems stock traded up $30.19 during midday trading on Tuesday, reaching $363.95. The company's stock had a trading volume of 3,137,858 shares, compared to its average volume of 2,067,612. The stock's 50-day simple moving average is $309.66 and its 200-day simple moving average is $288.77. The company has a debt-to-equity ratio of 0.52, a current ratio of 3.07 and a quick ratio of 2.90. Cadence Design Systems has a 52-week low of $221.56 and a 52-week high of $370.61. The stock has a market capitalization of $99.37 billion, a P/E ratio of 92.15, a PEG ratio of 4.62 and a beta of 0.99.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its earnings results on Monday, July 28th. The software maker reported $1.65 EPS for the quarter, topping 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 net margin of 22.18% and a return on equity of 29.36%. Cadence Design Systems's revenue for the quarter was up 20.2% on a year-over-year basis. During the same period last year, the business earned $1.28 EPS. On average, sell-side analysts expect that Cadence Design Systems will post 5.41 EPS for the current year.

Insider Activity

In other news, VP Paul Cunningham sold 1,000 shares of Cadence Design Systems stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $306.35, for a total transaction of $306,350.00. Following the completion of the transaction, the vice president directly owned 105,499 shares of the company's stock, valued at $32,319,618.65. The trade was a 0.94% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Ita M. Brennan sold 180 shares of the business's stock in a transaction on Tuesday, June 10th. The stock was 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 approximately $2,435,040. The trade was a 2.20% decrease in their position. The disclosure for this sale can be found here. Insiders sold 15,085 shares of company stock valued at $4,652,087 in the last quarter. Company insiders own 0.37% of the company's stock.

Institutional Investors Weigh In On Cadence Design Systems

Several institutional investors and hedge funds have recently added to or reduced their stakes in CDNS. GAMMA Investing LLC increased its holdings in Cadence Design Systems by 31,049.1% in the 1st quarter. GAMMA Investing LLC now owns 1,218,241 shares of the software maker's stock worth $309,835,000 after acquiring an additional 1,214,330 shares in the last quarter. Nuveen LLC purchased a new stake in Cadence Design Systems in the 1st quarter worth $289,744,000. Jennison Associates LLC increased its holdings in Cadence Design Systems by 13.2% in the 1st 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 in the last quarter. Assenagon Asset Management S.A. increased its holdings in Cadence Design Systems by 466.4% in the 2nd quarter. Assenagon Asset Management S.A. now owns 786,849 shares of the software maker's stock worth $242,468,000 after acquiring an additional 647,931 shares in the last quarter. Finally, FMR LLC increased its holdings in Cadence Design Systems by 8.7% in the 4th quarter. FMR LLC now owns 7,978,652 shares of the software maker's stock worth $2,397,266,000 after acquiring an additional 639,146 shares in the last quarter. Hedge funds and other 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.

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