Cadence Design Systems, Inc. (NASDAQ:CDNS) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Cadence Design Systems has a consensus analyst rating of “Moderate Buy”, with 14 of 17 brokerages recommending buy and an average 12-month price target of about $380.59.
• Recent analyst updates were largely positive, with firms like Citigroup, KeyCorp, and Wells Fargo raising price targets, though Piper Sandler kept a neutral rating.
• The company also reported better-than-expected quarterly results, posting $1.96 EPS on $1.47 billion in revenue, while guiding FY 2026 EPS to 7.85–7.95.

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the seventeen brokerages that are covering the company, Marketbeat.com reports. Three research analysts have rated the stock with a hold recommendation and fourteen have issued a buy recommendation on the company. The average twelve-month price target among brokers that have updated their coverage on the stock in the last year is $380.5882.

A number of equities analysts have commented on CDNS shares. Piper Sandler lifted their target price on shares of Cadence Design Systems from $319.00 to $325.00 and gave the stock a "neutral" rating in a research note on Tuesday, April 28th. Citigroup lifted their target price on shares of Cadence Design Systems from $385.00 to $400.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. KeyCorp lifted their price target on shares of Cadence Design Systems from $405.00 to $425.00 and gave the company an "overweight" rating in a research report on Tuesday, April 28th. Wells Fargo & Company lifted their price target on shares of Cadence Design Systems from $375.00 to $400.00 and gave the company an "overweight" rating in a research report on Tuesday, April 28th. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $360.00 price target on shares of Cadence Design Systems in a research report on Friday, April 24th.

Insider Activity at Cadence Design Systems

In other Cadence Design Systems news, VP Paul Scannell sold 1,071 shares of Cadence Design Systems stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $345.06, for a total transaction of $369,559.26. Following the completion of the sale, the vice president directly owned 32,181 shares in the company, valued at $11,104,375.86. This trade represents a 3.22% decrease in their ownership of the stock. The sale 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 Cunningham sold 1,000 shares of Cadence Design Systems stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $337.49, for a total transaction of $337,490.00. Following the sale, the vice president owned 127,586 shares of the company's stock, valued at approximately $43,058,999.14. This represents a 0.78% 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 41,251 shares of company stock valued at $13,294,350 in the last ninety days. Insiders own 0.49% of the company's stock.

Institutional Investors Weigh In On Cadence Design Systems

A number of institutional investors have recently made changes to their positions in the stock. Peterson Wealth Services grew its holdings in shares of Cadence Design Systems by 1,501.3% in the third quarter. Peterson Wealth Services now owns 187,115 shares of the software maker's stock valued at $65,726,000 after purchasing an additional 175,430 shares in the last quarter. Thrivent Financial for Lutherans grew its holdings in shares of Cadence Design Systems by 301.9% in the third quarter. Thrivent Financial for Lutherans now owns 49,999 shares of the software maker's stock valued at $17,563,000 after purchasing an additional 37,558 shares in the last quarter. Sun Financial Inc acquired a new position in shares of Cadence Design Systems in the fourth quarter valued at approximately $1,225,000. DDD Partners LLC grew its holdings in shares of Cadence Design Systems by 27.4% in the fourth quarter. DDD Partners LLC now owns 41,968 shares of the software maker's stock valued at $13,118,000 after purchasing an additional 9,024 shares in the last quarter. Finally, Rakuten Investment Management Inc. acquired a new position in shares of Cadence Design Systems in the third quarter valued at approximately $5,806,000. 84.85% of the stock is currently owned by institutional investors and hedge funds.

Cadence Design Systems Price Performance

Shares of CDNS stock opened at $373.59 on Friday. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.47 and a quick ratio of 1.32. The firm's 50-day moving average is $312.73 and its two-hundred day moving average is $311.18. Cadence Design Systems has a 12 month low of $262.75 and a 12 month high of $381.55. The company has a market capitalization of $103.04 billion, a PE ratio of 87.08, a price-to-earnings-growth ratio of 4.24 and a beta of 1.13.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its earnings results on Monday, April 27th. The software maker reported $1.96 EPS for the quarter, topping analysts' consensus estimates of $1.91 by $0.05. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The company had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.46 billion. During the same period in the previous year, the firm earned $1.57 earnings per share. Cadence Design Systems's quarterly revenue was up 18.6% compared to the same quarter last year. 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. Analysts predict that Cadence Design Systems will post 6.23 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.