Cadence Design Systems, Inc. (NASDAQ:CDNS) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS) have received an average recommendation of “Moderate Buy” from the seventeen research firms that are presently covering the firm, MarketBeat reports. Three research analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $403.88.

Several equities research analysts have recently issued reports on the stock. Piper Sandler increased their target price on shares of Cadence Design Systems from $325.00 to $349.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 28th. Morgan Stanley restated an “overweight” rating and issued a $400.00 price target on shares of Cadence Design Systems in a research note on Wednesday, July 29th. Citigroup increased their price target 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. FBN Securities began coverage on Cadence Design Systems in a report on Friday, September 11th. They issued an “outperform” rating and a $375.00 price objective on the stock. Finally, Needham & Company LLC restated a “buy” rating and issued a $400.00 price objective on shares of Cadence Design Systems in a research report on Tuesday, July 28th.

Insider Activity at Cadence Design Systems

In other Cadence Design Systems news, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $320.88, for a total transaction of $401,100.00. Following the transaction, the director directly owned 40,794 shares of the company’s stock, valued at $13,089,978.72. This trade represents a 2.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 280 shares of Cadence Design Systems stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $339.00, for a total transaction of $94,920.00. Following the completion of the sale, the vice president owned 31,720 shares in the company, valued at approximately $10,753,080. This trade represents a 0.88% 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 5,710 shares of company stock worth $1,748,292 over the last 90 days. 0.49% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. QRG Capital Management Inc. boosted its holdings in Cadence Design Systems by 38.7% in the 2nd quarter. QRG Capital Management Inc. now owns 93,049 shares of the software maker’s stock worth $34,923,000 after buying an additional 25,944 shares during the last quarter. Envestnet Portfolio Solutions Inc. raised its holdings in shares of Cadence Design Systems by 74.8% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 21,069 shares of the software maker’s stock valued at $7,908,000 after acquiring an additional 9,016 shares during the last quarter. Anchor Investment Management LLC lifted its position in shares of Cadence Design Systems by 117.2% in the second quarter. Anchor Investment Management LLC now owns 291 shares of the software maker’s stock valued at $109,000 after acquiring an additional 157 shares in the last quarter. Sequoia Financial Advisors LLC lifted its position in shares of Cadence Design Systems by 58.2% in the second quarter. Sequoia Financial Advisors LLC now owns 16,776 shares of the software maker’s stock valued at $6,296,000 after acquiring an additional 6,169 shares in the last quarter. Finally, IPG Investment Advisors LLC acquired a new stake in shares of Cadence Design Systems in the second quarter worth approximately $1,902,000. 84.85% of the stock is owned by hedge funds and other institutional investors.

Cadence Design Systems News Roundup

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

• Positive Sentiment: Expanded TSMC partnership supports growth prospects: Cadence announced certified tools for Taiwan Semiconductor Manufacturing’s advanced A14 process, along with UALink and silicon-proven intellectual property for TSMC’s N3P and N2P technologies. The collaboration targets AI, high-performance computing, agentic-AI chip design and 3D-IC workflows, strengthening Cadence’s position in next-generation chip development. Cadence Collaborates With TSMC to Deliver Certified Tool Solutions
• Positive Sentiment: AI design-agent momentum is attracting investor interest: Cadence’s new RTL Generation Agent and ChipStack AI Super Agent are designed to automate chip design and optimization. Early evaluations cited by Zacks indicated 24% lower area and 18% lower power, while Cadence has highlighted customer validation and expected fourth-quarter availability. Cadence’s New RTL Generation Agent Could Reshape AI-Driven Chip Design
• Positive Sentiment: Fundamental visibility remains supportive: Cadence previously reported record backlog of approximately $8.1 billion and raised its full-year 2026 outlook. Strong demand from semiconductor companies, hyperscalers and custom-silicon customers reinforces the view that AI infrastructure spending can support future revenue.
• Neutral Sentiment: Options-market activity is drawing attention, but the available report does not identify a definitive bullish or bearish positioning signal. Reported short-interest data showing zero shares also appears potentially incomplete or anomalous, limiting its usefulness.
• Negative Sentiment: Insider-trading data shows executives have recorded multiple open-market sales and no purchases during the past six months. These transactions may reflect compensation or diversification, but they could temper bullish sentiment, particularly given CDNS’s elevated valuation.

Cadence Design Systems Price Performance

Shares of NASDAQ CDNS opened at $322.00 on Friday. The stock has a market capitalization of $88.68 billion, a price-to-earnings ratio of 64.02, a PEG ratio of 3.25 and a beta of 1.14. Cadence Design Systems has a 12 month low of $262.75 and a 12 month high of $416.69. The firm’s 50 day simple moving average is $317.72 and its 200-day simple moving average is $333.37. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.53.

Cadence Design Systems (NASDAQ:CDNS) last posted its earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.06. The firm had revenue of $1.58 billion during the quarter, compared to analysts’ expectations of $1.58 billion. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The business’s revenue was up 24.2% compared to the same quarter last year. During the same period in the previous year, the business posted $1.65 EPS. 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 expect that Cadence Design Systems will post 6.4 EPS for the current year.

About Cadence Design Systems

Cadence Design Systems, Inc is a technology company that develops electronic design automation (EDA) software, hardware and semiconductor intellectual property (IP). Its products help engineers design, verify and analyze integrated circuits, printed circuit boards and complete electronic systems.

The company offers solutions spanning digital and custom IC design, functional verification, digital and analog simulation, emulation and prototyping, system analysis, and 3D computational fluid dynamics.