JPMorgan Chase & Co. Issues Positive Forecast for Cadence Design Systems (NASDAQ:CDNS) Stock Price

Cadence Design Systems (NASDAQ:CDNS) had its target price increased by research analysts at JPMorgan Chase & Co. from $405.00 to $420.00 in a note issued to investors on Tuesday, Benzinga reports. The firm presently has an “overweight” rating on the software maker’s stock. JPMorgan Chase & Co.‘s price objective points to a potential upside of 21.50% from the company’s previous close.

A number of other research firms have also recently commented on CDNS. Morgan Stanley reiterated an “overweight” rating and issued a $400.00 price target (up from $370.00) on shares of Cadence Design Systems in a research note on Wednesday, July 29th. KeyCorp reaffirmed an “overweight” rating on shares of Cadence Design Systems in a research report on Tuesday. Citigroup lifted their target price on shares of Cadence Design Systems from $400.00 to $420.00 and gave the stock a “buy” rating in a research note on Tuesday, July 28th. Rothschild & Co Redburn boosted their target price on shares of Cadence Design Systems from $385.00 to $395.00 and gave the stock a “buy” rating in a research report on Tuesday, July 28th. Finally, Wall Street Zen lowered shares of Cadence Design Systems from a “buy” rating to a “hold” rating in a research note on Tuesday, October 20th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, Cadence Design Systems currently has an average rating of “Moderate Buy” and an average target price of $406.78.

Cadence Design Systems Stock Up 7.3%

NASDAQ CDNS traded up $23.52 on Tuesday, hitting $345.69. The stock had a trading volume of 3,218,053 shares, compared to its average volume of 2,455,066. The business’s fifty day moving average price is $318.83 and its 200 day moving average price is $326.92. 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 has a 52-week low of $262.75 and a 52-week high of $416.69. The stock has a market cap of $95.20 billion, a price-to-earnings ratio of 68.49, a price-to-earnings-growth ratio of 3.38 and a beta of 1.13.

Cadence Design Systems (NASDAQ:CDNS) last issued its quarterly earnings data on Monday, October 26th. The software maker reported $2.11 EPS for the quarter, beating the consensus estimate of $2.05 by $0.06. The firm had revenue of $1.63 billion during the quarter, compared to analyst estimates of $1.61 billion. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%. The business’s revenue for the quarter was up 22.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.93 EPS. Equities research analysts anticipate that Cadence Design Systems will post 6.42 earnings per share for the current year.

Insider Buying and Selling

In related news, VP Paul Cunningham sold 2,000 shares of the business’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $277.12, for a total value of $554,240.00. Following the completion of the transaction, the vice president directly owned 121,793 shares in the company, valued at $33,751,276.16. The trade was a 1.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 280 shares of the stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $339.00, for a total transaction of $94,920.00. Following the sale, the vice president directly owned 31,720 shares in the company, valued at $10,753,080. This trade represents a 0.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 8,960 shares of company stock worth $2,834,139. Corporate insiders own 0.49% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in CDNS. Van ECK Associates Corp lifted its holdings in shares of Cadence Design Systems by 21.8% in the 2nd quarter. Van ECK Associates Corp now owns 4,889,765 shares of the software maker’s stock valued at $1,835,227,000 after buying an additional 874,392 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Cadence Design Systems by 1.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,385,655 shares of the software maker’s stock worth $1,270,704,000 after acquiring an additional 48,937 shares during the period. Assenagon Asset Management S.A. raised its position in Cadence Design Systems by 1,097.5% in the third quarter. Assenagon Asset Management S.A. now owns 2,818,141 shares of the software maker’s stock worth $930,522,000 after acquiring an additional 2,582,812 shares in the last quarter. Legal & General Group Plc purchased a new position in Cadence Design Systems in the second quarter worth $702,615,000. Finally, Jupiter Topco LLC acquired a new stake in Cadence Design Systems in the second quarter valued at $688,746,000. 84.85% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Cadence Design Systems

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

• Positive Sentiment: Cadence reported third-quarter revenue of $1.63 billion, up 22% year over year and above the $1.61 billion consensus estimate. Adjusted earnings of $2.11 per share also exceeded expectations of approximately $2.05, supporting the stock’s upward move. Cadence Q3 Earnings Beat Estimates on AI Demand, Outlook Raised
• Positive Sentiment: Management raised its full-year 2026 outlook, with revenue growth guidance lifted to about 21%. Record backlog of approximately $8.2 billion indicates strong forward demand from semiconductor and systems customers. Cadence increases full-year fiscal 2026 guidance
• Positive Sentiment: Analysts highlighted the early-stage opportunity in “agentic AI” and accelerating AI adoption across chip-design workflows. Cadence also introduced its Maestro AI model portfolio for AI super agents, reinforcing its positioning in the semiconductor AI infrastructure cycle. Cadence introduces Maestro AI model portfolio
• Positive Sentiment: JPMorgan raised its price target to $420 from $405, while Needham lifted its target to $430 and Baird to $440; the firms maintained constructive ratings. JPMorgan raises Cadence price target
• Neutral Sentiment: Cadence expanded its share-repurchase authorization by $2.5 billion, which could provide longer-term support for per-share results but does not immediately change operating performance. Cadence expands share repurchase authorization
• Negative Sentiment: Investors should monitor valuation and execution risks: the stock trades at a high earnings multiple, while commentary indicated some margin pressure. Unusually elevated put-option activity also signals increased near-term hedging or bearish speculation.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc develops computational software, hardware, and semiconductor intellectual property used to design and verify electronic systems and integrated circuits. Its electronic design automation (EDA) solutions support chip development across areas such as digital and custom IC design, functional verification, emulation, prototyping, and system analysis.

The company also provides semiconductor IP, including processor cores, interconnect technologies, memory interfaces, and other building blocks that help customers develop complex chips.