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

Cadence Design Systems, Inc. (NASDAQ:CDNS) has been given an average rating of “Moderate Buy” by the twenty-two analysts that are covering the company, Marketbeat Ratings reports. Three analysts have rated the stock with a hold recommendation, eighteen have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month target price among analysts that have issued ratings on the stock in the last year is $404.14.

Several equities analysts have recently commented on CDNS shares. Robert W. Baird upped their price target on shares of Cadence Design Systems from $415.00 to $420.00 and gave the stock an “outperform” rating in a research report on Tuesday, July 28th. KeyCorp restated an “overweight” rating on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Morgan Stanley reiterated an “overweight” rating and issued a $400.00 price objective (up from $370.00) on shares of Cadence Design Systems in a report on Wednesday, July 29th. Bank of America upped their target price on Cadence Design Systems from $400.00 to $420.00 and gave the stock a “buy” rating in a research report on Tuesday, July 28th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $400.00 price target on shares of Cadence Design Systems in a research note on Tuesday, July 28th.

Insider Transactions at Cadence Design Systems

In related news, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the firm’s stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $350.07, for a total transaction of $437,587.50. Following the completion of the transaction, the director owned 39,544 shares of the company’s stock, valued at $13,843,168.08. This trade represents a 3.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita Brennan sold 180 shares of Cadence Design Systems stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $285.51, for a total value of $51,391.80. Following the transaction, the director directly owned 7,824 shares in the company, valued at approximately $2,233,830.24. The trade was a 2.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 8,960 shares of company stock worth $2,834,139. Corporate insiders own 0.49% of the company’s stock.

Institutional Trading of Cadence Design Systems

Several institutional investors and hedge funds have recently added to or reduced their stakes in CDNS. Penobscot Investment Management Company Inc. lifted its position in shares of Cadence Design Systems by 7.6% during the 3rd quarter. Penobscot Investment Management Company Inc. now owns 10,939 shares of the software maker’s stock valued at $3,612,000 after acquiring an additional 773 shares during the last quarter. Oppenheimer & Co. Inc. grew its holdings in shares of Cadence Design Systems by 40.3% in the 3rd quarter. Oppenheimer & Co. Inc. now owns 1,107 shares of the software maker’s stock worth $366,000 after acquiring an additional 318 shares during the last quarter. Peterson Wealth Services grew its holdings in shares of Cadence Design Systems by 3.7% in the 3rd quarter. Peterson Wealth Services now owns 12,655 shares of the software maker’s stock worth $4,178,000 after acquiring an additional 448 shares during the last quarter. Kingswood Wealth Advisors LLC raised its position in shares of Cadence Design Systems by 12.8% during the third quarter. Kingswood Wealth Advisors LLC now owns 1,024 shares of the software maker’s stock worth $338,000 after purchasing an additional 116 shares during the period. Finally, Citizens Financial Group Inc. RI raised its position in shares of Cadence Design Systems by 3.6% during the third quarter. Citizens Financial Group Inc. RI now owns 4,641 shares of the software maker’s stock worth $1,532,000 after purchasing an additional 162 shares during the period. 84.85% of the stock is owned by institutional investors and hedge funds.

Cadence Design Systems Stock Up 1.8%

Shares of Cadence Design Systems stock opened at $322.17 on Tuesday. The stock has a market capitalization of $88.72 billion, a price-to-earnings ratio of 64.05, a PEG ratio of 3.38 and a beta of 1.13. Cadence Design Systems has a twelve month low of $262.75 and a twelve month high of $416.69. The company has a current ratio of 1.74, a quick ratio of 1.53 and a debt-to-equity ratio of 0.36. The business’s 50 day simple moving average is $318.83 and its 200-day simple moving average is $326.92.

Cadence Design Systems (NASDAQ:CDNS) last released its quarterly earnings data on Monday, October 26th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.05 by $0.06. The business had revenue of $1.63 billion during the quarter, compared to analyst estimates of $1.61 billion. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%. The business’s revenue for the quarter was up 22.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.93 EPS. Equities research analysts forecast that Cadence Design Systems will post 6.42 earnings per share for the current year.

Key Cadence Design Systems News

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

• Positive Sentiment: Beat on earnings and revenue: Cadence reported third-quarter adjusted earnings of $2.11 per share, exceeding the $2.04-$2.05 consensus range, while revenue of $1.63 billion topped estimates of approximately $1.61 billion. Earnings also increased from $1.93 per share a year earlier. Cadence Design Systems Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Full-year outlook raised again: Management increased its fiscal 2026 guidance, reinforcing expectations for roughly 19% year-over-year revenue growth. Backlog reached approximately $8.2 billion, providing visibility into future demand. Cadence increases full-year fiscal 2026 guidance as backlog builds to $8.2B
• Positive Sentiment: AI product momentum: Cadence launched Nvidia-backed AI models that chipmakers can run internally, expanding its role in semiconductor design and potentially supporting demand for its electronic-design automation tools. Cadence unveils Nvidia-backed AI models that chipmakers can run in-house
• Positive Sentiment: Expanded capital return: Cadence’s board authorized an additional $2.5 billion for share repurchases, which could support per-share earnings and signal confidence in the company’s cash-generation outlook. Cadence Design expands share repurchase authorization
• Neutral Sentiment: Although CDNS increased, it underperformed several industry peers, suggesting that some of the positive earnings news may already have been reflected in the share price. Cadence stock underperforms competitors despite gains
• Negative Sentiment: Valuation and insider selling remain risks: With a reported P/E ratio above 64, expectations are high. Separate data also showed extensive insider selling and no reported insider purchases over the past six months, which could weigh on sentiment.

Cadence Design Systems Company Profile

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.