Bank of America Issues Positive Forecast for Cadence Design Systems (NASDAQ:CDNS) Stock Price

Cadence Design Systems (NASDAQ:CDNS) had its price objective hoisted by investment analysts at Bank of America from $400.00 to $420.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm currently has a “buy” rating on the software maker’s stock. Bank of America‘s price target indicates a potential upside of 21.44% from the company’s current price.

A number of other brokerages have also weighed in on CDNS. Berenberg Bank set a $440.00 price objective on shares of Cadence Design Systems in a report on Wednesday, May 27th. Stifel Nicolaus boosted their target price on shares of Cadence Design Systems from $395.00 to $432.00 and gave the stock a “buy” rating in a research note on Tuesday, June 9th. Rosenblatt Securities raised their price target on Cadence Design Systems from $410.00 to $420.00 and gave the company a “buy” rating in a research note on Tuesday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Cadence Design Systems in a report on Thursday, July 2nd. Finally, Benchmark reaffirmed a “buy” rating on shares of Cadence Design Systems in a research report on Tuesday. Fifteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $401.44.

Cadence Design Systems Stock Up 2.1%

CDNS stock traded up $7.25 during mid-day trading on Tuesday, reaching $345.86. The company had a trading volume of 2,694,849 shares, compared to its average volume of 2,470,666. The firm has a fifty day simple moving average of $373.77 and a 200 day simple moving average of $329.63. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.47. The company has a market capitalization of $95.40 billion, a price-to-earnings ratio of 80.63, 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.

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

Insider Transactions at Cadence Design Systems

In related news, VP Paul Cunningham sold 2,000 shares of Cadence Design Systems stock in a transaction on Monday, June 15th. The shares were sold at an average price of $391.00, for a total transaction of $782,000.00. Following the sale, the vice president directly owned 126,586 shares in the company, valued at $49,495,126. This trade represents a 1.56% decrease in their position. The sale was disclosed in a legal filing 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, VP Paul Scannell sold 10,500 shares of the company’s stock in a transaction on Friday, May 1st. The shares were sold at an average price of $339.00, for a total transaction of $3,559,500.00. Following the completion of the transaction, the vice president owned 33,946 shares of the company’s stock, valued at $11,507,694. This represents a 23.62% 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. Over the last three months, insiders sold 157,057 shares of company stock worth $60,272,277. Insiders own 0.49% of the company’s stock.

Institutional Investors Weigh In On Cadence Design Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Norges Bank acquired a new stake in shares of Cadence Design Systems in the fourth quarter valued at approximately $1,352,922,000. J. Stern & Co. LLP raised its position in Cadence Design Systems by 10,159.3% in the 4th quarter. J. Stern & Co. LLP now owns 2,953,256 shares of the software maker’s stock valued at $923,129,000 after purchasing an additional 2,924,470 shares during the last quarter. Wellington Management Group LLP boosted its stake in Cadence Design Systems by 218.6% during the 4th quarter. Wellington Management Group LLP now owns 2,553,225 shares of the software maker’s stock worth $798,087,000 after purchasing an additional 1,751,927 shares during the period. Arrowstreet Capital Limited Partnership boosted its stake in Cadence Design Systems by 232.1% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,430,599 shares of the software maker’s stock worth $397,521,000 after purchasing an additional 999,862 shares during the period. Finally, Scge Management L.P. purchased a new position in Cadence Design Systems during the 2nd quarter worth $187,663,000. Hedge funds and other institutional investors own 84.85% of the company’s stock.

Key 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 EPS of $2.11, above the $2.05 consensus, while revenue reached $1.58 billion, up 24.2% year over year and broadly in line with estimates. Cadence Design Systems Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Higher full-year outlook: Management raised its 2026 revenue and profit forecasts, with revenue guidance of approximately $6.3 billion and EPS guidance of $8.05-$8.15. Third-quarter EPS guidance of $2.01-$2.07 also exceeds the reported analyst consensus of $1.84. Cadence Raises Annual Forecasts as Demand Booms for AI Chip Design
• Positive Sentiment: AI demand and backlog support growth: Robust demand for AI-powered chip and system-design tools, increasing adoption of agentic AI and a record $8.1 billion backlog point to sustained customer spending across AI and high-performance computing. Cadence indicated approximately 19% 2026 revenue growth. Cadence Signals 19 Percent 2026 Revenue Growth
• Positive Sentiment: Analyst targets increased: Rosenblatt and Robert W. Baird raised their price targets to $420 and maintained bullish ratings. Needham reaffirmed its buy rating with a $400 target.
• Neutral Sentiment: Mixed analyst positioning: Piper Sandler raised its target to $349 but retained a neutral rating, suggesting limited near-term upside at its valuation.

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.