Rosenblatt Securities Issues Positive Forecast for Cadence Design Systems (NASDAQ:CDNS) Stock Price

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

Other analysts have also recently issued reports about the stock. KeyCorp boosted their price objective on shares of Cadence Design Systems from $405.00 to $425.00 and gave the company an “overweight” rating in a research note on Tuesday, April 28th. Needham & Company LLC reaffirmed a “buy” rating and issued a $400.00 target price on shares of Cadence Design Systems in a research report on Tuesday. Benchmark began coverage on Cadence Design Systems in a report on Wednesday, July 15th. They issued a “buy” rating and a $450.00 target price on the stock. Robert W. Baird boosted their price target on Cadence Design Systems from $415.00 to $420.00 and gave the company an “outperform” rating in a research report on Tuesday. Finally, Stifel Nicolaus upped their price target on Cadence Design Systems from $395.00 to $432.00 and gave the stock a “buy” rating in a research note on Tuesday, June 9th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $398.88.

Cadence Design Systems Trading Up 3.8%

NASDAQ CDNS opened at $338.61 on Tuesday. Cadence Design Systems has a 12 month low of $262.75 and a 12 month high of $416.69. The company has a 50-day moving average of $373.77 and a 200-day moving average of $329.63. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.47 and a quick ratio of 1.32. The company has a market cap of $93.40 billion, a P/E ratio of 78.93, a P/E/G ratio of 3.86 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS) last released its earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.05 by $0.06. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The business had revenue of $1.58 billion for the quarter, compared to analysts’ expectations of $1.58 billion. During the same period last year, the company earned $1.65 earnings per share. The company’s quarterly revenue 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 predict that Cadence Design Systems will post 6.23 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Ita M. Brennan sold 180 shares of Cadence Design Systems stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $387.45, for a total transaction of $69,741.00. Following the transaction, the director owned 8,004 shares in the company, valued at approximately $3,101,149.80. The trade was a 2.20% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 2,000 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $391.00, for a total transaction of $782,000.00. Following the sale, the vice president directly owned 126,586 shares of the company’s stock, valued at approximately $49,495,126. This trade represents a 1.56% decrease in their ownership of the stock. 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. Over the last ninety days, insiders have sold 157,057 shares of company stock valued at $60,272,277. 0.49% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Pinnacle Wealth Management Advisory Group LLC grew its stake in shares of Cadence Design Systems by 3.1% in the first quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,033 shares of the software maker’s stock valued at $287,000 after buying an additional 31 shares in the last quarter. Westfuller Advisors LLC boosted its holdings in Cadence Design Systems by 8.2% in the 1st quarter. Westfuller Advisors LLC now owns 408 shares of the software maker’s stock worth $113,000 after acquiring an additional 31 shares during the period. Spirepoint Private Client LLC grew its position in Cadence Design Systems by 4.6% in the fourth quarter. Spirepoint Private Client LLC now owns 722 shares of the software maker’s stock valued at $226,000 after acquiring an additional 32 shares in the last quarter. Cornerstone Planning Group LLC grew its position in Cadence Design Systems by 32.0% in the first quarter. Cornerstone Planning Group LLC now owns 132 shares of the software maker’s stock valued at $37,000 after acquiring an additional 32 shares in the last quarter. Finally, KCM Investment Advisors LLC raised its stake in shares of Cadence Design Systems by 0.4% during the first quarter. KCM Investment Advisors LLC now owns 8,013 shares of the software maker’s stock valued at $2,227,000 after purchasing an additional 32 shares during the period. Institutional investors and hedge funds own 84.85% of the company’s stock.

More Cadence Design Systems News

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.