Cadence Design Systems (NASDAQ:CDNS) Sets New 52-Week High – Should You Buy?

Cadence Design Systems, Inc. (NASDAQ:CDNS) shares hit a new 52-week high during mid-day trading on Friday . The company traded as high as $376.83 and last traded at $374.1470, with a volume of 455335 shares. The stock had previously closed at $358.46.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. Rosenblatt Securities restated a “buy” rating and set a $360.00 price objective on shares of Cadence Design Systems in a research report on Friday, April 24th. Stifel Nicolaus set a $395.00 price objective on Cadence Design Systems in a research report on Wednesday, February 18th. Robert W. Baird raised 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 lifted their target price on Cadence Design Systems from $375.00 to $400.00 and gave the stock an “overweight” rating in a report on Tuesday, April 28th. Finally, Morgan Stanley lowered their target price on Cadence Design Systems from $385.00 to $370.00 and set an “overweight” rating for the company in a report on Wednesday, February 18th. Fourteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $380.59.

Cadence Design Systems Stock Performance

The firm has a market capitalization of $104.72 billion, a P/E ratio of 88.49, a P/E/G ratio of 4.15 and a beta of 1.13. The stock has a fifty day simple moving average of $311.15 and a two-hundred day simple moving average of $310.74. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.47 and a quick ratio of 1.32.

Cadence Design Systems (NASDAQ:CDNS) last issued its earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share for the quarter, topping analysts’ consensus estimates of $1.91 by $0.05. The business had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.46 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The firm’s revenue for the quarter was up 18.6% on a year-over-year basis. During the same period in the previous year, the company posted $1.57 earnings per share. 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. On average, research analysts predict that Cadence Design Systems, Inc. will post 6.23 EPS for the current year.

Insider Transactions at Cadence Design Systems

In other Cadence Design Systems news, VP Paul Scannell sold 1,071 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $345.06, for a total value of $369,559.26. Following the completion of the sale, the vice president owned 32,181 shares of the company’s stock, valued at approximately $11,104,375.86. This trade represents a 3.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Wall sold 5,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $348.71, for a total value of $1,743,550.00. Following the completion of the sale, the chief financial officer directly owned 81,875 shares of the company’s stock, valued at $28,550,631.25. This trade represents a 5.76% 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. Over the last ninety days, insiders sold 41,251 shares of company stock worth $13,294,350. 0.49% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of CDNS. Y.D. More Investments Ltd purchased a new position in shares of Cadence Design Systems during the third quarter valued at approximately $26,000. Whipplewood Advisors LLC boosted its position in shares of Cadence Design Systems by 933.3% during the first quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker’s stock valued at $26,000 after buying an additional 84 shares during the last quarter. Brown Lisle Cummings Inc. boosted its position in shares of Cadence Design Systems by 860.0% during the first quarter. Brown Lisle Cummings Inc. now owns 96 shares of the software maker’s stock valued at $27,000 after buying an additional 86 shares during the last quarter. University of Texas Texas AM Investment Management Co. purchased a new position in shares of Cadence Design Systems during the fourth quarter valued at approximately $28,000. Finally, Caitlin John LLC purchased a new position in shares of Cadence Design Systems during the third quarter valued at approximately $29,000. 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.