Cadence Design Systems (NASDAQ:CDNS) Sets New 52-Week High - Should You Buy?

Key Points

• Cadence Design Systems hit a new 52-week high, trading as high as $376.83 and closing up about 5.9% on the day. The move came alongside strong recent momentum in the stock.
• Recent earnings were solid: the company reported $1.96 EPS on $1.47 billion in revenue, both slightly ahead of estimates, with revenue up 18.6% year over year. Cadence also raised guidance for FY2026 and Q2 2026.
• Analyst sentiment remains positive overall, with 14 Buy ratings and 3 Holds, and a consensus price target of about $380.59. Some insiders have sold shares recently, but institutional ownership remains high at 84.85%.

Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Friday . The company traded as high as $376.83 and last traded at $374.1470, with a volume of 455335 shares. The stock had previously closed at $358.46.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on CDNS shares. Piper Sandler upped their price objective on Cadence Design Systems from $319.00 to $325.00 and gave the stock a "neutral" rating in a research note on Tuesday, April 28th. Stifel Nicolaus set a $395.00 price objective on Cadence Design Systems in a research note on Wednesday, February 18th. Robert W. Baird increased their price target on Cadence Design Systems from $381.00 to $385.00 and gave the company an "outperform" rating in a research note on Tuesday, April 28th. Rosenblatt Securities restated a "buy" rating and issued a $360.00 price target on shares of Cadence Design Systems in a research note on Friday, April 24th. Finally, KeyCorp increased their price target on Cadence Design Systems from $405.00 to $425.00 and gave the company an "overweight" rating in a research note on Tuesday, April 28th. Fourteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $380.59.

Cadence Design Systems Stock Up 5.9%

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 stock has a market cap of $104.72 billion, a P/E ratio of 88.49, a PEG ratio of 4.15 and a beta of 1.13. The firm has a 50-day simple moving average of $311.15 and a two-hundred day simple moving average of $310.74.

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 for the quarter, topping the consensus estimate of $1.91 by $0.05. The firm had revenue of $1.47 billion for the quarter, compared to analysts' expectations of $1.46 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The company's quarterly revenue was up 18.6% compared to the same quarter last year. During the same quarter last year, the business earned $1.57 EPS. 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. Equities research analysts expect that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Cadence Design Systems news, CFO John M. Wall sold 5,000 shares of the stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $348.71, for a total value of $1,743,550.00. Following the completion of the transaction, the chief financial officer directly owned 81,875 shares in the company, valued at approximately $28,550,631.25. This trade represents a 5.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 1,000 shares of the stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $337.49, for a total value of $337,490.00. Following the completion of the transaction, the vice president owned 127,586 shares of the company's stock, valued at $43,058,999.14. This represents a 0.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 41,251 shares of company stock valued at $13,294,350. 0.49% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cadence Design Systems

Several large investors have recently bought and sold shares of CDNS. Brighton Jones LLC raised its position in Cadence Design Systems by 80.2% in the fourth 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 last quarter. Integrated Wealth Concepts LLC raised its position in shares of Cadence Design Systems by 3.8% during the first quarter. Integrated Wealth Concepts LLC now owns 2,203 shares of the software maker's stock worth $560,000 after acquiring an additional 80 shares during the last quarter. Thompson Davis & CO. Inc. bought a new position in shares of Cadence Design Systems during the second quarter worth about $205,000. NewEdge Advisors LLC raised its position in shares of Cadence Design Systems by 39.3% during the second quarter. NewEdge Advisors LLC now owns 34,787 shares of the software maker's stock worth $10,720,000 after acquiring an additional 9,807 shares during the last quarter. Finally, Glenview Trust co bought a new position in shares of Cadence Design Systems during the second quarter worth about $226,000. 84.85% of the stock is currently owned by 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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