Cadence Design Systems, Inc. (NASDAQ:CDNS) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Cadence Design Systems, Inc. (NASDAQ:CDNS) has been given a consensus rating of “Moderate Buy” by the sixteen ratings firms that are covering the company, Marketbeat reports. Three investment analysts have rated the stock with a hold recommendation and thirteen have given a buy recommendation to the company. The average 12-month price target among brokers that have covered the stock in the last year is $405.6875.

A number of research firms recently weighed in on CDNS. Berenberg Bank set a $440.00 target price on shares of Cadence Design Systems in a research note on Wednesday, May 27th. Oppenheimer reiterated a “market perform” rating and issued a $300.00 price target on shares of Cadence Design Systems in a research note on Tuesday, July 28th. Stifel Nicolaus raised their price target on Cadence Design Systems from $395.00 to $432.00 and gave the company a “buy” rating in a report on Tuesday, June 9th. Wall Street Zen upgraded Cadence Design Systems from a “hold” rating to a “buy” rating in a research report on Saturday, August 1st. Finally, Bank of America upped their price objective on Cadence Design Systems from $400.00 to $420.00 and gave the stock a “buy” rating in a research note on Tuesday, July 28th.

Cadence Design Systems Price Performance

NASDAQ CDNS opened at $340.39 on Monday. The company has a current ratio of 1.74, a quick ratio of 1.53 and a debt-to-equity ratio of 0.36. Cadence Design Systems has a 12 month low of $262.75 and a 12 month high of $416.69. The stock has a market cap of $93.74 billion, a price-to-earnings ratio of 67.67, a PEG ratio of 3.65 and a beta of 1.15. The company’s 50 day moving average is $348.17 and its two-hundred day moving average is $333.56.

Cadence Design Systems (NASDAQ:CDNS) last posted its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share for the quarter, topping analysts’ consensus estimates of $2.05 by $0.06. The business had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.58 billion. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The company’s revenue was up 24.2% on a year-over-year basis. During the same period in the prior year, the business posted $1.65 earnings per share. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS. As a group, research analysts anticipate that Cadence Design Systems will post 6.4 earnings per share for the current year.

Insider Activity at Cadence Design Systems

In related news, VP Paul Cunningham sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $323.32, for a total value of $646,640.00. Following the transaction, the vice president directly owned 124,586 shares of the company’s stock, valued at approximately $40,281,145.52. The trade was a 1.58% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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 stock was sold at an average price of $387.45, for a total value of $69,741.00. Following the completion of the transaction, the director owned 8,004 shares of the company’s stock, valued at $3,101,149.80. The trade was a 2.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 32,226 shares of company stock worth $12,947,681 in the last three months. Corporate insiders own 0.49% of the company’s stock.

Hedge Funds Weigh In On Cadence Design Systems

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Whipplewood Advisors LLC lifted its stake in Cadence Design Systems by 933.3% in the 1st quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker’s stock worth $26,000 after purchasing an additional 84 shares in the last quarter. Brown Lisle Cummings Inc. grew its position in shares of Cadence Design Systems by 860.0% during the first quarter. Brown Lisle Cummings Inc. now owns 96 shares of the software maker’s stock valued at $27,000 after purchasing an additional 86 shares in the last quarter. University of Texas Texas AM Investment Management Co. purchased a new position in shares of Cadence Design Systems during the fourth quarter valued at about $28,000. Swiss RE Ltd. purchased a new position in shares of Cadence Design Systems during the fourth quarter valued at about $29,000. Finally, Avalon Trust Co bought a new stake in shares of Cadence Design Systems in the second quarter worth about $30,000. 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.