Cadence Design Systems (NASDAQ:CDNS) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Cadence Design Systems to “buy” from “hold.” MarketBeat reports a consensus “Moderate Buy” rating and an average price target of $403.88, supported by multiple analysts raising targets to $420.
• Cadence reported quarterly earnings of $2.11 per share, exceeding estimates of $2.05, while revenue rose 24.2% year over year to $1.58 billion. The company issued fiscal 2026 EPS guidance of $8.05–$8.15.
• CDNS opened at $326.13, with a market capitalization of approximately $89.81 billion and a 52-week range of $262.75 to $416.69. Institutional investors own about 84.85% of the company, while insiders sold $1.75 million of stock over the past three months.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

Other analysts have also recently issued reports about the stock. Citigroup lifted their target price on shares of Cadence Design Systems from $400.00 to $420.00 and gave the company a "buy" rating in a research note on Tuesday, July 28th. Oppenheimer restated a "market perform" rating and set a $300.00 price target on shares of Cadence Design Systems in a report on Tuesday, July 28th. Rosenblatt Securities lifted their price objective on shares of Cadence Design Systems from $410.00 to $420.00 and gave the company a "buy" rating in a research note on Tuesday, July 28th. FBN Securities initiated coverage on shares of Cadence Design Systems in a research report on Friday, September 11th. They set an "outperform" rating and a $375.00 target price on the stock. Finally, Weiss Ratings upgraded Cadence Design Systems from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, July 30th. One equities research 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. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $403.88.

Cadence Design Systems Price Performance

NASDAQ CDNS opened at $326.13 on Friday. The company has a 50 day simple moving average of $317.64 and a 200-day simple moving average of $333.32. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.53. The firm has a market capitalization of $89.81 billion, a price-to-earnings ratio of 64.84, a price-to-earnings-growth ratio of 3.46 and a beta of 1.14. Cadence Design Systems has a 52-week low of $262.75 and a 52-week high of $416.69.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share for the quarter, topping analysts' consensus estimates of $2.05 by $0.06. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The business had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.58 billion. During the same period in the prior year, the business posted $1.65 earnings per share. Cadence Design Systems's revenue for the quarter was up 24.2% compared to the same quarter last year. 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. Equities research analysts predict that Cadence Design Systems will post 6.4 earnings per share for the current fiscal year.

Insider Activity

In other Cadence Design Systems news, Director Ita M. Brennan sold 180 shares of the business's stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $285.51, for a total transaction of $51,391.80. Following the completion of the transaction, the director owned 7,824 shares of the company's stock, valued at $2,233,830.24. The trade was a 2.25% decrease in their position. The transaction was disclosed in a legal 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, VP Paul Scannell sold 280 shares of the company's stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $339.00, for a total transaction of $94,920.00. Following the sale, the vice president owned 31,720 shares of the company's stock, valued at $10,753,080. This trade represents a 0.88% decrease in their ownership of the stock. 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 a total of 5,710 shares of company stock valued at $1,748,292 over the last three months. Corporate insiders own 0.49% of the company's stock.

Hedge Funds Weigh In On Cadence Design Systems

Large investors have recently made changes to their positions in the business. QRG Capital Management Inc. increased its position in Cadence Design Systems by 38.7% in the 2nd quarter. QRG Capital Management Inc. now owns 93,049 shares of the software maker's stock worth $34,923,000 after buying an additional 25,944 shares during the period. Envestnet Portfolio Solutions Inc. grew its stake in shares of Cadence Design Systems by 74.8% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 21,069 shares of the software maker's stock worth $7,908,000 after acquiring an additional 9,016 shares during the last quarter. Anchor Investment Management LLC grew its stake in shares of Cadence Design Systems by 117.2% in the second quarter. Anchor Investment Management LLC now owns 291 shares of the software maker's stock worth $109,000 after acquiring an additional 157 shares during the last quarter. Sequoia Financial Advisors LLC increased its position in Cadence Design Systems by 58.2% during the second quarter. Sequoia Financial Advisors LLC now owns 16,776 shares of the software maker's stock worth $6,296,000 after acquiring an additional 6,169 shares during the period. Finally, IPG Investment Advisors LLC bought a new position in Cadence Design Systems during the second quarter worth $1,902,000. Institutional investors and hedge funds own 84.85% of the company's stock.

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 (IP). Its products help engineers design, verify and analyze integrated circuits, printed circuit boards and complete electronic systems.

The company offers solutions spanning digital and custom IC design, functional verification, digital and analog simulation, emulation and prototyping, system analysis, and 3D computational fluid dynamics.

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