Cadence Design Systems (NASDAQ:CDNS) Shares Down 6% – What’s Next?

Cadence Design Systems, Inc. (NASDAQ:CDNS)’s stock price was down 6% during mid-day trading on Tuesday . The stock traded as low as $323.09 and last traded at $318.4420. 316,449 shares changed hands during mid-day trading, a decline of 87% from the average session volume of 2,421,269 shares. The stock had previously closed at $338.78.

Analyst Ratings Changes

CDNS has been the topic of several research analyst reports. Stifel Nicolaus upped their price objective on Cadence Design Systems from $395.00 to $432.00 and gave the company a “buy” rating in a research note on Tuesday, June 9th. KeyCorp reaffirmed an “overweight” rating on shares of Cadence Design Systems in a report on Tuesday, July 28th. Wells Fargo & Company lifted their price objective on shares of Cadence Design Systems from $400.00 to $425.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 26th. Morgan Stanley reissued an “overweight” rating and issued a $400.00 price objective on shares of Cadence Design Systems in a research report on Wednesday, July 29th. Finally, Robert W. Baird raised their target price on shares of Cadence Design Systems from $415.00 to $420.00 and gave the stock an “outperform” rating in a research note on Tuesday, July 28th. Thirteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $405.69.

Cadence Design Systems Price Performance

The company has a quick ratio of 1.53, a current ratio of 1.74 and a debt-to-equity ratio of 0.36. The firm has a market capitalization of $84.45 billion, a price-to-earnings ratio of 60.97, a P/E/G ratio of 3.36 and a beta of 1.14. The company’s 50 day moving average is $344.53 and its 200 day moving average is $334.07.

Cadence Design Systems (NASDAQ:CDNS) last announced its quarterly earnings data 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 during 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 quarterly revenue was up 24.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $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. On average, equities research analysts anticipate that Cadence Design Systems, Inc. will post 6.4 earnings per share for the current fiscal year.

Insider Buying and Selling at Cadence Design Systems

In other news, VP Paul Scannell sold 280 shares of the business’s stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $339.00, for a total transaction of $94,920.00. Following the completion of the transaction, the vice president owned 31,720 shares of the company’s stock, valued at approximately $10,753,080. The trade was a 0.88% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita M. Brennan sold 180 shares of the firm’s stock in a transaction dated 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 sale, the director directly owned 8,004 shares in the company, valued at $3,101,149.80. This trade represents a 2.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 7,221 shares of company stock valued at $2,570,606. 0.49% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Cadence Design Systems

A number of hedge funds have recently made changes to their positions in CDNS. California State Teachers Retirement System lifted its stake in Cadence Design Systems by 37,856.6% in the 2nd quarter. California State Teachers Retirement System now owns 154,968,502 shares of the software maker’s stock valued at $58,162,778,000 after purchasing an additional 154,560,224 shares during the last quarter. State Street Corp lifted its stake in shares of Cadence Design Systems by 1.1% in the 4th quarter. State Street Corp now owns 12,603,368 shares of the software maker’s stock valued at $3,939,561,000 after acquiring an additional 135,206 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of Cadence Design Systems by 1.2% in the 4th quarter. Geode Capital Management LLC now owns 7,627,272 shares of the software maker’s stock valued at $2,378,707,000 after acquiring an additional 92,152 shares during the last quarter. Van ECK Associates Corp boosted its holdings in shares of Cadence Design Systems by 21.8% during the 2nd quarter. Van ECK Associates Corp now owns 4,889,765 shares of the software maker’s stock valued at $1,835,227,000 after acquiring an additional 874,392 shares in the last quarter. Finally, Norges Bank acquired a new stake in shares of Cadence Design Systems during the fourth quarter valued at about $1,352,922,000. 84.85% of the stock is currently owned by institutional investors and hedge funds.

Cadence Design Systems Company Profile

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.