Cadence Design Systems (NASDAQ:CDNS) Rating Increased to Strong-Buy at Benchmark

Posted by Michael Walen on Jul 17th, 2026

Benchmark upgraded shares of Cadence Design Systems (NASDAQ:CDNS – Free Report) to a strong-buy rating in a research report released on Wednesday,Zacks.com reports.

A number of other research analysts also recently commented on CDNS. Weiss Ratings reissued a “hold (c)” rating on shares of Cadence Design Systems in a research report on Thursday, July 2nd. Rosenblatt Securities upped their price target on shares of Cadence Design Systems from $375.00 to $410.00 and gave the stock a “buy” rating in a research report on Tuesday. Wells Fargo & Company increased their price objective on shares of Cadence Design Systems from $400.00 to $425.00 and gave the company an “overweight” rating in a research note on Tuesday, May 26th. Stifel Nicolaus lifted their price objective on shares of Cadence Design Systems from $395.00 to $432.00 and gave the company a “buy” rating in a report on Tuesday, June 9th. Finally, Needham & Company LLC reissued a “buy” rating and issued a $400.00 price objective on shares of Cadence Design Systems in a research note on Tuesday, April 28th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $393.65.

View Our Latest Stock Report on Cadence Design Systems

Cadence Design Systems Price Performance

Shares of CDNS stock opened at $364.65 on Wednesday. Cadence Design Systems has a twelve month low of $262.75 and a twelve month high of $416.69. The stock has a market capitalization of $100.58 billion, a price-to-earnings ratio of 85.00, a P/E/G ratio of 4.40 and a beta of 1.15. The stock has a fifty day simple moving average of $376.74 and a two-hundred day simple moving average of $328.56. The company has a current ratio of 1.47, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38.

Cadence Design Systems (NASDAQ:CDNS – Get Free Report) last posted its quarterly earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.91 by $0.05. The business had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.46 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The business’s revenue was up 18.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.57 EPS. Cadence Design Systems has set its FY 2026 guidance at 7.850-7.950 EPS and its Q2 2026 guidance at 2.020-2.080 EPS. On average, analysts predict that Cadence Design Systems will post 6.23 EPS for the current fiscal year.

Insiders Place Their Bets

In other Cadence Design Systems news, VP Paul Scannell sold 10,500 shares of the stock in a transaction dated 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 sale, the vice president directly owned 33,946 shares of the company’s stock, valued at approximately $11,507,694. This represents a 23.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 2,000 shares of the stock in a transaction dated 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 of the company’s stock, valued at approximately $49,495,126. The trade was a 1.56% 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 sold a total of 157,057 shares of company stock valued at $60,272,277 in the last three months. 0.49% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Cadence Design Systems

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Pinnacle Wealth Management Advisory Group LLC increased its position in shares of Cadence Design Systems by 3.1% during the first quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,033 shares of the software maker’s stock worth $287,000 after purchasing an additional 31 shares in the last quarter. Westfuller Advisors LLC boosted its position in shares of Cadence Design Systems by 8.2% in the 1st quarter. Westfuller Advisors LLC now owns 408 shares of the software maker’s stock worth $113,000 after purchasing an additional 31 shares in the last quarter. Spirepoint Private Client LLC boosted its position in shares of Cadence Design Systems by 4.6% in the 4th quarter. Spirepoint Private Client LLC now owns 722 shares of the software maker’s stock worth $226,000 after purchasing an additional 32 shares in the last quarter. Cornerstone Planning Group LLC boosted its position in shares of Cadence Design Systems by 32.0% in the 1st quarter. Cornerstone Planning Group LLC now owns 132 shares of the software maker’s stock worth $37,000 after purchasing an additional 32 shares in the last quarter. Finally, KCM Investment Advisors LLC grew its stake in Cadence Design Systems by 0.4% during the 1st quarter. KCM Investment Advisors LLC now owns 8,013 shares of the software maker’s stock worth $2,227,000 after buying an additional 32 shares during the last quarter. Hedge funds and other institutional investors own 84.85% of the company’s stock.

Key Headlines Impacting Cadence Design Systems

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

Positive Sentiment: Cadence announced a partnership with Rapidus to integrate its InnoStack AI Super Agent into Rapidus’ AI-Agentic Design Solution, expanding Cadence’s reach in advanced-node SoC design and reinforcing its AI design leadership. Rapidus and Cadence Partner on Agentic AI for Advanced SoC Design
Positive Sentiment: Cadence introduced AuraStack AI Super Agent for PCB and advanced packaging design, a new agentic AI platform that could deepen demand for its software across more stages of chip development. Cadence Introduces AuraStack AI Super Agent
Positive Sentiment: Multiple reports highlighted Cadence as a beneficiary of booming AI chip demand and the shortage of chip-design talent, which supports the investment case for its automation software. Chip design software dubbed a $3.7 billion opportunity
Neutral Sentiment: Market commentary says Cadence may be undervalued ahead of its July 27 earnings report, suggesting investors are waiting for confirmation that recent AI product momentum will translate into results. Cadence Design Systems (CDNS) Could Be 3% Undervalued Ahead Of July 27 Earnings
Neutral Sentiment: Cadence was also noted as a trending stock among Zacks users, reflecting elevated attention rather than a clear fundamental catalyst. Cadence Design Systems, Inc. (CDNS) Is a Trending Stock
Negative Sentiment: One market note said CDNS underperformed peers on Wednesday, which may be contributing to a cautious tone around the shares despite the upbeat AI narrative. Cadence Design Systems Inc. stock underperforms Wednesday when compared to competitors

About Cadence Design Systems

(Get Free Report)

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.