Cadence Design Systems’ (CDNS) “Buy” Rating Reiterated at Rosenblatt Securities

Cadence Design Systems (NASDAQ:CDNS)‘s stock had its “buy” rating reaffirmed by stock analysts at Rosenblatt Securities in a research note issued on Friday,Benzinga reports. They presently have a $360.00 price target on the software maker’s stock. Rosenblatt Securities’ target price would indicate a potential upside of 14.53% from the stock’s previous close.

Other equities research analysts have also issued reports about the company. Weiss Ratings restated a “hold (c)” rating on shares of Cadence Design Systems in a research report on Monday, December 29th. Morgan Stanley lowered their price objective on Cadence Design Systems from $385.00 to $370.00 and set an “overweight” rating for the company in a research report on Wednesday, February 18th. Stifel Nicolaus set a $395.00 price target on Cadence Design Systems in a research note on Wednesday, February 18th. Needham & Company LLC upped their price target on Cadence Design Systems from $390.00 to $400.00 and gave the stock a “buy” rating in a research note on Monday. Finally, Piper Sandler reduced their price objective on Cadence Design Systems from $355.00 to $319.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 18th. Fifteen investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Cadence Design Systems presently has a consensus rating of “Moderate Buy” and an average price target of $377.06.

Cadence Design Systems Stock Performance

NASDAQ CDNS opened at $314.33 on Friday. The stock has a market capitalization of $86.78 billion, a price-to-earnings ratio of 77.42, a PEG ratio of 3.98 and a beta of 1.04. Cadence Design Systems has a twelve month low of $262.75 and a twelve month high of $376.45. The company has a current ratio of 2.86, a quick ratio of 2.67 and a debt-to-equity ratio of 0.45. The stock has a 50-day moving average of $293.06 and a 200 day moving average of $309.82.

Cadence Design Systems (NASDAQ:CDNS) last announced its earnings results on Tuesday, February 17th. The software maker reported $1.99 EPS for the quarter, beating analysts’ consensus estimates of $1.91 by $0.08. Cadence Design Systems had a return on equity of 29.34% and a net margin of 20.93%.The business had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.42 billion. During the same quarter in the prior year, the firm earned $1.88 earnings per share. The business’s revenue was up 6.2% compared to the same quarter last year. Cadence Design Systems has set its Q1 2026 guidance at 1.890-1.950 EPS and its FY 2026 guidance at 8.050-8.150 EPS. Sell-side analysts anticipate that Cadence Design Systems will post 6.51 EPS for the current fiscal year.

Insiders Place Their Bets

In other Cadence Design Systems news, Director Ita M. Brennan sold 180 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $295.03, for a total transaction of $53,105.40. Following the transaction, the director owned 7,470 shares of the company’s stock, valued at approximately $2,203,874.10. This trade represents a 2.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO John M. Wall sold 21,500 shares of the firm’s stock in a transaction dated Thursday, April 16th. The stock was sold at an average price of $309.45, for a total value of $6,653,175.00. Following the transaction, the chief financial officer directly owned 86,875 shares in the company, valued at approximately $26,883,468.75. The trade was a 19.84% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 24,680 shares of company stock valued at $7,579,340. 0.49% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cadence Design Systems

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Impact Partnership Wealth LLC grew its holdings in shares of Cadence Design Systems by 10.8% during the first quarter. Impact Partnership Wealth LLC now owns 1,125 shares of the software maker’s stock worth $313,000 after buying an additional 110 shares during the last quarter. Eagle Wealth Advisors LLC lifted its position in shares of Cadence Design Systems by 12.5% during the 1st quarter. Eagle Wealth Advisors LLC now owns 1,220 shares of the software maker’s stock valued at $339,000 after acquiring an additional 136 shares during the period. Premier Path Wealth Partners LLC lifted its position in shares of Cadence Design Systems by 23.4% during the 1st quarter. Premier Path Wealth Partners LLC now owns 1,172 shares of the software maker’s stock valued at $326,000 after acquiring an additional 222 shares during the period. Caliber Wealth Management LLC KS lifted its position in shares of Cadence Design Systems by 22.0% during the 1st quarter. Caliber Wealth Management LLC KS now owns 6,028 shares of the software maker’s stock valued at $1,675,000 after acquiring an additional 1,088 shares during the period. Finally, Moss Adams Wealth Advisors LLC raised its position in shares of Cadence Design Systems by 4.9% during the 1st quarter. Moss Adams Wealth Advisors LLC now owns 1,337 shares of the software maker’s stock worth $372,000 after purchasing an additional 62 shares during the last quarter. 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: Expanded collaboration with TSMC to deliver signoff‑ready flows, silicon‑proven IP and certified tool chains for leading-edge nodes (N3/N2/A16/A14), which should speed advanced AI‑chip development and improve customer time‑to‑market. Cadence Expands TSMC Alliance to Boost Advanced AI Chip Design
• Positive Sentiment: Deepened partnership with NVIDIA to integrate Cadence’s AI design automation and simulation with NVIDIA’s AI infrastructure — supports agentic AI, digital twins and physical‑AI systems which can broaden Cadence’s TAM and drive tool adoption. Cadence And NVIDIA Deepen AI Partnership As Valuation Stays Demanding
• Positive Sentiment: Partnership with Google to optimize Cadence’s ChipStack AI Super‑Agent with Gemini on Google Cloud, reinforcing cloud and agentic‑AI distribution channels for Cadence tools. Alphabet Inc. (GOOGL)’s Google Partners with Cadence to Advance Chip Development
• Positive Sentiment: Analyst bullishness (Needham: “ChatGPT moment”) highlights growing optimism that agentic AI could materially accelerate Cadence’s revenue and margin expansion if adoption scales. The ‘ChatGPT moment’ for Cadence Design Systems might just have arrived, says Needham. Should you buy CDNS stock now?
• Neutral Sentiment: Q1 earnings preview: analysts expect solid AI‑driven demand and backlog but flag macro and competitive pressures — results/guidance will be the near‑term catalyst to confirm momentum. Cadence Design to Release Q1 Earnings: Here’s What to Expect
• Neutral Sentiment: Sector earnings activity (example: SS&C beat estimates) shows mixed results across software/tech names today — sector flows may be influencing Cadence’s share moves but are not company‑specific drivers. SS&C Technologies (SSNC) Tops Q1 Earnings and Revenue Estimates
• Negative Sentiment: Market coverage flagged that CDNS underperformed the broader market today; the stock decreased materially on the session — likely a reaction to profit‑taking and high street sensitivity to any growth/guidance misses. Cadence Design Systems (CDNS) Suffers a Larger Drop Than the General Market: Key Insights
• Negative Sentiment: Ongoing valuation concerns — coverage notes Cadence’s premium multiple makes the stock sensitive to near‑term execution and guidance; any slip in revenue cadence or slower tool adoption could pressure shares. Cadence And NVIDIA Deepen AI Partnership As Valuation Stays Demanding

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.