Cadence Design Systems (NASDAQ:CDNS) Raised to “Buy” at Rosenblatt Securities

Cadence Design Systems (NASDAQ:CDNS) was upgraded by stock analysts at Rosenblatt Securities from a “neutral” rating to a “buy” rating in a research note issued on Wednesday, MarketBeat reports. The firm presently has a $360.00 target price on the software maker’s stock, up from their previous target price of $335.00. Rosenblatt Securities’ target price would suggest a potential upside of 27.00% from the stock’s previous close.

Several other brokerages have also recently commented on CDNS. Oppenheimer raised shares of Cadence Design Systems from an “underperform” rating to a “market perform” rating and set a $275.00 target price on the stock in a report on Monday, December 1st. JPMorgan Chase & Co. raised their price objective on Cadence Design Systems from $390.00 to $405.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 28th. Wells Fargo & Company reiterated an “overweight” rating and set a $375.00 target price on shares of Cadence Design Systems in a research report on Wednesday. Robert W. Baird raised their price target on Cadence Design Systems from $390.00 to $418.00 and gave the stock an “outperform” rating in a research report on Tuesday, October 28th. Finally, Wolfe Research reaffirmed an “outperform” rating and issued a $385.00 price target on shares of Cadence Design Systems in a research note on Tuesday, October 28th. Fifteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Cadence Design Systems presently has an average rating of “Moderate Buy” and a consensus price target of $376.50.

Cadence Design Systems Stock Performance

NASDAQ:CDNS opened at $283.46 on Wednesday. The stock has a 50 day simple moving average of $309.88 and a 200 day simple moving average of $328.89. The stock has a market cap of $77.16 billion, a P/E ratio of 73.06, a PEG ratio of 3.33 and a beta of 1.01. Cadence Design Systems has a 1-year low of $221.56 and a 1-year high of $376.45. The company has a current ratio of 3.05, a quick ratio of 2.84 and a debt-to-equity ratio of 0.48.

Cadence Design Systems (NASDAQ:CDNS) last posted its earnings results on Tuesday, February 17th. The software maker reported $1.99 earnings per share for the quarter, topping analysts’ consensus estimates of $1.91 by $0.08. Cadence Design Systems had a return on equity of 30.13% and a net margin of 20.35%.The company had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.42 billion. During the same quarter last year, the firm earned $1.88 earnings per share. The company’s revenue was up 6.2% on a year-over-year basis. Cadence Design Systems has set its Q1 2026 guidance at 1.890-1.950 EPS and its FY 2026 guidance at 8.050-8.150 EPS. Research analysts anticipate that Cadence Design Systems will post 5.41 earnings per share for the current year.

Insider Activity

In related news, CEO Anirudh Devgan sold 20,000 shares of the company’s stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $340.00, for a total transaction of $6,800,000.00. Following the completion of the transaction, the chief executive officer directly owned 195,844 shares in the company, valued at $66,586,960. This represents a 9.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Ita M. Brennan sold 180 shares of the firm’s stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $337.48, for a total transaction of $60,746.40. Following the completion of the sale, the director owned 7,650 shares in the company, valued at $2,581,722. This represents a 2.30% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 56,475 shares of company stock valued at $18,505,486. Corporate insiders own 0.37% of the company’s stock.

Institutional Investors Weigh In On Cadence Design Systems

Several hedge funds have recently modified their holdings of the company. Capitolis Liquid Global Markets LLC bought a new stake in Cadence Design Systems during the 4th quarter worth $5,485,000. Concentric Capital Strategies LP acquired a new stake in shares of Cadence Design Systems during the fourth quarter valued at about $10,774,000. Banco Bilbao Vizcaya Argentaria S.A. grew its holdings in shares of Cadence Design Systems by 2.1% during the fourth quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 33,602 shares of the software maker’s stock worth $10,515,000 after purchasing an additional 705 shares during the last quarter. Freestone Grove Partners LP acquired a new position in shares of Cadence Design Systems in the fourth quarter valued at approximately $5,889,000. Finally, Guggenheim Capital LLC raised its holdings in Cadence Design Systems by 2.1% in the 4th quarter. Guggenheim Capital LLC now owns 80,426 shares of the software maker’s stock valued at $25,140,000 after buying an additional 1,641 shares during the last quarter. Institutional investors and hedge funds own 84.85% of the company’s stock.

Key Headlines Impacting Cadence Design Systems

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

• Positive Sentiment: Q4 beat — Cadence reported Q4 EPS of $1.99 and revenue of $1.44B, topping consensus and showing y/y revenue growth (~6.2%), which validates steady demand. Cadence Reports Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Very strong FY26 guide — management raised FY‑2026 EPS to $8.05–8.15 (well above Street expectations) and set revenue guidance roughly $5.9–6.0B, signaling confidence in multi‑year demand drivers. Cadence Reports Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: AI‑linked demand highlighted — management and several reports point to strong AI-related design demand as a growth driver underpinning the beat and the raised guidance. Cadence beats quarterly profit and revenue estimates on strong AI-linked demand
• Neutral Sentiment: Call transcript and details available — the earnings call provides management commentary on product demand, backlog and cadence of revenue recognition; read the transcript for execution risks and cadence on AI bookings. Cadence Design Systems, Inc. (CDNS) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst views mixed but generally constructive — several buy/overweight ratings and price targets remain above current levels (median targets near $390), while a few firms remain cautious; analyst re‑ratings can amplify intraday moves. Analysts Set Cadence Design Systems, Inc. (NASDAQ:CDNS) PT at $379.59
• Negative Sentiment: Insider selling and institutional repositioning noted — recent reporting shows material insider sales and large institutional shifts that can create selling pressure even after a beat. Cadence Design Systems (CDNS) stock rises on Q4 2025 Earnings
• Negative Sentiment: Valuation and technicals may prompt profit‑taking — Cadence trades at a rich P/E (~73) and has recently been below its 50‑day and 200‑day moving averages, factors that can trigger rotation out of the name despite strong fundamentals.

Cadence Design Systems Company Profile

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.