Needham & Company LLC Reaffirms Buy Rating for Cadence Design Systems (NASDAQ:CDNS)

Key Points

• Needham & Company LLC has raised its target price for Cadence Design Systems from $325.00 to $390.00, indicating a potential upside of 16.85% from its current price and maintaining a "buy" rating.
• During the last quarter, Cadence Design Systems reported $1.65 EPS, surpassing analysts' expectations of $1.56, with a revenue increase of 20.2% year-over-year.
• Despite having a consensus rating of "Moderate Buy," various analysts have also adjusted their ratings, with some increasing target prices and others downgrading to "hold" or "neutral" ratings.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report)'s stock had its "buy" rating reaffirmed by equities researchers at Needham & Company LLC in a report issued on Tuesday, Marketbeat reports. They currently have a $390.00 price target on the software maker's stock, up from their previous price target of $325.00. Needham & Company LLC's target price would suggest a potential upside of 5.11% from the stock's previous close.

Several other equities research analysts also recently issued reports on the stock. Wall Street Zen downgraded shares of Cadence Design Systems from a "buy" rating to a "hold" rating in a research report on Sunday, July 20th. Robert W. Baird increased their target price on shares of Cadence Design Systems from $340.00 to $380.00 and gave the stock an "outperform" rating in a report on Monday. Mizuho increased their target price on shares of Cadence Design Systems from $360.00 to $375.00 and gave the stock an "outperform" rating in a report on Tuesday. Bank of America increased their target price on shares of Cadence Design Systems from $320.00 to $350.00 and gave the stock a "buy" rating in a report on Tuesday, April 29th. Finally, Piper Sandler restated a "neutral" rating and set a $355.00 target price (up previously from $328.00) on shares of Cadence Design Systems in a report on Tuesday. One analyst has rated the stock with a sell rating, three have given a hold rating and twelve have given a buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $359.00.

Cadence Design Systems Stock Up 1.3%

Shares of CDNS stock opened at $371.03 on Tuesday. The firm has a fifty day moving average of $311.64 and a 200-day moving average of $289.87. The company has a quick ratio of 2.90, a current ratio of 2.82 and a debt-to-equity ratio of 0.49. Cadence Design Systems has a 12-month low of $221.56 and a 12-month high of $374.05. The company has a market capitalization of $101.31 billion, a price-to-earnings ratio of 100.28, a P/E/G ratio of 5.09 and a beta of 0.99.

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, topping the consensus estimate of $1.56 by $0.09. Cadence Design Systems had a net margin of 19.88% and a return on equity of 29.65%. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.25 billion. During the same quarter in the prior year, the firm earned $1.28 earnings per share. The firm's revenue was up 20.2% compared to the same quarter last year. As a group, equities research analysts predict that Cadence Design Systems will post 5.41 earnings per share for the current fiscal year.

Insider Buying and Selling at Cadence Design Systems

In other news, Director James D. Plummer sold 868 shares of the company's stock in a transaction on Friday, May 16th. The shares were sold at an average price of $319.95, for a total value of $277,716.60. Following the completion of the sale, the director owned 23,996 shares in the company, valued at $7,677,520.20. This represents a 3.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Anirudh Devgan sold 10,737 shares of the company's stock in a transaction on Friday, May 2nd. The stock was sold at an average price of $310.00, for a total transaction of $3,328,470.00. Following the completion of the sale, the chief executive officer owned 209,548 shares of the company's stock, valued at approximately $64,959,880. The trade was a 4.87% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 14,435 shares of company stock worth $4,455,137. Company insiders own 1.99% of the company's stock.

Hedge Funds Weigh In On Cadence Design Systems

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Paragon Advisors LLC lifted its holdings in Cadence Design Systems by 16.7% during the second quarter. Paragon Advisors LLC now owns 8,969 shares of the software maker's stock valued at $2,764,000 after purchasing an additional 1,285 shares during the last quarter. Bleakley Financial Group LLC lifted its holdings in Cadence Design Systems by 1.1% during the second quarter. Bleakley Financial Group LLC now owns 13,499 shares of the software maker's stock valued at $4,160,000 after purchasing an additional 146 shares during the last quarter. Ethic Inc. lifted its holdings in Cadence Design Systems by 4.9% during the second quarter. Ethic Inc. now owns 26,255 shares of the software maker's stock valued at $8,013,000 after purchasing an additional 1,221 shares during the last quarter. Caliber Wealth Management LLC KS lifted its holdings in Cadence Design Systems by 105.5% during the second quarter. Caliber Wealth Management LLC KS now owns 4,985 shares of the software maker's stock valued at $1,536,000 after purchasing an additional 2,559 shares during the last quarter. Finally, Brookstone Capital Management lifted its holdings in Cadence Design Systems by 32.3% during the second quarter. Brookstone Capital Management now owns 23,057 shares of the software maker's stock valued at $7,105,000 after purchasing an additional 5,627 shares during the last quarter. 84.85% of the stock is owned by hedge funds and other institutional investors.

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.