Zacks Research Comments on Cadence Design Systems, Inc.’s Q1 2025 Earnings (NASDAQ:CDNS)

Cadence Design Systems, Inc. (NASDAQ:CDNS) – Investment analysts at Zacks Research cut their Q1 2025 earnings estimates for shares of Cadence Design Systems in a report issued on Thursday, April 18th. Zacks Research analyst V. Doshi now expects that the software maker will post earnings per share of $1.16 for the quarter, down from their prior forecast of $1.17. The consensus estimate for Cadence Design Systems’ current full-year earnings is $4.82 per share. Zacks Research also issued estimates for Cadence Design Systems’ FY2026 earnings at $6.81 EPS.

Cadence Design Systems (NASDAQ:CDNS) last released its earnings results on Monday, February 12th. The software maker reported $1.38 earnings per share for the quarter, topping analysts’ consensus estimates of $1.33 by $0.05. Cadence Design Systems had a net margin of 25.46% and a return on equity of 35.57%. The business had revenue of $1.07 billion for the quarter, compared to analyst estimates of $1.06 billion. During the same period last year, the company posted $0.75 EPS. The business’s revenue was up 18.8% on a year-over-year basis.

Several other research firms have also commented on CDNS. Piper Sandler started coverage on shares of Cadence Design Systems in a research report on Thursday, April 4th. They set a “neutral” rating and a $334.00 price target on the stock. Robert W. Baird lifted their price target on shares of Cadence Design Systems from $302.00 to $322.00 and gave the company an “outperform” rating in a research report on Thursday. Needham & Company LLC reaffirmed a “buy” rating and set a $320.00 price target on shares of Cadence Design Systems in a research report on Friday. Rosenblatt Securities lowered shares of Cadence Design Systems from a “buy” rating to a “neutral” rating and lifted their price target for the company from $265.00 to $280.00 in a research report on Tuesday, February 13th. Finally, Wells Fargo & Company lifted their price target on shares of Cadence Design Systems from $330.00 to $350.00 and gave the company an “overweight” rating in a research report on Tuesday. Three analysts have rated the stock with a hold rating and seven have given a buy rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $318.10.

Cadence Design Systems Trading Down 2.0 %

CDNS opened at $280.25 on Friday. The firm has a market capitalization of $76.29 billion, a price-to-earnings ratio of 73.36, a price-to-earnings-growth ratio of 3.57 and a beta of 1.04. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.24 and a quick ratio of 1.13. The company’s 50 day simple moving average is $305.52 and its two-hundred day simple moving average is $279.70. Cadence Design Systems has a 1-year low of $194.01 and a 1-year high of $327.36.

Hedge Funds Weigh In On Cadence Design Systems

A number of institutional investors and hedge funds have recently modified their holdings of CDNS. Norges Bank acquired a new position in shares of Cadence Design Systems during the fourth quarter worth $770,945,000. Alliancebernstein L.P. grew its stake in shares of Cadence Design Systems by 620.0% during the fourth quarter. Alliancebernstein L.P. now owns 2,954,303 shares of the software maker’s stock worth $474,579,000 after purchasing an additional 2,543,966 shares in the last quarter. Moneta Group Investment Advisors LLC acquired a new position in shares of Cadence Design Systems during the fourth quarter worth $227,854,000. Nordea Investment Management AB grew its stake in shares of Cadence Design Systems by 124.8% during the fourth quarter. Nordea Investment Management AB now owns 1,895,230 shares of the software maker’s stock worth $515,995,000 after purchasing an additional 1,052,228 shares in the last quarter. Finally, Wellington Management Group LLP grew its stake in shares of Cadence Design Systems by 143.3% during the third quarter. Wellington Management Group LLP now owns 1,634,920 shares of the software maker’s stock worth $383,062,000 after purchasing an additional 962,987 shares in the last quarter. Institutional investors and hedge funds own 84.85% of the company’s stock.

Insiders Place Their Bets

In other Cadence Design Systems news, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the business’s stock in a transaction on Monday, April 15th. The shares were sold at an average price of $308.83, for a total value of $463,245.00. Following the completion of the transaction, the director now owns 50,183 shares in the company, valued at $15,498,015.89. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In other Cadence Design Systems news, VP Thomas P. Beckley sold 65,268 shares of the business’s stock in a transaction on Thursday, February 15th. The shares were sold at an average price of $296.98, for a total value of $19,383,290.64. Following the completion of the transaction, the vice president now owns 156,156 shares in the company, valued at $46,375,208.88. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the business’s stock in a transaction on Monday, April 15th. The stock was sold at an average price of $308.83, for a total transaction of $463,245.00. Following the completion of the transaction, the director now owns 50,183 shares of the company’s stock, valued at approximately $15,498,015.89. The disclosure for this sale can be found here. Insiders sold a total of 177,544 shares of company stock worth $53,581,207 over the last 90 days. Corporate insiders own 1.99% of the company’s stock.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification.