Wall Street Zen Upgrades Cadence Design Systems (NASDAQ:CDNS) to Buy

Cadence Design Systems (NASDAQ:CDNS) was upgraded by analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued to investors on Monday, Wall Street Zen reports.

A number of other equities research analysts have also recently issued reports on CDNS. Rothschild & Co Redburn boosted their price objective on Cadence Design Systems from $385.00 to $395.00 and gave the company a “buy” rating in a research note on Tuesday, July 28th. Morgan Stanley reaffirmed an “overweight” rating and set a $400.00 price objective (up from $370.00) on shares of Cadence Design Systems in a report on Wednesday, July 29th. BNP Paribas Exane increased their target price on shares of Cadence Design Systems from $400.00 to $450.00 and gave the stock an “outperform” rating in a research report on Thursday, June 18th. Needham & Company LLC reiterated a “buy” rating and set a $400.00 target price on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Finally, Robert W. Baird lifted their target price on shares of Cadence Design Systems from $415.00 to $420.00 and gave the stock an “outperform” rating in a research note on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Cadence Design Systems presently has an average rating of “Moderate Buy” and a consensus target price of $404.14.

Cadence Design Systems Trading Down 4.1%

NASDAQ:CDNS opened at $334.20 on Monday. The company has a current ratio of 1.74, a quick ratio of 1.53 and a debt-to-equity ratio of 0.36. The stock has a market capitalization of $92.04 billion, a PE ratio of 56.56, a price-to-earnings-growth ratio of 3.73 and a beta of 1.13. The firm’s 50 day moving average is $319.68 and its 200 day moving average is $338.26. Cadence Design Systems has a 12 month low of $262.75 and a 12 month high of $416.69.

Cadence Design Systems (NASDAQ:CDNS) last posted its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, beating the consensus estimate of $2.05 by $0.06. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%. The business had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.58 billion. During the same quarter in the prior year, the business earned $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. Sell-side analysts expect that Cadence Design Systems will post 6.41 earnings per share for the current year.

Insider Buying and Selling

In other Cadence Design Systems news, VP Paul Cunningham sold 2,000 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $277.12, for a total value of $554,240.00. Following the completion of the transaction, the vice president owned 121,793 shares in the company, valued at $33,751,276.16. This trade represents a 1.62% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 280 shares of Cadence Design Systems stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $339.00, for a total value of $94,920.00. Following the transaction, the vice president directly owned 31,720 shares of the company’s stock, valued at $10,753,080. The trade was a 0.88% 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 have sold 6,960 shares of company stock valued at $2,185,879. 0.49% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cadence Design Systems

Large investors have recently modified their holdings of the company. Signal Advisors Wealth LLC bought a new stake in Cadence Design Systems during the 3rd quarter worth approximately $440,000. Krilogy Financial LLC purchased a new stake in Cadence Design Systems in the 3rd quarter worth approximately $8,004,000. Downshift Financial LLC lifted its stake in Cadence Design Systems by 2,384.6% in the 3rd quarter. Downshift Financial LLC now owns 323 shares of the software maker’s stock worth $107,000 after purchasing an additional 310 shares in the last quarter. McGlone Suttner Wealth Management Inc. boosted its holdings in Cadence Design Systems by 20.5% in the 3rd quarter. McGlone Suttner Wealth Management Inc. now owns 1,441 shares of the software maker’s stock valued at $476,000 after purchasing an additional 245 shares during the period. Finally, Seilern Investment Management Ltd boosted its holdings in Cadence Design Systems by 17.7% in the 3rd quarter. Seilern Investment Management Ltd now owns 134,530 shares of the software maker’s stock valued at $44,420,000 after purchasing an additional 20,209 shares during the period. 84.85% of the stock is currently owned by institutional investors.

Cadence Design Systems News Roundup

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

• Positive Sentiment: Erste Group Bank raised its FY2026 EPS estimate slightly to $6.40 from $6.39, broadly in line with the $6.41 consensus forecast. Erste Group Bank estimate update
• Positive Sentiment: Cadence’s latest quarterly results remained strong, with revenue of approximately $1.584 billion, record backlog of $8.1 billion and increased full-year 2026 guidance. The company is also scheduled to report third-quarter results on October 26. Cadence stock rotation analysis
• Neutral Sentiment: Semiconductor equipment and chip-design shares broadly weakened after a strong AI-driven run, with peers including Applied Materials, Lam Research and KLA also declining. This indicates sector-wide profit-taking rather than a Cadence-specific operational shock. Semiconductor equipment stocks slide
• Negative Sentiment: Cadence trades at a premium valuation, making CDNS more vulnerable to risk reduction in AI- and semiconductor-exposed software names. Synopsys also traded lower, reinforcing the broader electronic-design-automation selloff. Cadence valuation and sector analysis
• Negative Sentiment: One analysis argues that Cadence’s customers may be gaining negotiating leverage, potentially pressuring pricing, margins or future growth. In addition, reported insider activity shows selling with no purchases over the past six months, which may weigh on sentiment. Cadence customer leverage analysis

Cadence Design Systems Company Profile

Cadence Design Systems, Inc is a technology company that develops electronic design automation (EDA) software, hardware, and semiconductor intellectual property. Its products help engineers design, verify, analyze, and manufacture complex semiconductor chips, printed circuit boards, and electronic systems.

The company’s offerings include digital and custom/analog integrated-circuit design tools, functional verification and emulation platforms, semiconductor intellectual property, and system analysis solutions.