Shares of Cadence Design Systems (CDNS) fell by approximately 10.1% during trading on Friday, closing around $327.25 after starting the day at $334.56, down from Thursday's closing price of $364.65.
This decline follows a recent "Strong Buy" recommendation from Benchmark, which also set a price target of $450 earlier in the week, the most optimistic among analysts currently covering the stock.
Analyst Outlook and Earnings Report
Despite the drop, analysts maintain a generally positive outlook on CDNS, which is rated a "Moderate Buy" with an average price target of $393.65 based on 17 analyst ratings. These include one 'Strong Buy', thirteen 'Buy', and three 'Hold' recommendations. Recent adjustments have seen Wells Fargo raise its target from $400 to $425 and KeyCorp upgrade from $405 to $425.
In its first quarter results, Cadence reported earnings per share of $1.96, exceeding expectations of $1.91. Revenue for the quarter reached $1.47 billion, marking an 18.6% increase year-over-year. The company's management forecasts EPS for fiscal year 2026 in the range of $7.85 to $7.95, with the second quarter projected between $2.02 and $2.08.
Insider Activity and Stock Performance
Insider trading has garnered attention, as CEO Anirudh Devgan sold 25,005 shares on June 2 at an average price of $415.00. Notably, the stock was still trading above its 200-day moving average of $328.56, although it has dipped below the 50-day moving average of $376.74.
This material is informational and should not be considered financial advice.
