Cadence Design Systems, Inc. (NASDAQ:CDNS) Stock Has Average Target Price of $404.14

Key Points

• Cadence Design Systems has a “Moderate Buy” consensus rating from 22 analysts, with 18 buys, three holds and one strong buy. The average 12-month price target is $404.14, implying upside from the reported $325.86 opening price.
• The company reported quarterly EPS of $2.11, exceeding estimates of $2.05, while revenue rose 24.2% year over year to $1.58 billion. Management issued fiscal 2026 EPS guidance of $8.05–$8.15.
• Institutional investors own 84.85% of Cadence’s shares, while insiders sold $2.83 million worth of stock over the past 90 days, including transactions conducted under pre-arranged trading plans.

Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report) has received a consensus rating of "Moderate Buy" from the twenty-two ratings firms that are currently covering the stock, MarketBeat.com reports. Three investment analysts have rated the stock with a hold rating, eighteen have assigned a buy rating and one has assigned a strong buy rating to the company. The average 12 month price target among analysts that have covered the stock in the last year is $404.14.

Several analysts have issued reports on the company. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $420.00 price target (up from $400.00) on shares of Cadence Design Systems in a report on Wednesday, October 7th. FBN Securities initiated coverage on Cadence Design Systems in a research note on Friday, September 11th. They issued an "outperform" rating and a $375.00 price objective on the stock. Rosenblatt Securities raised their price objective on Cadence Design Systems from $410.00 to $420.00 and gave the stock a "buy" rating in a research note on Tuesday, July 28th. Bank of America lifted their price objective on Cadence Design Systems from $400.00 to $420.00 and gave the company a "buy" rating in a research report on Tuesday, July 28th. Finally, Wall Street Zen cut Cadence Design Systems from a "buy" rating to a "hold" rating in a research report on Tuesday.

Cadence Design Systems Trading Up 2.0%

Shares of CDNS stock opened at $325.86 on Tuesday. Cadence Design Systems has a 1 year low of $262.75 and a 1 year high of $416.69. The firm has a fifty day moving average price of $318.73 and a 200-day moving average price of $339.65. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.53. The company has a market cap of $89.74 billion, a price-to-earnings ratio of 64.78, a PEG ratio of 3.42 and a beta of 1.13.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, topping the consensus estimate of $2.05 by $0.06. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%. The firm had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.58 billion. During the same period in the prior year, the business posted $1.65 EPS. Cadence Design Systems's revenue was up 24.2% on a year-over-year basis. 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 analysts predict that Cadence Design Systems will post 6.41 earnings per share for the current year.

Insider Activity

In other Cadence Design Systems news, VP Paul Scannell sold 280 shares of Cadence Design Systems stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $339.00, for a total transaction of $94,920.00. Following the transaction, the vice president owned 31,720 shares of the company's stock, valued at $10,753,080. The trade was a 0.88% decrease in their ownership of the stock. The sale 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 Ita M. Brennan sold 180 shares of Cadence Design Systems stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $285.51, for a total transaction of $51,391.80. Following the transaction, the director directly owned 7,824 shares in the company, valued at $2,233,830.24. This represents a 2.25% decrease in their position. 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 90 days, insiders sold 8,960 shares of company stock valued at $2,834,139. 0.49% of the stock is owned by insiders.

Hedge Funds Weigh In On Cadence Design Systems

Hedge funds have recently modified their holdings of the company. Van ECK Associates Corp increased its stake in Cadence Design Systems by 21.8% in the second quarter. Van ECK Associates Corp now owns 4,889,765 shares of the software maker's stock worth $1,835,227,000 after purchasing an additional 874,392 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Cadence Design Systems by 1.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,385,655 shares of the software maker's stock worth $1,270,704,000 after purchasing an additional 48,937 shares during the last quarter. Assenagon Asset Management S.A. lifted its position in shares of Cadence Design Systems by 1,097.5% during the third quarter. Assenagon Asset Management S.A. now owns 2,818,141 shares of the software maker's stock worth $930,522,000 after purchasing an additional 2,582,812 shares during the last quarter. Legal & General Group Plc purchased a new stake in shares of Cadence Design Systems during the second quarter valued at $702,615,000. Finally, Jupiter Topco LLC purchased a new stake in shares of Cadence Design Systems during the second quarter valued at $688,746,000. 84.85% of the stock is currently owned by institutional investors.

About Cadence Design Systems

Cadence Design Systems, Inc develops computational software, hardware, and semiconductor intellectual property used to design and verify electronic systems and integrated circuits. Its electronic design automation (EDA) solutions support chip development across areas such as digital and custom IC design, functional verification, emulation, prototyping, and system analysis.

The company also provides semiconductor IP, including processor cores, interconnect technologies, memory interfaces, and other building blocks that help customers develop complex chips.

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