Erste Group Bank Has Optimistic View of CDNS FY2027 Earnings

Cadence Design Systems, Inc. (NASDAQ:CDNS) – Erste Group Bank raised their FY2027 EPS estimates for shares of Cadence Design Systems in a research report issued on Wednesday, August 5th. Erste Group Bank analyst H. Engel now forecasts that the software maker will post earnings of $7.68 per share for the year, up from their previous estimate of $7.56. The consensus estimate for Cadence Design Systems’ current full-year earnings is $6.40 per share.

CDNS has been the topic of several other research reports. Morgan Stanley reaffirmed an “overweight” rating and set a $400.00 price objective on shares of Cadence Design Systems in a report on Wednesday, July 29th. Needham & Company LLC reissued a “buy” rating and issued a $400.00 target price on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Oppenheimer restated a “market perform” rating and set a $300.00 price target on shares of Cadence Design Systems in a research note on Tuesday, July 28th. KeyCorp reissued an “overweight” rating on shares of Cadence Design Systems in a report on Tuesday, July 28th. Finally, Weiss Ratings raised shares of Cadence Design Systems from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, July 30th. Thirteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $405.69.

Cadence Design Systems Price Performance

Shares of CDNS opened at $331.91 on Tuesday. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.53. Cadence Design Systems has a 1-year low of $262.75 and a 1-year high of $416.69. The stock has a market cap of $91.40 billion, a PE ratio of 65.99, a price-to-earnings-growth ratio of 3.64 and a beta of 1.15. The firm has a fifty day moving average price of $366.99 and a 200 day moving average price of $330.93.

Cadence Design Systems (NASDAQ:CDNS) last posted its earnings results on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, beating analysts’ consensus estimates of $2.05 by $0.06. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The firm had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.58 billion. During the same period last year, the firm posted $1.65 EPS. The company’s revenue was up 24.2% on a year-over-year basis. 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.

Insider Activity at Cadence Design Systems

In other news, CEO Anirudh Devgan sold 51,887 shares of Cadence Design Systems stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $370.00, for a total value of $19,198,190.00. Following the sale, the chief executive officer owned 303,525 shares of the company’s stock, valued at $112,304,250. The trade was a 14.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 7,081 shares of the business’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $393.91, for a total transaction of $2,789,276.71. Following the transaction, the vice president owned 32,181 shares in the company, valued at approximately $12,676,417.71. This trade represents a 18.04% 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 140,557 shares of company stock worth $54,631,737 in the last 90 days. Corporate insiders own 0.49% of the company’s stock.

Institutional Investors Weigh In On Cadence Design Systems

A number of institutional investors have recently added to or reduced their stakes in CDNS. Brighton Jones LLC lifted its holdings in shares of Cadence Design Systems by 80.2% in the 4th quarter. Brighton Jones LLC now owns 1,519 shares of the software maker’s stock valued at $456,000 after buying an additional 676 shares during the period. Integrated Wealth Concepts LLC raised its position in Cadence Design Systems by 3.8% in 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 in the last quarter. Thompson Davis & CO. Inc. purchased a new position in Cadence Design Systems in the second quarter worth $205,000. NewEdge Advisors LLC lifted its holdings in Cadence Design Systems by 39.3% in the second quarter. NewEdge Advisors LLC now owns 34,787 shares of the software maker’s stock valued at $10,720,000 after acquiring an additional 9,807 shares during the period. Finally, Glenview Trust co acquired a new stake in Cadence Design Systems in the second quarter valued at $226,000. Hedge funds and other 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.