Erste Group Bank Has Weak Forecast for CDNS FY2027 Earnings

Cadence Design Systems, Inc. (NASDAQ:CDNS) – Equities research analysts at Erste Group Bank lowered their FY2027 EPS estimates for shares of Cadence Design Systems in a report released on Wednesday, July 15th. Erste Group Bank analyst H. Engel now expects that the software maker will post earnings per share of $7.56 for the year, down from their prior forecast of $7.59. The consensus estimate for Cadence Design Systems’ current full-year earnings is $6.23 per share.

Cadence Design Systems (NASDAQ:CDNS) last issued its quarterly earnings data on Monday, April 27th. The software maker reported $1.96 EPS for the quarter, topping analysts’ consensus estimates of $1.91 by $0.05. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The business had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.46 billion. During the same period last year, the business posted $1.57 earnings per share. The firm’s quarterly revenue was up 18.6% on a year-over-year basis. 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.

CDNS has been the subject of several other research reports. Needham & Company LLC reaffirmed a “buy” rating and set a $400.00 price objective on shares of Cadence Design Systems in a research report on Tuesday, April 28th. Benchmark started coverage on shares of Cadence Design Systems in a report on Wednesday, July 15th. They issued a “buy” rating and a $450.00 target price on the stock. Rosenblatt Securities upped their price target on shares of Cadence Design Systems from $375.00 to $410.00 and gave the stock a “buy” rating in a report on Tuesday, July 14th. Citigroup increased their price target on shares of Cadence Design Systems from $385.00 to $400.00 and gave the stock a “buy” rating in a research report on Wednesday, April 29th. Finally, Berenberg Bank set a $440.00 price objective on shares of Cadence Design Systems in a research note on Wednesday, May 27th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $393.65.

Cadence Design Systems Stock Down 0.1%

Shares of CDNS opened at $329.93 on Monday. The firm has a market cap of $91.00 billion, a P/E ratio of 76.91, a price-to-earnings-growth ratio of 3.91 and a beta of 1.15. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.47. Cadence Design Systems has a 52 week low of $262.75 and a 52 week high of $416.69. The firm’s 50-day simple moving average is $375.40 and its 200 day simple moving average is $328.75.

Insider Buying and Selling at Cadence Design Systems

In other Cadence Design Systems news, VP Paul Scannell sold 10,500 shares of Cadence Design Systems stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $339.00, for a total transaction of $3,559,500.00. Following the transaction, the vice president directly owned 33,946 shares of the company’s stock, valued at approximately $11,507,694. The trade was a 23.62% decrease in their position. The sale was disclosed in a filing 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, CEO Anirudh Devgan sold 51,887 shares of Cadence Design Systems stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $370.00, for a total value of $19,198,190.00. Following the completion of the transaction, the chief executive officer directly owned 303,525 shares in the company, valued at approximately $112,304,250. This represents a 14.60% 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. Insiders sold 157,057 shares of company stock worth $60,272,277 over the last 90 days. Company insiders own 0.49% of the company’s stock.

Institutional Trading of Cadence Design Systems

A number of institutional investors have recently bought and sold shares of the company. Regent Peak Wealth Advisors LLC raised its position in shares of Cadence Design Systems by 2.5% in the 2nd quarter. Regent Peak Wealth Advisors LLC now owns 1,697 shares of the software maker’s stock worth $637,000 after acquiring an additional 42 shares in the last quarter. Tema ETFs LLC boosted its position in shares of Cadence Design Systems by 10.2% during the 2nd quarter. Tema ETFs LLC now owns 4,702 shares of the software maker’s stock valued at $1,765,000 after purchasing an additional 435 shares in the last quarter. E. Ohman J or Asset Management AB grew its stake in Cadence Design Systems by 3.7% during the second quarter. E. Ohman J or Asset Management AB now owns 12,576 shares of the software maker’s stock worth $4,720,000 after purchasing an additional 450 shares during the period. Handelsbanken Fonder AB grew its stake in Cadence Design Systems by 30.9% during the second quarter. Handelsbanken Fonder AB now owns 176,771 shares of the software maker’s stock worth $66,346,000 after purchasing an additional 41,693 shares during the period. Finally, Bay Colony Advisory Group Inc d b a Bay Colony Advisors increased its holdings in Cadence Design Systems by 10.2% in the second quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors now owns 1,287 shares of the software maker’s stock worth $483,000 after purchasing an additional 119 shares in the last quarter. 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.