Cadence Design Systems, Inc. (NASDAQ:CDNS) Given Average Rating of “Moderate Buy” by Brokerages

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS) have been given a consensus recommendation of “Moderate Buy” by the seventeen research firms that are covering the firm, MarketBeat Ratings reports. Four research analysts have rated the stock with a hold rating and thirteen have issued a buy rating on the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $379.5882.

CDNS has been the subject of several research reports. Wells Fargo & Company upped their target price on shares of Cadence Design Systems from $405.00 to $410.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 28th. JPMorgan Chase & Co. upped their price objective on Cadence Design Systems from $390.00 to $405.00 and gave the stock an “overweight” rating in a report on Tuesday, October 28th. Needham & Company LLC reiterated a “buy” rating and set a $390.00 price objective on shares of Cadence Design Systems in a research report on Monday, December 22nd. Oppenheimer upgraded Cadence Design Systems from an “underperform” rating to a “market perform” rating and set a $275.00 target price for the company in a research report on Monday, December 1st. Finally, Citigroup started coverage on Cadence Design Systems in a research note on Monday, November 24th. They issued a “buy” rating and a $385.00 target price for the company.

Cadence Design Systems Trading Up 0.2%

Shares of CDNS opened at $299.65 on Thursday. The firm’s 50 day simple moving average is $313.41 and its 200 day simple moving average is $330.94. The company has a market capitalization of $81.56 billion, a P/E ratio of 77.23, a P/E/G ratio of 3.33 and a beta of 1.01. The company has a debt-to-equity ratio of 0.48, a current ratio of 3.05 and a quick ratio of 2.84. Cadence Design Systems has a 1-year low of $221.56 and a 1-year high of $376.45.

Insider Activity at Cadence Design Systems

In related news, CEO Anirudh Devgan sold 20,000 shares of Cadence Design Systems stock in a transaction on Friday, December 5th. The shares were sold at an average price of $340.00, for a total value of $6,800,000.00. Following the transaction, the chief executive officer owned 195,844 shares in the company, valued at $66,586,960. This trade represents a 9.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Paul Cunningham sold 1,000 shares of the firm’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $295.09, for a total value of $295,090.00. Following the transaction, the vice president directly owned 95,137 shares in the company, valued at $28,073,977.33. This trade represents a 1.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 56,475 shares of company stock worth $18,505,486 in the last 90 days. Corporate insiders own 1.99% of the company’s stock.

Institutional Investors Weigh In On Cadence Design Systems

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CDNS. Peterson Wealth Services boosted its holdings in Cadence Design Systems by 1,501.3% in the third quarter. Peterson Wealth Services now owns 187,115 shares of the software maker’s stock valued at $65,726,000 after purchasing an additional 175,430 shares during the last quarter. Pacer Advisors Inc. raised its position in Cadence Design Systems by 83.3% during the third quarter. Pacer Advisors Inc. now owns 182,348 shares of the software maker’s stock valued at $64,052,000 after acquiring an additional 82,856 shares in the last quarter. Stanley Laman Group Ltd. acquired a new position in shares of Cadence Design Systems in the 3rd quarter valued at $6,177,000. Patton Fund Management Inc. boosted its stake in shares of Cadence Design Systems by 1,743.7% during the 3rd quarter. Patton Fund Management Inc. now owns 13,994 shares of the software maker’s stock worth $4,916,000 after acquiring an additional 13,235 shares in the last quarter. Finally, Westerkirk Capital Inc. acquired a new position in Cadence Design Systems in the 2nd quarter worth about $2,024,000. 84.85% of the stock is currently owned by institutional investors.

Trending Headlines about Cadence Design Systems

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

• Positive Sentiment: Cadence unveiled “ChipStack AI Super Agent,” an agentic AI workflow aimed at accelerating silicon design with management claiming multi‑fold productivity gains — a clear revenue/positioning catalyst if customers adopt it. Cadence Unveils ChipStack AI Super Agent for Next-Gen Chips
• Positive Sentiment: Major outlets picked up the AI‑agent story (MSN, Seeking Alpha), amplifying investor awareness and helping drive short‑term momentum. Cadence introduces an AI agent to speed up computer chip design Cadence unveils AI agent to accelerate chip design
• Positive Sentiment: Market sentiment reports note increased bullishness this week (coverage highlights an ~8% weekly advance), suggesting investor appetite for Cadence’s AI narrative. Investors more bullish on Cadence Design Systems (NASDAQ:CDNS) this week as stock advances 8.4%
• Neutral Sentiment: Analysts and research outlets are digging into Q4 (Dec‑2025) metric-level estimates to assess upside vs. consensus; this deeper analysis could influence earnings expectations but is not itself a directional catalyst. Unlocking Q4 Potential of Cadence (CDNS): Exploring Wall Street Estimates for Key Metrics
• Neutral Sentiment: Cadence is due to report quarterly results next week — a clear near‑term catalyst that can swing the stock either way depending on revenue, margin, and guidance. Cadence Design Systems (CDNS) Expected to Announce Quarterly Earnings on Tuesday
• Neutral Sentiment: Recent short‑interest reports in the feed show zero shares/erroneous NaN increases (data appears unreliable) — no clear short squeeze signal from these entries.
• Negative Sentiment: A Zacks note warned Cadence “doesn’t possess the right combination” for a likely earnings beat in the upcoming report, implying risk of a disappointment that could reverse recent gains. Cadence Design Systems (CDNS) Reports Next Week: Wall Street Expects Earnings Growth

About Cadence Design Systems

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.