Robert W. Baird Forecasts Strong Price Appreciation for Cadence Design Systems (NASDAQ:CDNS) Stock

Key Points

• Robert W. Baird raised Cadence Design Systems’ price target to $420 from $415 and maintained an “outperform” rating, implying approximately 24% upside from the prior close.
• Cadence reported quarterly EPS of $2.11, beating the $2.05 consensus, while revenue rose 24.2% year over year to $1.58 billion. Management also issued 2026 EPS guidance of $8.05–$8.15 and stronger-than-expected third-quarter guidance.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $397.12, although the stock’s elevated valuation and recent insider selling present potential risks.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) had its price objective boosted by research analysts at Robert W. Baird from $415.00 to $420.00 in a research report issued on Tuesday,Benzinga reports. The firm currently has an "outperform" rating on the software maker's stock. Robert W. Baird's price target would indicate a potential upside of 24.04% from the stock's previous close.

Other research analysts also recently issued reports about the stock. Rosenblatt Securities increased their target price on shares of Cadence Design Systems from $375.00 to $410.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Piper Sandler boosted their price target on shares of Cadence Design Systems from $319.00 to $325.00 and gave the company a "neutral" rating in a research report on Tuesday, April 28th. KeyCorp upped their price objective on shares of Cadence Design Systems from $405.00 to $425.00 and gave the company an "overweight" rating in a research note on Tuesday, April 28th. Benchmark began coverage on Cadence Design Systems in a report on Wednesday, July 15th. They set a "buy" rating and a $450.00 price objective on the stock. Finally, Stifel Nicolaus lifted their target price on Cadence Design Systems from $395.00 to $432.00 and gave the stock a "buy" rating in a research report on Tuesday, June 9th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $397.12.

Cadence Design Systems Price Performance

Shares of NASDAQ CDNS opened at $338.61 on Tuesday. The stock's 50-day simple moving average is $373.77 and its 200-day simple moving average is $329.63. The firm has a market capitalization of $93.40 billion, a PE ratio of 78.93, a price-to-earnings-growth ratio of 3.86 and a beta of 1.15. Cadence Design Systems has a fifty-two week low of $262.75 and a fifty-two week high of $416.69. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.47.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.05 by $0.06. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The firm had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.58 billion. During the same period in the prior year, the company posted $1.65 earnings per share. The firm's quarterly revenue was up 24.2% compared to the same quarter last year. 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 forecast that Cadence Design Systems will post 6.23 EPS for the current fiscal year.

Insider Transactions at Cadence Design Systems

In other Cadence Design Systems news, CEO Anirudh Devgan sold 25,005 shares of Cadence Design Systems stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $415.00, for a total value of $10,377,075.00. Following the transaction, the chief executive officer directly owned 253,519 shares in the company, valued at approximately $105,210,385. The trade was a 8.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita M. Brennan sold 180 shares of the company's stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $387.45, for a total transaction of $69,741.00. Following the completion of the sale, the director directly owned 8,004 shares of the company's stock, valued at $3,101,149.80. The trade was a 2.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 157,057 shares of company stock worth $60,272,277 over the last 90 days. Company insiders own 0.49% of the company's stock.

Hedge Funds Weigh In On Cadence Design Systems

Institutional investors have recently added to or reduced their stakes in the stock. Pinnacle Wealth Management Advisory Group LLC lifted its position in Cadence Design Systems by 3.1% during the 1st quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,033 shares of the software maker's stock worth $287,000 after acquiring an additional 31 shares during the period. Westfuller Advisors LLC raised its stake in shares of Cadence Design Systems by 8.2% during the first quarter. Westfuller Advisors LLC now owns 408 shares of the software maker's stock worth $113,000 after purchasing an additional 31 shares during the last quarter. Spirepoint Private Client LLC raised its stake in shares of 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 last quarter. Cornerstone Planning Group LLC lifted its holdings 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 during the period. Finally, KCM Investment Advisors LLC grew its position in Cadence Design Systems by 0.4% in the 1st quarter. KCM Investment Advisors LLC now owns 8,013 shares of the software maker's stock valued at $2,227,000 after buying an additional 32 shares during the last quarter. Institutional investors and hedge funds own 84.85% of the company's stock.

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 earnings of $2.11 per share, above the $2.05 consensus estimate. Revenue reached $1.58 billion, in line with expectations but up 24.2% year over year. Cadence Design Systems Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Raised full-year guidance: Management projected 2026 earnings of $8.05-$8.15 per share and revenue of approximately $6.3 billion, modestly above prior expectations. Third-quarter EPS guidance of $2.01-$2.07 also exceeded the $1.84 analyst consensus. Cadence raises annual forecasts as demand booms for AI chip design
• Positive Sentiment: AI-driven demand remains strong: Cadence cited robust customer spending on AI-powered chip and system design software. Reports highlighted a record $8.1 billion backlog and expanding partnerships around agentic AI, supporting expectations for roughly 19% revenue growth in 2026. Cadence signals 19 percent 2026 revenue growth
• Neutral Sentiment: Valuation remains demanding: With CDNS trading at a high earnings multiple and above its 200-day moving average, continued share-price gains may depend on the company sustaining elevated growth and converting its backlog into revenue.

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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