Weiss Ratings Reiterates Hold (C) Rating for Cadence Design Systems (NASDAQ:CDNS)

Key Points

• Weiss Ratings has reiterated a "hold (C)" rating for Cadence Design Systems, signaling a cautious stance on the stock's performance.
• Cadence Design Systems' shares reached $350.00 after trading up 1.3%, with an average target price across analysts set at $368.53.
• In the recent quarter, the company reported earnings of $1.65 per share, exceeding analyst estimates and reflecting a 20.2% increase in revenue compared to the previous year.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report)'s stock had its "hold (c)" rating reaffirmed by equities researchers at Weiss Ratings in a report issued on Wednesday,Weiss Ratings reports.

A number of other research analysts also recently weighed in on CDNS. Rosenblatt Securities reaffirmed a "neutral" rating and issued a $300.00 target price on shares of Cadence Design Systems in a research report on Friday, July 25th. Stifel Nicolaus lifted their price objective on shares of Cadence Design Systems from $350.00 to $395.00 and gave the company a "buy" rating in a research report on Tuesday, July 29th. KeyCorp lifted their price objective on shares of Cadence Design Systems from $358.00 to $405.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. BNP Paribas Exane began coverage on shares of Cadence Design Systems in a research report on Thursday, October 2nd. They issued an "outperform" rating and a $400.00 price objective for the company. Finally, Wall Street Zen downgraded shares of Cadence Design Systems from a "buy" rating to a "hold" rating in a research report on Sunday, September 21st. Fourteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $368.53.

Cadence Design Systems Stock Up 1.3%

Shares of NASDAQ:CDNS traded up $4.52 during midday trading on Wednesday, reaching $350.00. 1,291,860 shares of the company were exchanged, compared to its average volume of 1,978,308. Cadence Design Systems has a fifty-two week low of $221.56 and a fifty-two week high of $376.45. The company has a quick ratio of 2.67, a current ratio of 2.82 and a debt-to-equity ratio of 0.49. The stock has a fifty day simple moving average of $352.59 and a two-hundred day simple moving average of $315.59. The firm has a market cap of $95.37 billion, a PE ratio of 94.59, a P/E/G ratio of 4.63 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 earnings per share for the quarter, beating analysts' consensus estimates of $1.56 by $0.09. The business had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.25 billion. Cadence Design Systems had a net margin of 19.88% and a return on equity of 29.65%. The firm's revenue for the quarter was up 20.2% compared to the same quarter last year. During the same quarter last year, the firm earned $1.28 earnings per share. Cadence Design Systems has set its Q3 2025 guidance at 1.750-1.810 EPS. FY 2025 guidance at 6.850-6.950 EPS. As a group, sell-side analysts forecast that Cadence Design Systems will post 5.41 earnings per share for the current year.

Insider Transactions at Cadence Design Systems

In related news, VP Paul Cunningham sold 1,000 shares of the company's stock in a transaction that occurred on Wednesday, October 1st. The shares were sold at an average price of $348.27, for a total transaction of $348,270.00. Following the completion of the transaction, the vice president directly owned 99,672 shares in the company, valued at $34,712,767.44. This represents a 0.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Ita M. Brennan sold 180 shares of the company's stock in a transaction that occurred on Wednesday, September 10th. The stock was sold at an average price of $334.51, for a total transaction of $60,211.80. Following the transaction, the director owned 7,830 shares of the company's stock, valued at approximately $2,619,213.30. This represents a 2.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 10,680 shares of company stock valued at $3,729,852. Company insiders own 0.37% of the company's stock.

Hedge Funds Weigh In On Cadence Design Systems

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its position in Cadence Design Systems by 1.0% in the 2nd quarter. Vanguard Group Inc. now owns 26,595,861 shares of the software maker's stock valued at $8,195,515,000 after acquiring an additional 256,719 shares during the period. State Street Corp increased its position in Cadence Design Systems by 1.4% in the 2nd quarter. State Street Corp now owns 12,318,585 shares of the software maker's stock valued at $3,795,972,000 after acquiring an additional 172,551 shares during the period. Jennison Associates LLC increased its position in Cadence Design Systems by 3.0% in the 2nd quarter. Jennison Associates LLC now owns 9,338,102 shares of the software maker's stock valued at $2,877,536,000 after acquiring an additional 273,149 shares during the period. Geode Capital Management LLC increased its position in shares of Cadence Design Systems by 1.2% during the second quarter. Geode Capital Management LLC now owns 6,363,734 shares of the software maker's stock worth $1,952,771,000 after buying an additional 77,478 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Cadence Design Systems by 7.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,729,026 shares of the software maker's stock worth $1,202,733,000 after buying an additional 312,757 shares during the period. 84.85% of the stock is currently owned by institutional investors and hedge funds.

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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