Cadence Design Systems (NASDAQ:CDNS) Rating Lowered to “Hold” at Wall Street Zen

Cadence Design Systems (NASDAQ:CDNS) was downgraded by investment analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday, Wall Street Zen reports.

Several other equities analysts have also recently commented on CDNS. Benchmark restated a “buy” rating on shares of Cadence Design Systems in a research report on Tuesday, July 28th. The Goldman Sachs Group raised their price target on Cadence Design Systems from $410.00 to $470.00 and gave the company a “buy” rating in a report on Monday, July 13th. Morgan Stanley reaffirmed an “overweight” rating and issued a $400.00 price target (up from $370.00) on shares of Cadence Design Systems in a report on Wednesday, July 29th. Oppenheimer reiterated a “market perform” rating and set a $300.00 price target (up from $275.00) on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Finally, KeyCorp reissued an “overweight” rating on shares of Cadence Design Systems in a report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $404.14.

Cadence Design Systems Stock Up 1.9%

Shares of NASDAQ:CDNS opened at $326.07 on Tuesday. The firm has a fifty day moving average price of $318.64 and a two-hundred day moving average price of $340.27. 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 one year low of $262.75 and a one year high of $416.69. The company has a market cap of $89.80 billion, a price-to-earnings ratio of 51.93, a PEG ratio of 3.42 and a beta of 1.13.

Cadence Design Systems (NASDAQ:CDNS) last released its quarterly 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 during the quarter, compared to analyst estimates of $1.58 billion. During the same period in the previous year, the business earned $1.65 EPS. The business’s revenue for the quarter 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. Analysts anticipate that Cadence Design Systems will post 6.41 EPS for the current fiscal year.

Insider Transactions at Cadence Design Systems

In other news, Director Ita Brennan sold 180 shares of the stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $285.51, for a total transaction of $51,391.80. Following the transaction, the director directly owned 7,824 shares in the company, valued at approximately $2,233,830.24. This represents a 2.25% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 280 shares of the firm’s stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $339.00, for a total value of $94,920.00. Following the transaction, the vice president directly owned 31,720 shares in the company, valued at approximately $10,753,080. This represents a 0.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 8,960 shares of company stock valued at $2,834,139 over the last quarter. 0.49% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Van ECK Associates Corp lifted its holdings in shares of Cadence Design Systems by 21.8% in the 2nd quarter. Van ECK Associates Corp now owns 4,889,765 shares of the software maker’s stock worth $1,835,227,000 after acquiring an additional 874,392 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Cadence Design Systems by 1.5% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,385,655 shares of the software maker’s stock valued at $1,270,704,000 after purchasing an additional 48,937 shares in the last quarter. Assenagon Asset Management S.A. grew its holdings in shares of Cadence Design Systems by 1,097.5% during the 3rd quarter. Assenagon Asset Management S.A. now owns 2,818,141 shares of the software maker’s stock valued at $930,522,000 after purchasing an additional 2,582,812 shares during the last quarter. Legal & General Group Plc bought a new position in shares of Cadence Design Systems during the 2nd quarter valued at $702,615,000. Finally, Jupiter Topco LLC purchased a new position in Cadence Design Systems in the 2nd quarter worth $688,746,000. 84.85% of the stock is currently owned by institutional investors.

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.