Cadence Design Systems (NASDAQ:CDNS) Upgraded to “Buy” at Wall Street Zen

Cadence Design Systems (NASDAQ:CDNS) was upgraded by analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a report issued on Saturday.

Several other research analysts have also issued reports on CDNS. Mizuho increased their price target on Cadence Design Systems from $360.00 to $375.00 and gave the stock an “outperform” rating in a report on Tuesday, July 29th. Rosenblatt Securities reiterated a “neutral” rating and issued a $300.00 price target on shares of Cadence Design Systems in a report on Friday, July 25th. Bank of America increased their price objective on Cadence Design Systems from $320.00 to $350.00 and gave the stock a “buy” rating in a research note on Tuesday, April 29th. Piper Sandler reissued a “neutral” rating and issued a $355.00 price objective (up from $328.00) on shares of Cadence Design Systems in a research note on Tuesday, July 29th. Finally, Berenberg Bank set a $400.00 price objective on Cadence Design Systems in a research note on Wednesday, July 30th. Twelve research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $364.33.

Cadence Design Systems Stock Up 0.6%

Shares of NASDAQ:CDNS opened at $349.63 on Friday. The business’s 50 day simple moving average is $329.35 and its two-hundred day simple moving average is $295.82. The firm has a market cap of $95.27 billion, a P/E ratio of 94.49, a PEG ratio of 4.56 and a beta of 0.97. The company has a debt-to-equity ratio of 0.49, a quick ratio of 2.67 and a current ratio of 2.82. Cadence Design Systems has a 52-week low of $221.56 and a 52-week high of $376.45.

Cadence Design Systems (NASDAQ:CDNS) last announced its quarterly earnings results 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. The business had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.25 billion. Cadence Design Systems had a return on equity of 29.65% and a net margin of 19.88%.The company’s quarterly revenue was up 20.2% on a year-over-year basis. During the same quarter in the prior year, the company 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, research analysts forecast that Cadence Design Systems will post 5.41 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Ita M. Brennan sold 180 shares of the stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $304.00, for a total transaction of $54,720.00. Following the completion of the sale, the director directly owned 8,010 shares of the company’s stock, valued at approximately $2,435,040. This trade represents a 2.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Paul Cunningham sold 1,000 shares of the stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $358.72, for a total value of $358,720.00. Following the sale, the vice president directly owned 104,499 shares of the company’s stock, valued at $37,485,881.28. The trade was a 0.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 3,830 shares of company stock valued at $1,207,671 over the last ninety days. 1.99% of the stock is currently owned by company insiders.

Institutional Trading of Cadence Design Systems

Institutional investors and hedge funds have recently modified their holdings of the business. Norges Bank purchased a new stake in Cadence Design Systems in the second quarter worth $1,190,618,000. GAMMA Investing LLC increased its position in Cadence Design Systems by 31,049.1% in the first quarter. GAMMA Investing LLC now owns 1,218,241 shares of the software maker’s stock worth $309,835,000 after buying an additional 1,214,330 shares during the last quarter. Nuveen LLC purchased a new stake in Cadence Design Systems in the first quarter worth $289,744,000. Jennison Associates LLC increased its position in Cadence Design Systems by 13.2% in the first quarter. Jennison Associates LLC now owns 9,064,953 shares of the software maker’s stock worth $2,305,489,000 after buying an additional 1,054,702 shares during the last quarter. Finally, Assenagon Asset Management S.A. increased its position in Cadence Design Systems by 466.4% in the second quarter. Assenagon Asset Management S.A. now owns 786,849 shares of the software maker’s stock worth $242,468,000 after buying an additional 647,931 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.