Robert W. Baird Issues Positive Forecast for Cadence Design Systems (NASDAQ:CDNS) Stock Price

Cadence Design Systems (NASDAQ:CDNS) had its price target boosted by analysts at Robert W. Baird from $415.00 to $420.00 in a research note issued on Tuesday,Benzinga reports. The firm presently has an “outperform” rating on the software maker’s stock. Robert W. Baird’s target price would suggest a potential upside of 24.04% from the stock’s previous close.

Several other brokerages have also recently commented on CDNS. Citigroup reiterated a “buy” rating on shares of Cadence Design Systems in a research note on Tuesday. Rosenblatt Securities increased their target price on shares of Cadence Design Systems from $375.00 to $410.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Piper Sandler lifted their price target on shares of Cadence Design Systems from $319.00 to $325.00 and gave the company a “neutral” rating in a research report on Tuesday, April 28th. KeyCorp boosted their price target on Cadence Design Systems from $405.00 to $425.00 and gave the stock an “overweight” rating in a research note on Tuesday, April 28th. Finally, Berenberg Bank set a $440.00 price objective on Cadence Design Systems in a research note on Wednesday, May 27th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $397.12.

Cadence Design Systems Trading Up 3.8%

Shares of CDNS stock opened at $338.61 on Tuesday. The business’s fifty day moving average price is $373.77 and its 200 day moving average price is $329.63. The firm has a market capitalization of $93.40 billion, a PE ratio of 78.93, a P/E/G ratio of 3.86 and a beta of 1.15. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.47 and a quick ratio of 1.32. Cadence Design Systems has a 1-year low of $262.75 and a 1-year high of $416.69.

Cadence Design Systems (NASDAQ:CDNS) last released its earnings results on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, beating analysts’ consensus estimates of $2.05 by $0.06. The company had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.58 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.Cadence Design Systems’s quarterly revenue was up 24.2% compared to the same quarter last year. During the same quarter last year, the company earned $1.65 earnings per share. 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. As a group, sell-side analysts forecast that Cadence Design Systems will post 6.23 EPS for the current fiscal year.

Insider Activity

In related news, VP Paul Scannell sold 10,500 shares of the company’s stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $339.00, for a total value of $3,559,500.00. Following the sale, the vice president owned 33,946 shares of the company’s stock, valued at approximately $11,507,694. This represents a 23.62% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anirudh Devgan sold 51,887 shares of the stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $370.00, for a total value of $19,198,190.00. Following the sale, the chief executive officer owned 303,525 shares in the company, valued at approximately $112,304,250. This trade represents a 14.60% 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. Over the last three months, insiders sold 157,057 shares of company stock worth $60,272,277. 0.49% of the stock is owned by corporate insiders.

Institutional Trading of Cadence Design Systems

Large investors have recently made changes to their positions in the stock. University of Texas Texas AM Investment Management Co. acquired a new position in Cadence Design Systems in the 4th quarter valued at about $28,000. Arlington Trust Co LLC boosted its stake in shares of Cadence Design Systems by 154.3% during the 2nd quarter. Arlington Trust Co LLC now owns 89 shares of the software maker’s stock worth $33,000 after purchasing an additional 54 shares during the last quarter. Imprint Wealth LLC purchased a new stake in shares of Cadence Design Systems during the third quarter worth about $31,000. Whipplewood Advisors LLC grew its holdings in shares of Cadence Design Systems by 933.3% during the first quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker’s stock worth $26,000 after buying an additional 84 shares in the last quarter. Finally, Swiss RE Ltd. acquired a new position in shares of Cadence Design Systems in the fourth quarter valued at approximately $29,000. Institutional investors and hedge funds 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: Q2 earnings beat expectations: Cadence reported adjusted earnings of $2.11 per share, above the $2.05 consensus estimate. Revenue reached $1.58 billion, in line with expectations but up 24.2% year over year. Cadence Design Systems Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Raised full-year guidance: Management projected 2026 earnings of $8.05-$8.15 per share and revenue of approximately $6.3 billion, modestly above prior expectations. Third-quarter EPS guidance of $2.01-$2.07 also exceeded the $1.84 analyst consensus. Cadence raises annual forecasts as demand booms for AI chip design
• Positive Sentiment: AI-driven demand remains strong: Cadence cited robust customer spending on AI-powered chip and system design software. Reports highlighted a record $8.1 billion backlog and expanding partnerships around agentic AI, supporting expectations for roughly 19% revenue growth in 2026. Cadence signals 19 percent 2026 revenue growth
• Neutral Sentiment: Valuation remains demanding: With CDNS trading at a high earnings multiple and above its 200-day moving average, continued share-price gains may depend on the company sustaining elevated growth and converting its backlog into revenue.

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.