Cadence Design Systems (NASDAQ:CDNS) Cut to Hold at Wall Street Zen

Wall Street Zen lowered shares of Cadence Design Systems (NASDAQ:CDNS) from a buy rating to a hold rating in a research note published on Tuesday,Wall Street Zen reports.

Other analysts have also recently issued research reports about the stock. KeyCorp restated an “overweight” rating on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Rosenblatt Securities raised their price objective on Cadence Design Systems from $410.00 to $420.00 and gave the company a “buy” rating in a report on Tuesday, July 28th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $420.00 target price (up from $400.00) on shares of Cadence Design Systems in a research report on Wednesday, October 7th. Benchmark reaffirmed a “buy” rating on shares of Cadence Design Systems in a research note on Tuesday, July 28th. Finally, Bank of America lifted their price target on shares of Cadence Design Systems from $400.00 to $420.00 and gave the stock a “buy” rating in a research note on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $404.14.

Cadence Design Systems Trading Down 5.0%

Cadence Design Systems stock opened at $309.65 on Tuesday. The stock has a market cap of $85.27 billion, a P/E ratio of 52.93, a PEG ratio of 3.49 and a beta of 1.13. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.53 and a current ratio of 1.74. The firm’s fifty day moving average price is $318.35 and its 200-day moving average price is $340.48. Cadence Design Systems has a fifty-two week low of $262.75 and a fifty-two week high of $416.69.

Cadence Design Systems (NASDAQ:CDNS) last released its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share for the quarter, beating the consensus estimate of $2.05 by $0.06. The firm had revenue of $1.58 billion for the quarter, compared to analysts’ expectations of $1.58 billion. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%. The company’s revenue was up 24.2% compared to the same quarter last year. During the same quarter last year, the firm posted $1.65 EPS. 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. Equities research analysts forecast that Cadence Design Systems will post 6.42 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Cadence Design Systems news, VP Paul Cunningham sold 2,000 shares of the firm’s stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $324.13, for a total value of $648,260.00. Following the sale, the vice president owned 119,612 shares of the company’s stock, valued at $38,769,837.56. This trade represents a 1.64% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the business’s stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $350.07, for a total transaction of $437,587.50. Following the completion of the transaction, the director owned 39,544 shares in the company, valued at $13,843,168.08. The trade was a 3.06% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 8,960 shares of company stock worth $2,834,139. Company insiders own 0.49% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of CDNS. Yousif Capital Management LLC raised its position in Cadence Design Systems by 0.5% during the 3rd quarter. Yousif Capital Management LLC now owns 26,272 shares of the software maker’s stock valued at $8,675,000 after purchasing an additional 121 shares during the last quarter. Andrew Hill Investment Advisors Inc. bought a new stake in Cadence Design Systems in the third quarter valued at $2,639,000. Boomfish Wealth Group LLC boosted its holdings in Cadence Design Systems by 5.6% in the third quarter. Boomfish Wealth Group LLC now owns 2,024 shares of the software maker’s stock valued at $668,000 after acquiring an additional 107 shares in the last quarter. MBL Wealth LLC bought a new stake in Cadence Design Systems in the third quarter valued at $452,000. Finally, Brookstone Capital Management increased its position in Cadence Design Systems by 14.6% during the 3rd quarter. Brookstone Capital Management now owns 2,445 shares of the software maker’s stock valued at $807,000 after purchasing an additional 312 shares during the period. Hedge funds and other institutional investors own 84.85% of the company’s stock.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc develops computational software, hardware, and semiconductor intellectual property used to design and verify electronic systems and integrated circuits. Its electronic design automation (EDA) solutions support chip development across areas such as digital and custom IC design, functional verification, emulation, prototyping, and system analysis.

The company also provides semiconductor IP, including processor cores, interconnect technologies, memory interfaces, and other building blocks that help customers develop complex chips.