Cadence Design Systems (NASDAQ:CDNS) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Cadence Design Systems to “buy” from “hold.” The broader analyst consensus is “Moderate Buy,” with 13 Buy ratings, three Holds, and an average price target of $405.69.
• Cadence reported quarterly EPS of $2.11, topping the $2.05 consensus estimate, while revenue reached $1.58 billion and increased 24.2% year over year. The company issued fiscal 2026 EPS guidance of $8.05 to $8.15.
• CDNS opened at $340.02, with a market capitalization of approximately $93.78 billion and a P/E ratio of 67.60. Insiders sold $56.4 million worth of shares during the latest quarter, while institutional investors own 84.85% of the stock.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Saturday.

Several other brokerages have also issued reports on CDNS. Bank of America raised their target price on shares of Cadence Design Systems from $400.00 to $420.00 and gave the company a "buy" rating in a research note on Tuesday. Citigroup boosted their price target on shares of Cadence Design Systems from $400.00 to $420.00 and gave the stock a "buy" rating in a research note on Tuesday. KeyCorp restated an "overweight" rating on shares of Cadence Design Systems in a report on Tuesday. Benchmark reaffirmed a "buy" rating on shares of Cadence Design Systems in a research note on Tuesday. Finally, Piper Sandler lifted their target price on shares of Cadence Design Systems from $325.00 to $349.00 and gave the stock a "neutral" rating in a report on Tuesday. Thirteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Cadence Design Systems presently has a consensus rating of "Moderate Buy" and a consensus price target of $405.69.

Cadence Design Systems Trading Up 2.2%

CDNS stock opened at $340.02 on Friday. The company has a quick ratio of 1.32, a current ratio of 1.74 and a debt-to-equity ratio of 0.36. Cadence Design Systems has a twelve month low of $262.75 and a twelve month high of $416.69. The company has a market cap of $93.78 billion, a P/E ratio of 67.60, a PEG ratio of 3.57 and a beta of 1.15. The business has a fifty day moving average of $372.37 and a 200-day moving average of $330.02.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.06. The business had revenue of $1.58 billion for the quarter, compared to analysts' expectations of $1.58 billion. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%.The firm's quarterly revenue was up 24.2% compared to the same quarter last year. During the same quarter last 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, equities research analysts expect that Cadence Design Systems will post 6.4 EPS for the current year.

Insider Buying and Selling

In related news, VP Paul Scannell sold 7,081 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $393.91, for a total value of $2,789,276.71. Following the sale, the vice president directly owned 32,181 shares in the company, valued at $12,676,417.71. This trade represents a 18.04% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James D. Plummer sold 1,511 shares of Cadence Design Systems stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $381.34, for a total transaction of $576,204.74. Following the transaction, the director directly owned 23,264 shares in the company, valued at $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 sold a total of 145,557 shares of company stock worth $56,375,287 over the last quarter. Insiders own 0.49% of the company's stock.

Hedge Funds Weigh In On Cadence Design Systems

Institutional investors and hedge funds have recently made changes to their positions in the company. MUFG Securities EMEA plc raised its position in shares of Cadence Design Systems by 113.9% during the fourth quarter. MUFG Securities EMEA plc now owns 11,159 shares of the software maker's stock worth $3,488,000 after acquiring an additional 5,943 shares during the last quarter. Sun Financial Inc bought a new stake in Cadence Design Systems in the fourth quarter valued at approximately $1,225,000. DDD Partners LLC increased its position in Cadence Design Systems by 27.4% during the 4th 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 during the period. Leonteq Securities AG acquired a new stake in Cadence Design Systems during the 4th quarter valued at approximately $1,105,000. Finally, PNC Financial Services Group Inc. raised its holdings in Cadence Design Systems by 1.0% during the 4th quarter. PNC Financial Services Group Inc. now owns 369,717 shares of the software maker's stock worth $115,566,000 after purchasing an additional 3,562 shares during the last quarter. Institutional investors and hedge funds own 84.85% of the company's stock.

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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