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

Key Points

• Bank of America raised Cadence Design Systems’ price target to $420 from $400 and maintained a “buy” rating, implying 21.44% upside from the stock’s current price.
• Analyst sentiment remains positive overall: 15 analysts rate CDNS a buy and three rate it a hold, producing a “Moderate Buy” consensus and average target of $401.44.
• Cadence beat quarterly EPS estimates with $2.11 versus $2.05 expected, while revenue rose 24.2% year over year to $1.58 billion; management also issued fiscal 2026 EPS guidance of $8.05-$8.15 amid strong AI-related demand and an $8.1 billion backlog.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) had its target price raised by investment analysts at Bank of America from $400.00 to $420.00 in a report released on Tuesday,Benzinga reports. The brokerage presently has a "buy" rating on the software maker's stock. Bank of America's target price indicates a potential upside of 21.44% from the stock's current price.

CDNS has been the subject of a number of other reports. Rosenblatt Securities upped their price target on Cadence Design Systems from $410.00 to $420.00 and gave the company a "buy" rating in a research report on Tuesday. Oppenheimer reissued a "market perform" rating and set a $300.00 price objective on shares of Cadence Design Systems in a research note on Tuesday. Robert W. Baird raised their target price on Cadence Design Systems from $415.00 to $420.00 and gave the stock an "outperform" rating in a research note on Tuesday. Citigroup lifted their price target on Cadence Design Systems from $400.00 to $420.00 and gave the stock a "buy" rating in a report on Tuesday. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Cadence Design Systems in a research report on Thursday, July 2nd. Fifteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $401.44.

Cadence Design Systems Price Performance

CDNS stock traded up $7.25 during midday trading on Tuesday, reaching $345.86. The stock had a trading volume of 2,694,849 shares, compared to its average volume of 2,470,666. Cadence Design Systems has a 52-week low of $262.75 and a 52-week high of $416.69. The company has a current ratio of 1.47, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38. The company's fifty day simple moving average is $373.77 and its 200 day simple moving average is $329.63. The company has a market cap of $95.40 billion, a price-to-earnings ratio of 80.63, a price-to-earnings-growth ratio of 3.86 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its earnings results on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, beating analysts' consensus estimates of $2.05 by $0.06. The business 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 21.18% and a return on equity of 28.44%. The company's quarterly revenue was up 24.2% compared to the same quarter last year. During the same period in the prior year, the business earned $1.65 earnings per share. 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, sell-side analysts predict 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 related news, Director James D. Plummer sold 1,511 shares of the firm'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 sale, the director directly owned 23,264 shares of the company's stock, valued at approximately $8,871,493.76. This trade represents a 6.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 10,500 shares of the business's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $339.00, for a total transaction of $3,559,500.00. Following the completion of the sale, the vice president owned 33,946 shares in the company, valued at approximately $11,507,694. This trade represents a 23.62% 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. In the last quarter, insiders sold 157,057 shares of company stock worth $60,272,277. Insiders own 0.49% of the company's stock.

Hedge Funds Weigh In On Cadence Design Systems

Several large investors have recently made changes to their positions in CDNS. Pinnacle Wealth Management Advisory Group LLC boosted its position in shares of Cadence Design Systems by 3.1% during the first quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,033 shares of the software maker's stock worth $287,000 after buying an additional 31 shares during the period. Westfuller Advisors LLC boosted its holdings in Cadence Design Systems by 8.2% during the 1st quarter. Westfuller Advisors LLC now owns 408 shares of the software maker's stock valued at $113,000 after acquiring an additional 31 shares during the period. Spirepoint Private Client LLC increased its stake in Cadence Design Systems by 4.6% during the fourth quarter. Spirepoint Private Client LLC now owns 722 shares of the software maker's stock worth $226,000 after purchasing an additional 32 shares during the period. Cornerstone Planning Group LLC lifted its position in shares of Cadence Design Systems by 32.0% during the first quarter. Cornerstone Planning Group LLC now owns 132 shares of the software maker's stock worth $37,000 after purchasing an additional 32 shares in the last quarter. Finally, KCM Investment Advisors LLC boosted its stake in shares of Cadence Design Systems by 0.4% in the first quarter. KCM Investment Advisors LLC now owns 8,013 shares of the software maker's stock valued at $2,227,000 after purchasing an additional 32 shares during the period. 84.85% of the stock is currently owned by institutional investors and hedge funds.

More Cadence Design Systems News

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

• Positive Sentiment: Q2 earnings beat expectations: Cadence reported adjusted EPS of $2.11, above the $2.05 consensus, while revenue reached $1.58 billion, up 24.2% year over year and broadly in line with estimates. Cadence Design Systems Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Higher full-year outlook: Management raised its 2026 revenue and profit forecasts, with revenue guidance of approximately $6.3 billion and EPS guidance of $8.05-$8.15. Third-quarter EPS guidance of $2.01-$2.07 also exceeds the reported analyst consensus of $1.84. Cadence Raises Annual Forecasts as Demand Booms for AI Chip Design
• Positive Sentiment: AI demand and backlog support growth: Robust demand for AI-powered chip and system-design tools, increasing adoption of agentic AI and a record $8.1 billion backlog point to sustained customer spending across AI and high-performance computing. Cadence indicated approximately 19% 2026 revenue growth. Cadence Signals 19 Percent 2026 Revenue Growth
• Positive Sentiment: Analyst targets increased: Rosenblatt and Robert W. Baird raised their price targets to $420 and maintained bullish ratings. Needham reaffirmed its buy rating with a $400 target.
• Neutral Sentiment: Mixed analyst positioning: Piper Sandler raised its target to $349 but retained a neutral rating, suggesting limited near-term upside at its valuation.

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.

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