Cadence Design Systems (NASDAQ:CDNS) Price Target Raised to $349.00

Cadence Design Systems (NASDAQ:CDNS) had its target price boosted by Piper Sandler from $325.00 to $349.00 in a research report sent to investors on Tuesday morning, Marketbeat.com reports. The firm currently has a neutral rating on the software maker’s stock.

Other equities analysts have also issued reports about the stock. Berenberg Bank set a $440.00 price objective on shares of Cadence Design Systems in a research report on Wednesday, May 27th. Robert W. Baird upped their target price on shares of Cadence Design Systems from $415.00 to $420.00 and gave the stock an “outperform” rating in a report on Tuesday. Needham & Company LLC reiterated a “buy” rating and issued a $400.00 target price on shares of Cadence Design Systems in a research note on Tuesday. Benchmark assumed coverage on shares of Cadence Design Systems in a report on Wednesday, July 15th. They issued a “buy” rating and a $450.00 price target for the company. Finally, Rosenblatt Securities boosted their price target 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. Thirteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, Cadence Design Systems currently has an average rating of “Moderate Buy” and a consensus target price of $405.69.

Cadence Design Systems Stock Performance

NASDAQ:CDNS opened at $332.82 on Tuesday. The business’s fifty day moving average is $373.04 and its 200 day moving average is $329.95. The firm has a market cap of $91.80 billion, a price-to-earnings ratio of 66.17, a PEG ratio of 3.79 and a beta of 1.15. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.32 and a current ratio of 1.74. Cadence Design Systems has a 52-week low of $262.75 and a 52-week high of $416.69.

Cadence Design Systems (NASDAQ:CDNS) last posted its earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share for the quarter, beating analysts’ consensus estimates 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 business had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.58 billion. During the same quarter in the previous year, the firm earned $1.65 EPS. The company’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. Research analysts predict that Cadence Design Systems will post 6.39 EPS for the current year.

Insider Activity at Cadence Design Systems

In other Cadence Design Systems news, VP Paul Cunningham sold 2,000 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $391.00, for a total transaction of $782,000.00. Following the sale, the vice president owned 126,586 shares in the company, valued at $49,495,126. This trade represents a 1.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 7,081 shares of the firm’s stock in a transaction dated 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 owned 32,181 shares in the company, valued at $12,676,417.71. The trade was a 18.04% decrease in their position. 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 sold a total of 145,557 shares of company stock worth $56,375,287 in the last three months. 0.49% of the stock is owned by insiders.

Hedge Funds Weigh In On Cadence Design Systems

Hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its holdings in shares of Cadence Design Systems by 1.1% during the 4th quarter. Vanguard Group Inc. now owns 27,231,070 shares of the software maker’s stock valued at $8,511,888,000 after buying an additional 307,753 shares in the last quarter. State Street Corp lifted its position in Cadence Design Systems by 1.1% in the 4th quarter. State Street Corp now owns 12,603,368 shares of the software maker’s stock worth $3,939,561,000 after buying an additional 135,206 shares during the last quarter. Geode Capital Management LLC boosted its stake in Cadence Design Systems by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 7,627,272 shares of the software maker’s stock worth $2,378,707,000 after buying an additional 92,152 shares in the last quarter. Norges Bank purchased a new stake in Cadence Design Systems in the fourth quarter worth approximately $1,352,922,000. Finally, Van ECK Associates Corp grew its position in Cadence Design Systems by 11.9% during the fourth quarter. Van ECK Associates Corp now owns 3,534,180 shares of the software maker’s stock valued at $1,104,714,000 after acquiring an additional 376,654 shares during the last quarter. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

More Cadence Design Systems News

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

• Positive Sentiment: Cadence exceeded second-quarter 2026 earnings expectations, reporting $2.11 in adjusted EPS versus the $2.05 consensus estimate. Revenue increased 24.2% year over year to $1.58 billion, supported by demand for AI and advanced-chip design tools. Cadence Q2 Earnings Top Estimates on AI Demand, Backlog Hits $8.1B
• Positive Sentiment: Record backlog of approximately $8.1 billion provides visibility into future sales and was cited by analysts as evidence that agentic AI and broader semiconductor investment can extend Cadence’s growth. Cadence rises after Q2 beat as analysts highlight record backlog
• Positive Sentiment: Management raised its full-year 2026 outlook to $8.05–$8.15 in EPS and issued third-quarter guidance of $2.01–$2.07, reinforcing confidence in continued demand.
• Positive Sentiment: Several Wall Street firms remain constructive: Needham reiterated a Buy rating, while Rosenblatt raised its price target to $420. Baird, Bank of America and Piper Sandler analysts also anticipate further appreciation. Rosenblatt raises Cadence price target
• Neutral Sentiment: The earnings call and related research suggest growth is broadening beyond AI, potentially supporting another earnings-driven advance if Cadence converts its backlog into revenue. Cadence earnings call signals AI-driven surge
• Negative Sentiment: At roughly 54 times earnings, CDNS remains expensive, and some commentary warns that the share price already discounts years of strong execution. This rich valuation could limit upside or amplify pressure if growth slows. Cadence keeps winning, but the share price is years ahead

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.