Cadence Design Systems (NASDAQ:CDNS) Receives “Buy” Rating from Needham & Company LLC

Needham & Company LLC restated their buy rating on shares of Cadence Design Systems (NASDAQ:CDNS) in a report released on Monday morning,Benzinga reports. The brokerage currently has a $390.00 price objective on the software maker’s stock.

Several other equities analysts have also recently issued reports on CDNS. Wolfe Research reiterated an “outperform” rating and set a $385.00 price target on shares of Cadence Design Systems in a research report on Tuesday, October 28th. Oppenheimer raised Cadence Design Systems from an “underperform” rating to a “market perform” rating and set a $275.00 target price on the stock in a report on Monday, December 1st. Wall Street Zen cut shares of Cadence Design Systems from a “buy” rating to a “hold” rating in a research report on Sunday, September 21st. Rosenblatt Securities raised their price objective on shares of Cadence Design Systems from $320.00 to $335.00 and gave the company a “neutral” rating in a research report on Tuesday, October 28th. Finally, JPMorgan Chase & Co. boosted their target price on shares of Cadence Design Systems from $390.00 to $405.00 and gave the stock an “overweight” rating in a report on Tuesday, October 28th. Fifteen research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $379.11.

Cadence Design Systems Stock Up 0.8%

Cadence Design Systems stock opened at $317.57 on Monday. Cadence Design Systems has a 52 week low of $221.56 and a 52 week high of $376.45. The stock has a market cap of $86.44 billion, a price-to-earnings ratio of 81.85, a PEG ratio of 4.05 and a beta of 1.05. The company’s 50-day moving average price is $323.75 and its two-hundred day moving average price is $331.70. The company has a current ratio of 3.05, a quick ratio of 2.84 and a debt-to-equity ratio of 0.48.

Cadence Design Systems (NASDAQ:CDNS) last posted its quarterly earnings data on Monday, October 27th. The software maker reported $1.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.79 by $0.14. Cadence Design Systems had a net margin of 20.35% and a return on equity of 30.13%. The business had revenue of $1.34 billion during the quarter, compared to analysts’ expectations of $1.32 billion. During the same period last year, the firm posted $1.64 earnings per share. The business’s revenue was up 10.1% on a year-over-year basis. Cadence Design Systems has set its FY 2025 guidance at 7.020-7.080 EPS and its Q4 2025 guidance at 1.880-1.940 EPS. On average, analysts expect that Cadence Design Systems will post 5.41 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CFO John M. Wall sold 27,805 shares of Cadence Design Systems stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $318.57, for a total value of $8,857,838.85. Following the transaction, the chief financial officer directly owned 69,957 shares of the company’s stock, valued at $22,286,201.49. This trade represents a 28.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Ita M. Brennan sold 180 shares of the business’s stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $337.48, for a total transaction of $60,746.40. Following the sale, the director owned 7,650 shares in the company, valued at $2,581,722. This represents a 2.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 69,525 shares of company stock valued at $23,021,216. Company insiders own 0.37% of the company’s stock.

Institutional Trading of Cadence Design Systems

Several hedge funds and other institutional investors have recently modified their holdings of CDNS. Brighton Jones LLC raised its position in Cadence Design Systems by 80.2% during the fourth 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. Algert Global LLC acquired a new position in shares of Cadence Design Systems in the 1st quarter valued at about $518,000. T. Rowe Price Investment Management Inc. purchased a new stake in shares of Cadence Design Systems in the first quarter worth approximately $11,578,000. AlphaQuest LLC boosted its holdings in shares of Cadence Design Systems by 60.1% during the first quarter. AlphaQuest LLC now owns 1,678 shares of the software maker’s stock worth $427,000 after purchasing an additional 630 shares during the period. Finally, Quantitative Investment Management LLC acquired a new stake in shares of Cadence Design Systems during the first quarter worth approximately $431,000. Institutional investors and hedge funds 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.