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

Key Points

• Cadence Design Systems has a consensus analyst rating of “Moderate Buy”, with 14 buy ratings and 3 hold ratings across 17 covering firms. The average 1-year price target is about $386.59.
• The company reported better-than-expected quarterly results, posting EPS of $1.96 versus $1.91 expected and revenue of $1.47 billion versus $1.46 billion estimated. Revenue rose 18.6% year over year, and Cadence issued FY2026 EPS guidance of 7.85–7.95.
• Shares were down 1.7% in the session described, despite trading near the top of their 52-week range. Insider selling has also been notable, with executives and directors selling shares over the past 90 days.

Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the seventeen research firms that are currently covering the company, MarketBeat.com reports. Three investment analysts have rated the stock with a hold recommendation and fourteen have assigned a buy recommendation to the company. The average 1 year price objective among analysts that have issued ratings on the stock in the last year is $386.5882.

CDNS has been the subject of a number of recent research reports. Wells Fargo & Company lifted their price target on shares of Cadence Design Systems from $400.00 to $425.00 and gave the company an "overweight" rating in a research report on Tuesday, May 26th. Robert W. Baird upped their price objective on shares of Cadence Design Systems from $381.00 to $385.00 and gave the stock an "outperform" rating in a report on Tuesday, April 28th. Piper Sandler raised their target price on shares of Cadence Design Systems from $319.00 to $325.00 and gave the company a "neutral" rating in a research note on Tuesday, April 28th. Morgan Stanley lowered their target price on shares of Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating for the company in a report on Wednesday, February 18th. Finally, KeyCorp boosted their price target on Cadence Design Systems from $405.00 to $425.00 and gave the stock an "overweight" rating in a research report on Tuesday, April 28th.

Cadence Design Systems Trading Down 1.7%

NASDAQ CDNS opened at $387.85 on Wednesday. The firm has a market capitalization of $106.98 billion, a PE ratio of 90.41, a P/E/G ratio of 4.67 and a beta of 1.15. The stock's 50 day moving average is $348.82 and its 200 day moving average is $320.05. Cadence Design Systems has a twelve month low of $262.75 and a twelve month high of $416.69. The company has a quick ratio of 1.32, a current ratio of 1.47 and a debt-to-equity ratio of 0.38.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings data on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.91 by $0.05. The business had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.46 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The firm's quarterly revenue was up 18.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.57 earnings per share. Cadence Design Systems has set its FY 2026 guidance at 7.850-7.950 EPS and its Q2 2026 guidance at 2.020-2.080 EPS. Research analysts forecast that Cadence Design Systems will post 6.23 earnings per share for the current fiscal year.

Insider Buying and Selling at Cadence Design Systems

In other news, VP Paul Scannell sold 10,500 shares of Cadence Design Systems stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $339.00, for a total value of $3,559,500.00. Following the completion of the transaction, the vice president owned 33,946 shares of the company's stock, valued at $11,507,694. The trade was a 23.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James D. Plummer sold 1,511 shares of the company's stock in a transaction dated Thursday, June 11th. The stock was 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 in the company, valued at approximately $8,871,493.76. The trade was a 6.10% 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 177,557 shares of company stock valued at $66,423,642 in the last ninety days. Corporate insiders own 0.49% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Brighton Jones LLC lifted its stake in shares of Cadence Design Systems by 80.2% in the fourth quarter. Brighton Jones LLC now owns 1,519 shares of the software maker's stock worth $456,000 after buying an additional 676 shares in the last quarter. Integrated Wealth Concepts LLC boosted its stake 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 purchasing an additional 80 shares during the last quarter. Thompson Davis & CO. Inc. purchased a new stake in Cadence Design Systems during the 2nd quarter valued at $205,000. NewEdge Advisors LLC increased its holdings in shares of Cadence Design Systems by 39.3% in the 2nd quarter. NewEdge Advisors LLC now owns 34,787 shares of the software maker's stock worth $10,720,000 after purchasing an additional 9,807 shares in the last quarter. Finally, Glenview Trust co bought a new stake in shares of Cadence Design Systems in the 2nd quarter worth $226,000. 84.85% of the stock is owned by hedge funds and other institutional investors.

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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