Piper Sandler Increases Cadence Design Systems (NASDAQ:CDNS) Price Target to $325.00

Key Points

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Cadence Design Systems (NASDAQ:CDNS - Get Free Report) had its target price lifted by research analysts at Piper Sandler from $319.00 to $325.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm currently has a "neutral" rating on the software maker's stock. Piper Sandler's target price suggests a potential downside of 3.48% from the company's previous close.

Other equities analysts have also recently issued research reports about the stock. Wells Fargo & Company lowered their target price on shares of Cadence Design Systems from $410.00 to $375.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 18th. Morgan Stanley lowered their target price on shares of Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 18th. Robert W. Baird raised their target price on shares of Cadence Design Systems from $381.00 to $385.00 and gave the company an "outperform" rating in a research note on Tuesday. KeyCorp reissued an "overweight" rating on shares of Cadence Design Systems in a research note on Tuesday. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Cadence Design Systems in a research note on Monday, December 29th. Fifteen research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $375.56.

Cadence Design Systems Stock Up 1.2%

CDNS stock opened at $336.74 on Tuesday. The company has a quick ratio of 2.67, a current ratio of 2.86 and a debt-to-equity ratio of 0.45. Cadence Design Systems has a fifty-two week low of $262.75 and a fifty-two week high of $376.45. The firm's 50-day simple moving average is $294.47 and its 200 day simple moving average is $309.05. The stock has a market cap of $92.97 billion, a PE ratio of 82.94, a price-to-earnings-growth ratio of 4.00 and a beta of 1.04.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its quarterly earnings data on Monday, April 27th. The software maker reported $1.96 earnings per share for the quarter, topping analysts' consensus estimates of $1.89 by $0.07. The business had revenue of $1.47 billion for the quarter, compared to analysts' expectations of $1.45 billion. Cadence Design Systems had a net margin of 20.93% and a return on equity of 29.34%. The company's revenue for the quarter was up 18.6% compared to the same quarter last year. During the same quarter last year, the company 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. As a group, sell-side analysts predict that Cadence Design Systems will post 6.51 EPS for the current year.

Insider Activity

In other news, CFO John M. Wall sold 21,500 shares of the firm's stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $309.45, for a total transaction of $6,653,175.00. Following the completion of the transaction, the chief financial officer owned 86,875 shares in the company, valued at approximately $26,883,468.75. This trade represents a 19.84% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible 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 firm's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $297.78, for a total transaction of $297,780.00. Following the completion of the transaction, the vice president owned 94,137 shares of the company's stock, valued at approximately $28,032,115.86. The trade was a 1.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 24,680 shares of company stock worth $7,579,340. Corporate insiders own 0.49% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in CDNS. Brighton Jones LLC boosted its holdings in shares of Cadence Design Systems by 80.2% in the fourth quarter. Brighton Jones LLC now owns 1,519 shares of the software maker's stock worth $456,000 after buying an additional 676 shares during the period. Integrated Wealth Concepts LLC boosted its holdings 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 purchasing an additional 80 shares during the period. Thompson Davis & CO. Inc. acquired a new stake in shares of Cadence Design Systems during the second quarter worth approximately $205,000. NewEdge Advisors LLC boosted its holdings 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 purchasing an additional 9,807 shares during the period. Finally, Glenview Trust co acquired a new stake in shares of Cadence Design Systems during the second quarter worth approximately $226,000. 84.85% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Cadence Design Systems

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

• Positive Sentiment: Q1 results beat consensus: EPS $1.96 vs. ~$1.89 and revenue $1.47B (up ~18.6% YoY), showing continued top‑line growth. Cadence Design Systems Tops Q1 Targets, Guides Above Views
• Positive Sentiment: Management raised FY‑2026 and Q2 guidance well above Street expectations (FY EPS guide 7.85–7.95 and revenue guide mid‑$6B; Q2 EPS 2.02–2.08 and revenue ~ $1.6B), driven by sustained demand for AI‑focused chip design tools. This is the primary catalyst for upside. Cadence lifts annual revenue forecast on sustained AI chip-design boom
• Neutral Sentiment: Management commentary and the full Q1 call transcript provide color on AI-related demand, product cadence and customer timing — useful for judging sustainability but not immediately price‑moving relative to the guide. Q1 2026 Earnings Call Transcript
• Negative Sentiment: Cash flow and liquidity mixed: operating cash flow declined (~27% YoY) and cash & equivalents fell markedly (~49% YoY) while total liabilities rose — investors may discount valuation because of weaker cash conversion. Quiver Quantitative: Stock Falls on Q1 2026 Earnings
• Negative Sentiment: Pre‑earnings options and insider activity signalled hedging/selling: unusually large put buying ahead of results and recent insider sell transactions may pressure sentiment despite the strong guide. (Options and insider details reported in market coverage and data feeds.)

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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