Cadence Design Systems, Inc. (NASDAQ:CDNS) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately bullish: Thirteen of 16 brokerages rate Cadence Design Systems a buy, while three recommend holding the stock. The average 12-month price target is $405.69.
• Cadence reported strong quarterly results, with earnings of $2.11 per share versus the $2.05 consensus estimate and revenue of $1.58 billion, up 24.2% year over year. The company issued fiscal 2026 EPS guidance of $8.05–$8.15.
• Insiders have been selling shares: Company insiders sold 140,557 shares worth approximately $54.6 million over the past 90 days, though institutional investors continue to own a substantial 84.85% stake.

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report) have earned an average recommendation of "Moderate Buy" from the sixteen ratings firms that are currently covering the firm, MarketBeat Ratings reports. Three research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $405.6875.

CDNS has been the subject of several analyst reports. Oppenheimer restated a "market perform" rating and issued a $300.00 price objective on shares of Cadence Design Systems in a research note on Tuesday, July 28th. Wall Street Zen raised Cadence Design Systems from a "hold" rating to a "buy" rating in a report on Saturday, August 1st. Piper Sandler raised their price objective on Cadence Design Systems from $325.00 to $349.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 28th. Weiss Ratings raised Cadence Design Systems from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, July 30th. Finally, Robert W. Baird lifted their price objective on Cadence Design Systems from $415.00 to $420.00 and gave the company an "outperform" rating in a research report on Tuesday, July 28th.

Insider Activity at Cadence Design Systems

In other news, CEO Anirudh Devgan sold 25,005 shares of the stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $415.00, for a total value of $10,377,075.00. Following the completion of the sale, the chief executive officer directly owned 253,519 shares of the company's stock, valued at $105,210,385. This represents a 8.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 2,000 shares of the firm's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $391.00, for a total transaction of $782,000.00. Following the sale, the vice president owned 126,586 shares in the company, valued at $49,495,126. The trade was a 1.56% 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 140,557 shares of company stock worth $54,631,737 in the last 90 days. Insiders own 0.49% of the company's stock.

Institutional Investors Weigh In On Cadence Design Systems

Institutional investors have recently bought and sold shares of the business. Brighton Jones LLC raised its stake in Cadence Design Systems by 80.2% during the 4th quarter. Brighton Jones LLC now owns 1,519 shares of the software maker's stock valued at $456,000 after purchasing an additional 676 shares during the period. Integrated Wealth Concepts LLC grew its holdings in Cadence Design Systems by 3.8% during the 1st quarter. Integrated Wealth Concepts LLC now owns 2,203 shares of the software maker's stock valued at $560,000 after buying an additional 80 shares in the last quarter. Thompson Davis & CO. Inc. bought a new stake in shares of Cadence Design Systems during the second quarter valued at approximately $205,000. NewEdge Advisors LLC lifted its holdings in shares of Cadence Design Systems by 39.3% in the second quarter. NewEdge Advisors LLC now owns 34,787 shares of the software maker's stock worth $10,720,000 after buying an additional 9,807 shares in the last quarter. Finally, Glenview Trust co bought a new position in shares of Cadence Design Systems during the second quarter worth $226,000. Hedge funds and other institutional investors own 84.85% of the company's stock.

Cadence Design Systems Price Performance

NASDAQ CDNS opened at $337.07 on Thursday. The company has a 50-day moving average price of $370.06 and a 200-day moving average price of $330.45. Cadence Design Systems has a 52 week low of $262.75 and a 52 week high of $416.69. The company has a quick ratio of 1.53, a current ratio of 1.74 and a debt-to-equity ratio of 0.36. The firm has a market capitalization of $92.83 billion, a P/E ratio of 67.01, a PEG ratio of 3.65 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) 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 company had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.58 billion. During the same quarter last year, the firm posted $1.65 earnings per share. The firm's revenue 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 anticipate that Cadence Design Systems will post 6.4 earnings per share for the current year.

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.

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