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

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS) have received a consensus recommendation of “Moderate Buy” from the sixteen analysts that are covering the stock, MarketBeat Ratings 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 objective among analysts that have updated their coverage on the stock in the last year is $387.00.

A number of analysts have weighed in on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Cadence Design Systems in a research note on Thursday, July 2nd. Berenberg Bank set a $440.00 price objective on Cadence Design Systems in a report on Wednesday, May 27th. Robert W. Baird boosted their price objective on Cadence Design Systems from $381.00 to $385.00 and gave the stock an “outperform” rating in a research report on Tuesday, April 28th. Wells Fargo & Company upped their target price on Cadence Design Systems from $400.00 to $425.00 and gave the stock an “overweight” rating in a report on Tuesday, May 26th. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $360.00 target price on shares of Cadence Design Systems in a research report on Friday, April 24th.

Cadence Design Systems Price Performance

Shares of CDNS traded down $1.78 during mid-day trading on Friday, reaching $384.17. The company had a trading volume of 940,471 shares, compared to its average volume of 2,166,228. The company’s 50 day simple moving average is $374.82 and its 200 day simple moving average is $326.95. Cadence Design Systems has a 1-year low of $262.75 and a 1-year high of $416.69. 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 $105.96 billion, a price-to-earnings ratio of 89.55, a P/E/G ratio of 4.55 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS) last announced its quarterly 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 company had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.46 billion. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The firm’s revenue was up 18.6% on a year-over-year basis. During the same period in the previous year, the firm posted $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. Analysts expect that Cadence Design Systems will post 6.23 EPS for the current year.

Insider Buying and Selling

In related news, Director James D. Plummer sold 1,511 shares of the firm’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $381.34, for a total value of $576,204.74. Following the completion of the transaction, the director owned 23,264 shares in the company, valued at $8,871,493.76. This trade represents a 6.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 10,500 shares of Cadence Design Systems stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $339.00, for a total transaction of $3,559,500.00. Following the sale, the vice president owned 33,946 shares in the company, valued at approximately $11,507,694. This represents a 23.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 178,557 shares of company stock valued at $66,925,452 over the last three months. Insiders own 0.49% of the company’s stock.

Institutional Trading of Cadence Design Systems

Institutional investors have recently modified their holdings of the business. Brighton Jones LLC lifted its holdings in Cadence Design Systems by 80.2% during the 4th quarter. Brighton Jones LLC now owns 1,519 shares of the software maker’s stock worth $456,000 after buying an additional 676 shares during the period. Integrated Wealth Concepts LLC raised its position in shares of Cadence Design Systems by 3.8% during the first quarter. Integrated Wealth Concepts LLC now owns 2,203 shares of the software maker’s stock worth $560,000 after acquiring an additional 80 shares during the last quarter. Thompson Davis & CO. Inc. acquired a new position in shares of Cadence Design Systems in the second quarter worth approximately $205,000. NewEdge Advisors LLC lifted its stake in shares of Cadence Design Systems by 39.3% in the second quarter. NewEdge Advisors LLC now owns 34,787 shares of the software maker’s stock worth $10,720,000 after acquiring an additional 9,807 shares during the period. Finally, Glenview Trust co bought a new stake in Cadence Design Systems in the second quarter valued at approximately $226,000. 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.