What 7 Analyst Ratings Have To Say About Cadence Design Sys
Throughout the last three months, 7 analysts have evaluated Cadence Design Sys (NASDAQ:CDNS), offering a diverse set of opinions from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 3 | 1 | 0 | 0 |
| Last 30D | 1 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 2 | 1 | 0 | 0 |
| 2M Ago | 1 | 0 | 0 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
Analysts have set 12-month price targets for Cadence Design Sys, revealing an average target of $334.57, a high estimate of $355.00, and a low estimate of $318.00. This current average has increased by 1.78% from the previous average price target of $328.71.
Exploring Analyst Ratings: An In-Depth Overview
The analysis of recent analyst actions sheds light on the perception of Cadence Design Sys by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Joe Vruwink | Baird | Lowers | Outperform | $338.00 | $341.00 |
| Charles Shi | Needham | Maintains | Buy | $320.00 | $320.00 |
| Clarke Jeffries | Piper Sandler | Maintains | Neutral | $318.00 | $318.00 |
| Joe Vruwink | Baird | Raises | Outperform | $341.00 | $322.00 |
| Jason Celino | Keybanc | Raises | Overweight | $355.00 | $350.00 |
| Vivek Arya | B of A Securities | Raises | Buy | $350.00 | $330.00 |
| Charles Shi | Needham | Maintains | Buy | $320.00 | $320.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Cadence Design Sys. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Cadence Design Sys compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for Cadence Design Sys's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
For valuable insights into Cadence Design Sys's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on Cadence Design Sys analyst ratings.
All You Need to Know About Cadence Design Sys
Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enable system-level analysis and verification solutions. Cadence's comprehensive portfolio is benefiting from a mutual convergence of semiconductor companies moving up-stack toward systems-like companies, and systems companies moving down-stack toward in-house semiconductor design. The resulting expansion in EDA customers, alongside secular digitalization of various end markets, benefits EDA vendors like Cadence.
Cadence Design Sys: A Financial Overview
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Decline in Revenue: Over the 3 months period, Cadence Design Sys faced challenges, resulting in a decline of approximately -1.23% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Net Margin: Cadence Design Sys's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 24.54% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Cadence Design Sys's ROE excels beyond industry benchmarks, reaching 7.1%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Cadence Design Sys's ROA stands out, surpassing industry averages. With an impressive ROA of 4.35%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: With a below-average debt-to-equity ratio of 0.18, Cadence Design Sys adopts a prudent financial strategy, indicating a balanced approach to debt management.
What Are Analyst Ratings?
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.