Erste Group Bank Analysts Lift Earnings Estimates for CDNS

Cadence Design Systems, Inc. (NASDAQ:CDNS) – Equities researchers at Erste Group Bank lifted their FY2027 earnings per share (EPS) estimates for Cadence Design Systems in a note issued to investors on Wednesday, August 5th. Erste Group Bank analyst H. Engel now forecasts that the software maker will earn $7.68 per share for the year, up from their prior estimate of $7.56. The consensus estimate for Cadence Design Systems’ current full-year earnings is $6.40 per share.

A number of other brokerages also recently issued reports on CDNS. Robert W. Baird raised their price objective on Cadence Design Systems from $415.00 to $420.00 and gave the stock an “outperform” rating in a research report on Tuesday, July 28th. Wells Fargo & Company upped 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 report on Tuesday, May 26th. Oppenheimer reaffirmed a “market perform” rating and set a $300.00 target price on shares of Cadence Design Systems in a research note on Tuesday, July 28th. Piper Sandler lifted their price target on shares of Cadence Design Systems from $325.00 to $349.00 and gave the company a “neutral” rating in a research 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 research note on Thursday, July 30th. Thirteen research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $405.69.

Cadence Design Systems Stock Performance

Shares of Cadence Design Systems stock opened at $331.91 on Tuesday. The firm 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 company has a quick ratio of 1.53, a current ratio of 1.74 and a debt-to-equity ratio of 0.36. Cadence Design Systems has a 52 week low of $262.75 and a 52 week high of $416.69. The business’s fifty day simple moving average is $366.99 and its 200-day simple moving average is $330.93.

Cadence Design Systems (NASDAQ:CDNS) last issued its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 earnings per share for the quarter, topping the consensus estimate of $2.05 by $0.06. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%.The company had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.58 billion. During the same period in the prior year, the business posted $1.65 earnings per share. The firm’s revenue for the quarter was up 24.2% compared to the same quarter last year. 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.

Institutional Investors Weigh In On Cadence Design Systems

Institutional investors have recently modified their holdings of the company. Trillium Asset Management LLC purchased a new position in Cadence Design Systems in the second quarter valued at $33,262,000. Vise Technologies Inc. purchased a new stake in Cadence Design Systems during the 2nd quarter worth about $3,567,000. Algebris UK Ltd. acquired a new position in shares of Cadence Design Systems during the 2nd quarter worth about $1,227,000. E Fund Management Co. Ltd. acquired a new position in shares of Cadence Design Systems during the 2nd quarter worth about $6,412,000. Finally, Edmond DE Rothschild Holding S.A. purchased a new position in shares of Cadence Design Systems in the 2nd quarter valued at about $9,116,000. 84.85% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, Director Ita M. Brennan sold 180 shares of Cadence Design Systems stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $387.45, for a total value of $69,741.00. Following the completion of the transaction, the director owned 8,004 shares in the company, valued at $3,101,149.80. The trade was a 2.20% decrease in their ownership of the stock. The sale was disclosed in a legal 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, Director James D. Plummer sold 1,511 shares of the business’s stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $381.34, for a total transaction of $576,204.74. Following the transaction, the director owned 23,264 shares of the company’s stock, valued at $8,871,493.76. This trade represents a 6.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 140,557 shares of company stock worth $54,631,737. Corporate insiders own 0.49% 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.