Loop Capital Raises Cadence Design Systems Price Target to $370

Cadence Design Systems (NASDAQ: CDNS) has seen its price target increased from $340.00 to $370.00 by Loop Capital, according to a research report released on Monday. This adjustment reflects a strong buy rating for the software company, highlighting growing confidence among analysts regarding its market position.

Several other financial institutions have also weighed in on Cadence Design Systems recently. Oppenheimer lowered its price target from $225.00 to $200.00, placing an “underperform” rating on the stock. Meanwhile, KeyCorp maintained an “overweight” rating while raising its target from $340.00 to $358.00. In addition, Mizuho increased its target from $300.00 to $325.00, giving the stock an “outperform” rating. Bank of America similarly raised its target from $320.00 to $350.00, endorsing the stock with a “buy” rating. On July 10, The Goldman Sachs Group initiated coverage with a buy rating and a target price of $380.00.

Currently, one analyst has rated Cadence Design Systems with a sell rating, one has issued a hold rating, while thirteen analysts have assigned a buy rating. According to data from MarketBeat, the stock holds an average rating of “Moderate Buy” with a consensus price target of $330.07.

Current Stock Performance and Financials

As of Monday, shares of Cadence Design Systems opened at $314.58. The company maintains a debt-to-equity ratio of 0.52, a quick ratio of 2.90, and a current ratio of 3.07. The stock’s performance over the past 50 days shows a simple moving average of $308.36, while the 200-day average stands at $287.75. Over the past year, the stock has fluctuated between a low of $221.56 and a high of $330.09. Cadence Design Systems boasts a market capitalization of $85.89 billion, a price-to-earnings (P/E) ratio of 79.64, and a P/E/G ratio of 4.41.

In its most recent quarterly earnings report, released on April 28, the company reported earnings per share (EPS) of $1.57, surpassing the consensus estimate of $1.50 by $0.07. The firm recorded a net margin of 22.18% with a return on equity of 29.36%. Revenue for the quarter reached $1.24 billion, matching analyst expectations, and reflecting a 23.1% increase compared to the same period last year. Analysts predict that Cadence Design Systems will post an EPS of 5.41 for the current fiscal year.

Insider Transactions and Institutional Investment

Recent insider activity included the sale of 1,000 shares by Vice President Paul Cunningham on July 1 at an average price of $306.35, totaling $306,350. Following this transaction, Cunningham held 105,499 shares valued at approximately $32.32 million, marking a 0.94% decrease in his stake. Director James D. Plummer also sold 868 shares on May 16 at an average price of $319.95, amounting to $277,716.60. This sale reduced his holdings to 23,996 shares, valued at about $7.68 million, representing a 3.49% decrease in position. In total, insiders have sold 19,975 shares worth approximately $6.11 million in the last quarter, while company insiders own 1.99% of the total stock.

Institutional investors have also been active regarding Cadence Design Systems. Brighton Jones LLC increased its stake by 80.2% during the fourth quarter, now owning 1,519 shares valued at $456,000 after acquiring an additional 676 shares. Highview Capital Management LLC DE raised its position by 2.7%, now holding 6,304 shares worth $1.89 million after buying 163 additional shares. Other notable transactions include Proficio Capital Partners LLC purchasing new shares worth $431,000 and Commonwealth Equity Services LLC increasing its stake by 3.2% to 21,784 shares valued at $6.55 million. Institutional investors collectively own 84.85% of Cadence Design Systems.

Cadence Design Systems, Inc. provides essential software, hardware, services, and reusable integrated circuit (IC) design blocks globally. The company specializes in functional verification services, offering tools such as JasperGold, Xcelium, Palladium, and Protium for chip verification.