Rosenblatt Securities Boosts Cadence Design Systems (NASDAQ:CDNS) Price Target to $420.00

Cadence Design Systems (NASDAQ:CDNS) had its price objective hoisted by investment analysts at Rosenblatt Securities from $410.00 to $420.00 in a note issued to investors on Tuesday,Benzinga reports. The firm presently has a “buy” rating on the software maker’s stock. Rosenblatt Securities’ price target would suggest a potential upside of 24.04% from the stock’s current price.

Several other equities analysts have also recently commented on the company. Benchmark began coverage on Cadence Design Systems in a research note on Wednesday, July 15th. They set a “buy” rating and a $450.00 target price for the company. Wells Fargo & Company lifted their price target on shares of Cadence Design Systems from $400.00 to $425.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 26th. Weiss Ratings reiterated a “hold (c)” rating on shares of Cadence Design Systems in a research note on Thursday, July 2nd. KeyCorp boosted their target price on shares of Cadence Design Systems from $405.00 to $425.00 and gave the stock an “overweight” rating in a research report on Tuesday, April 28th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $400.00 price target on shares of Cadence Design Systems in a research report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Cadence Design Systems currently has an average rating of “Moderate Buy” and a consensus target price of $398.88.

Cadence Design Systems Stock Up 3.8%

Shares of NASDAQ CDNS opened at $338.61 on Tuesday. 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 1 year low of $262.75 and a 1 year high of $416.69. The stock’s 50-day simple moving average is $373.77 and its 200-day simple moving average is $329.63. The firm has a market cap of $93.40 billion, a price-to-earnings ratio of 78.93, a PEG ratio of 3.86 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS) last issued its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, beating analysts’ consensus estimates of $2.05 by $0.06. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The firm had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.58 billion. During the same quarter in the prior year, the business posted $1.65 earnings per share. Cadence Design Systems’s revenue for the quarter was up 24.2% on a year-over-year basis. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS. As a group, equities analysts anticipate that Cadence Design Systems will post 6.23 earnings per share for the current fiscal year.

Insider Buying and Selling at Cadence Design Systems

In related news, Director James D. Plummer sold 1,511 shares of the firm’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $381.34, for a total transaction of $576,204.74. Following the transaction, the director directly owned 23,264 shares in the company, valued at $8,871,493.76. This trade represents a 6.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 7,081 shares of Cadence Design Systems stock in a transaction on Monday, June 1st. The stock was sold at an average price of $393.91, for a total transaction of $2,789,276.71. Following the completion of the transaction, the vice president directly owned 32,181 shares of the company’s stock, valued at approximately $12,676,417.71. This represents a 18.04% decrease in their position. 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. In the last 90 days, insiders sold 157,057 shares of company stock worth $60,272,277. 0.49% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Regent Peak Wealth Advisors LLC raised its stake in Cadence Design Systems by 2.5% during the second 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 during the period. Tema ETFs LLC lifted its holdings in Cadence Design Systems by 10.2% in the second quarter. Tema ETFs LLC now owns 4,702 shares of the software maker’s stock worth $1,765,000 after acquiring an additional 435 shares during the last quarter. E. Ohman J or Asset Management AB boosted its stake in Cadence Design Systems by 3.7% in the second quarter. E. Ohman J or Asset Management AB now owns 12,576 shares of the software maker’s stock valued at $4,720,000 after acquiring an additional 450 shares during the period. Handelsbanken Fonder AB grew its holdings in shares of Cadence Design Systems by 30.9% during the second quarter. Handelsbanken Fonder AB now owns 176,771 shares of the software maker’s stock valued at $66,346,000 after purchasing an additional 41,693 shares during the last quarter. Finally, Bay Colony Advisory Group Inc d b a Bay Colony Advisors raised its position in shares of Cadence Design Systems by 10.2% during the 2nd 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 during the period. 84.85% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Cadence Design Systems

Here are the key news stories impacting Cadence Design Systems this week:

• Positive Sentiment: Q2 earnings beat expectations: Cadence reported adjusted earnings of $2.11 per share, above the $2.05 consensus estimate. Revenue reached $1.58 billion, in line with expectations but up 24.2% year over year. Cadence Design Systems Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Raised full-year guidance: Management projected 2026 earnings of $8.05-$8.15 per share and revenue of approximately $6.3 billion, modestly above prior expectations. Third-quarter EPS guidance of $2.01-$2.07 also exceeded the $1.84 analyst consensus. Cadence raises annual forecasts as demand booms for AI chip design
• Positive Sentiment: AI-driven demand remains strong: Cadence cited robust customer spending on AI-powered chip and system design software. Reports highlighted a record $8.1 billion backlog and expanding partnerships around agentic AI, supporting expectations for roughly 19% revenue growth in 2026. Cadence signals 19 percent 2026 revenue growth
• Neutral Sentiment: Valuation remains demanding: With CDNS trading at a high earnings multiple and above its 200-day moving average, continued share-price gains may depend on the company sustaining elevated growth and converting its backlog into revenue.

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.