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

Cadence Design Systems, Inc. (NASDAQ:CDNS) has received a consensus rating of “Moderate Buy” from the seventeen ratings firms that are currently covering the firm, MarketBeat Ratings reports. Three research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $386.5882.

Several research analysts have recently weighed in on the stock. KeyCorp boosted their price objective on shares of Cadence Design Systems from $405.00 to $425.00 and gave the company an “overweight” rating in a report on Tuesday, April 28th. Stifel Nicolaus lifted their target price on shares of Cadence Design Systems from $395.00 to $432.00 and gave the stock a “buy” rating in a research report on Tuesday, June 9th. Wells Fargo & Company boosted their target price on shares of Cadence Design Systems from $400.00 to $425.00 and gave the company an “overweight” rating in a research note on Tuesday, May 26th. Morgan Stanley lowered their price target on Cadence Design Systems from $385.00 to $370.00 and set an “overweight” rating on the stock in a report on Wednesday, February 18th. Finally, Citigroup raised their price target on Cadence Design Systems from $385.00 to $400.00 and gave the stock a “buy” rating in a research note on Wednesday, April 29th.

Cadence Design Systems Price Performance

NASDAQ CDNS opened at $387.85 on Wednesday. Cadence Design Systems has a one year low of $262.75 and a one year high of $416.69. The stock has a 50-day moving average of $348.82 and a 200 day moving average of $320.05. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.47. The company has a market capitalization of $106.98 billion, a price-to-earnings ratio of 90.41, a PEG ratio of 4.67 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS) last posted its earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.91 by $0.05. The business had revenue of $1.47 billion for the quarter, compared to analysts’ expectations of $1.46 billion. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The business’s revenue for the quarter was up 18.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.57 EPS. Cadence Design Systems has set its FY 2026 guidance at 7.850-7.950 EPS and its Q2 2026 guidance at 2.020-2.080 EPS. On average, sell-side analysts forecast that Cadence Design Systems will post 6.23 EPS for the current year.

Insider Activity at Cadence Design Systems

In other Cadence Design Systems news, CFO John M. Wall sold 5,000 shares of the stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $348.71, for a total value of $1,743,550.00. Following the transaction, the chief financial officer owned 81,875 shares of the company’s stock, valued at approximately $28,550,631.25. This represents a 5.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 7,081 shares of the firm’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $393.91, for a total value of $2,789,276.71. Following the completion of the transaction, the vice president directly owned 32,181 shares in the company, valued at $12,676,417.71. The trade was a 18.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 177,557 shares of company stock valued at $66,423,642 in the last 90 days. 0.49% of the stock is owned by company insiders.

Institutional Trading of Cadence Design Systems

Several large investors have recently added to or reduced their stakes in the business. Lombard Odier Asset Management Europe Ltd grew its position in Cadence Design Systems by 30.9% during the first quarter. Lombard Odier Asset Management Europe Ltd now owns 52,941 shares of the software maker’s stock valued at $14,711,000 after buying an additional 12,495 shares during the period. Rathbones Group PLC raised its position in Cadence Design Systems by 2.7% in the first quarter. Rathbones Group PLC now owns 633,384 shares of the software maker’s stock worth $175,998,000 after acquiring an additional 16,832 shares during the period. Groupama Asset Managment raised its position in Cadence Design Systems by 5.1% in the first quarter. Groupama Asset Managment now owns 67,891 shares of the software maker’s stock worth $18,865,000 after acquiring an additional 3,286 shares during the period. Western Wealth Management LLC boosted its stake in shares of Cadence Design Systems by 63.7% during the 1st quarter. Western Wealth Management LLC now owns 1,185 shares of the software maker’s stock worth $329,000 after acquiring an additional 461 shares during the last quarter. Finally, Centaurus Financial Inc. boosted its stake in shares of Cadence Design Systems by 48.4% during the 1st quarter. Centaurus Financial Inc. now owns 917 shares of the software maker’s stock worth $255,000 after acquiring an additional 299 shares during the last quarter. 84.85% of the stock is currently owned by institutional investors.

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.