Cadence Design Systems (NASDAQ:CDNS) Price Target Raised to $420.00

Cadence Design Systems (NASDAQ:CDNS) had its price objective raised by Rosenblatt Securities from $410.00 to $420.00 in a research note published on Tuesday,Benzinga reports. Rosenblatt Securities currently has a buy rating on the software maker’s stock.

A number of other analysts also recently weighed in on the company. Benchmark started coverage on Cadence Design Systems in a report on Wednesday, July 15th. They issued a “buy” rating and a $450.00 price objective for the company. Berenberg Bank set a $440.00 target price on Cadence Design Systems in a report on Wednesday, May 27th. Stifel Nicolaus upped their price target on Cadence Design Systems from $395.00 to $432.00 and gave the company a “buy” rating in a research report on Tuesday, June 9th. Weiss Ratings reissued a “hold (c)” rating on shares of Cadence Design Systems in a research note on Thursday, July 2nd. Finally, Needham & Company LLC restated a “buy” rating and set a $400.00 price objective on shares of Cadence Design Systems in a research report on Tuesday. Thirteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, Cadence Design Systems has an average rating of “Moderate Buy” and a consensus target price of $405.69.

Cadence Design Systems Trading Up 0.0%

CDNS opened at $332.82 on Tuesday. Cadence Design Systems has a fifty-two week low of $262.75 and a fifty-two week high of $416.69. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.32. The firm has a market capitalization of $91.80 billion, a price-to-earnings ratio of 66.17, a PEG ratio of 3.79 and a beta of 1.15. The company’s 50 day moving average price is $373.04 and its two-hundred day moving average price is $329.95.

Cadence Design Systems (NASDAQ:CDNS) last announced its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.06. The firm had revenue of $1.58 billion during the quarter, compared to analysts’ expectations of $1.58 billion. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The company’s revenue was up 24.2% on a year-over-year basis. During the same period in the prior year, the company posted $1.65 EPS. 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, research analysts predict that Cadence Design Systems will post 6.39 earnings per share for the current year.

Insider Buying and Selling at Cadence Design Systems

In related news, Director James D. Plummer sold 1,511 shares of Cadence Design Systems stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $381.34, for a total transaction of $576,204.74. Following the completion of the transaction, the director owned 23,264 shares of the company’s stock, 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 filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anirudh Devgan sold 51,887 shares of the business’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $370.00, for a total transaction of $19,198,190.00. Following the completion of the transaction, the chief executive officer owned 303,525 shares in the company, valued at approximately $112,304,250. The trade was a 14.60% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 145,557 shares of company stock valued at $56,375,287 over the last three months. 0.49% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. MUFG Securities EMEA plc lifted its position in shares of Cadence Design Systems by 113.9% during the 4th quarter. MUFG Securities EMEA plc now owns 11,159 shares of the software maker’s stock valued at $3,488,000 after acquiring an additional 5,943 shares during the period. Sun Financial Inc acquired a new stake in Cadence Design Systems in the fourth quarter worth $1,225,000. DDD Partners LLC grew its holdings in Cadence Design Systems by 27.4% in the fourth quarter. DDD Partners LLC now owns 41,968 shares of the software maker’s stock worth $13,118,000 after purchasing an additional 9,024 shares during the period. Leonteq Securities AG bought a new stake in Cadence Design Systems in the fourth quarter valued at $1,105,000. Finally, PNC Financial Services Group Inc. increased its stake in Cadence Design Systems by 1.0% in the fourth quarter. PNC Financial Services Group Inc. now owns 369,717 shares of the software maker’s stock valued at $115,566,000 after purchasing an additional 3,562 shares in the last quarter. 84.85% of the stock is owned by institutional investors and hedge funds.

Key Cadence Design Systems News

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

• Positive Sentiment: Cadence exceeded second-quarter 2026 earnings expectations, reporting $2.11 in adjusted EPS versus the $2.05 consensus estimate. Revenue increased 24.2% year over year to $1.58 billion, supported by demand for AI and advanced-chip design tools. Cadence Q2 Earnings Top Estimates on AI Demand, Backlog Hits $8.1B
• Positive Sentiment: Record backlog of approximately $8.1 billion provides visibility into future sales and was cited by analysts as evidence that agentic AI and broader semiconductor investment can extend Cadence’s growth. Cadence rises after Q2 beat as analysts highlight record backlog
• Positive Sentiment: Management raised its full-year 2026 outlook to $8.05–$8.15 in EPS and issued third-quarter guidance of $2.01–$2.07, reinforcing confidence in continued demand.
• Positive Sentiment: Several Wall Street firms remain constructive: Needham reiterated a Buy rating, while Rosenblatt raised its price target to $420. Baird, Bank of America and Piper Sandler analysts also anticipate further appreciation. Rosenblatt raises Cadence price target
• Neutral Sentiment: The earnings call and related research suggest growth is broadening beyond AI, potentially supporting another earnings-driven advance if Cadence converts its backlog into revenue. Cadence earnings call signals AI-driven surge
• Negative Sentiment: At roughly 54 times earnings, CDNS remains expensive, and some commentary warns that the share price already discounts years of strong execution. This rich valuation could limit upside or amplify pressure if growth slows. Cadence keeps winning, but the share price is years ahead

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.