Cadence Design Systems (NASDAQ:CDNS) Stock Rating Upgraded by Rosenblatt Securities

Cadence Design Systems (NASDAQ:CDNS) was upgraded by equities research analysts at Rosenblatt Securities from a “neutral” rating to a “buy” rating in a research note issued to investors on Wednesday, Marketbeat.com reports. The brokerage presently has a $360.00 price objective on the software maker’s stock, up from their prior price objective of $335.00. Rosenblatt Securities’ target price would indicate a potential upside of 27.00% from the company’s previous close.

A number of other research analysts have also weighed in on CDNS. Needham & Company LLC reiterated a “buy” rating and issued a $390.00 price target on shares of Cadence Design Systems in a report on Monday, December 22nd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Cadence Design Systems in a research note on Monday, December 29th. Citigroup assumed coverage on Cadence Design Systems in a research note on Monday, November 24th. They issued a “buy” rating and a $385.00 price target on the stock. 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 research report on Tuesday, October 28th. Finally, Wolfe Research reiterated an “outperform” rating and set a $385.00 price objective on shares of Cadence Design Systems in a report on Tuesday, October 28th. Fifteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $376.50.

Cadence Design Systems Stock Down 5.3%

Cadence Design Systems stock opened at $283.46 on Wednesday. The company’s 50 day simple moving average is $309.88 and its 200 day simple moving average is $328.89. The firm has a market capitalization of $77.16 billion, a price-to-earnings ratio of 73.06, a PEG ratio of 3.33 and a beta of 1.01. Cadence Design Systems has a fifty-two week low of $221.56 and a fifty-two week high of $376.45. 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 (NASDAQ:CDNS) last announced its quarterly earnings results on Tuesday, February 17th. The software maker reported $1.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.91 by $0.08. Cadence Design Systems had a net margin of 20.35% and a return on equity of 30.13%. The company had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.42 billion. During the same quarter in the previous year, the business earned $1.88 EPS. The firm’s revenue was up 6.2% on a year-over-year basis. 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. As a group, sell-side analysts anticipate that Cadence Design Systems will post 5.41 EPS for the current year.

Insiders Place Their Bets

In related news, CFO John M. Wall sold 27,805 shares of the business’s stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $318.57, for a total transaction of $8,857,838.85. Following the transaction, the chief financial officer directly owned 69,957 shares in the company, valued at approximately $22,286,201.49. The trade was a 28.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Anirudh Devgan sold 20,000 shares of the stock in a transaction on Friday, December 5th. The shares were sold at an average price of $340.00, for a total transaction of $6,800,000.00. Following the completion of the sale, the chief executive officer owned 195,844 shares of the company’s stock, valued at approximately $66,586,960. This represents a 9.27% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 56,475 shares of company stock valued at $18,505,486 in the last ninety days. 0.37% of the stock is currently owned by insiders.

Institutional Trading of Cadence Design Systems

Several institutional investors and hedge funds have recently bought and sold shares of the business. Y.D. More Investments Ltd acquired a new position in shares of Cadence Design Systems during the 3rd quarter worth approximately $26,000. University of Texas Texas AM Investment Management Co. acquired a new position in shares of Cadence Design Systems in the fourth quarter valued at $28,000. Caitlin John LLC bought a new position in shares of Cadence Design Systems in the third quarter valued at about $29,000. Swiss RE Ltd. acquired a new stake in shares of Cadence Design Systems during the 4th quarter worth about $29,000. Finally, Lodestone Wealth Management LLC acquired a new stake in shares of Cadence Design Systems during the 4th quarter worth about $30,000. 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: Q4 beat — Cadence reported Q4 EPS of $1.99 and revenue of $1.44B, topping consensus and showing y/y revenue growth (~6.2%), which validates steady demand. Cadence Reports Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Very strong FY26 guide — management raised FY‑2026 EPS to $8.05–8.15 (well above Street expectations) and set revenue guidance roughly $5.9–6.0B, signaling confidence in multi‑year demand drivers. Cadence Reports Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: AI‑linked demand highlighted — management and several reports point to strong AI-related design demand as a growth driver underpinning the beat and the raised guidance. Cadence beats quarterly profit and revenue estimates on strong AI-linked demand
• Neutral Sentiment: Call transcript and details available — the earnings call provides management commentary on product demand, backlog and cadence of revenue recognition; read the transcript for execution risks and cadence on AI bookings. Cadence Design Systems, Inc. (CDNS) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst views mixed but generally constructive — several buy/overweight ratings and price targets remain above current levels (median targets near $390), while a few firms remain cautious; analyst re‑ratings can amplify intraday moves. Analysts Set Cadence Design Systems, Inc. (NASDAQ:CDNS) PT at $379.59
• Negative Sentiment: Insider selling and institutional repositioning noted — recent reporting shows material insider sales and large institutional shifts that can create selling pressure even after a beat. Cadence Design Systems (CDNS) stock rises on Q4 2025 Earnings
• Negative Sentiment: Valuation and technicals may prompt profit‑taking — Cadence trades at a rich P/E (~73) and has recently been below its 50‑day and 200‑day moving averages, factors that can trigger rotation out of the name despite strong fundamentals.

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.