Cadence Design Systems’ (CDNS) Buy Rating Reiterated at Needham & Company LLC

Needham & Company LLC reiterated their buy rating on shares of Cadence Design Systems (NASDAQ:CDNS) in a research note released on Wednesday,Benzinga reports. The brokerage currently has a $390.00 target price on the software maker’s stock.

Other analysts have also recently issued research reports about the stock. Oppenheimer upgraded shares of Cadence Design Systems from an “underperform” rating to a “market perform” rating and set a $275.00 price target for the company in a research note on Monday, December 1st. Robert W. Baird upped their target price on shares of Cadence Design Systems from $390.00 to $418.00 and gave the company an “outperform” rating in a report on Tuesday, October 28th. JPMorgan Chase & Co. raised their price target on Cadence Design Systems from $390.00 to $405.00 and gave the stock an “overweight” rating in a report on Tuesday, October 28th. KeyCorp reaffirmed an “overweight” rating and set a $405.00 price objective on shares of Cadence Design Systems in a research report on Tuesday, October 28th. Finally, Citigroup initiated coverage on Cadence Design Systems in a report on Monday, November 24th. They issued a “buy” rating and a $385.00 target price on the stock. Fifteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $376.50.

Cadence Design Systems Stock Down 0.1%

CDNS stock opened at $296.28 on Wednesday. The stock has a market cap of $80.65 billion, a P/E ratio of 72.98, a PEG ratio of 3.37 and a beta of 1.01. The company has a current ratio of 2.86, a quick ratio of 2.84 and a debt-to-equity ratio of 0.45. Cadence Design Systems has a twelve month low of $221.56 and a twelve month high of $376.45. The company’s 50 day moving average is $307.90 and its two-hundred day moving average is $328.02.

Cadence Design Systems (NASDAQ:CDNS) last posted its earnings results on Tuesday, February 17th. The software maker reported $1.99 EPS for the quarter, beating analysts’ consensus estimates of $1.91 by $0.08. Cadence Design Systems had a net margin of 20.93% and a return on equity of 29.34%. The firm had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.42 billion. During the same period last year, the firm posted $1.88 EPS. The company’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. Research analysts expect that Cadence Design Systems will post 5.41 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Anirudh Devgan sold 20,000 shares of Cadence Design Systems stock in a transaction that occurred 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 directly owned 195,844 shares in the company, valued at approximately $66,586,960. This trade represents a 9.27% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Paul Cunningham sold 1,000 shares of the company’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $295.09, for a total value of $295,090.00. Following the completion of the sale, the vice president owned 95,137 shares in the company, valued at approximately $28,073,977.33. This represents a 1.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 56,475 shares of company stock valued at $18,505,486 in the last quarter. Insiders own 1.99% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in CDNS. Tiemann Investment Advisors LLC lifted its stake in Cadence Design Systems by 2.9% in the 2nd quarter. Tiemann Investment Advisors LLC now owns 1,050 shares of the software maker’s stock valued at $324,000 after buying an additional 30 shares in the last quarter. Occidental Asset Management LLC lifted its position in shares of Cadence Design Systems by 2.3% in the third quarter. Occidental Asset Management LLC now owns 1,321 shares of the software maker’s stock valued at $464,000 after acquiring an additional 30 shares in the last quarter. Whittier Trust Co. boosted its stake in shares of Cadence Design Systems by 0.4% during the third quarter. Whittier Trust Co. now owns 7,072 shares of the software maker’s stock valued at $2,456,000 after acquiring an additional 30 shares during the last quarter. Cornerstone Wealth Group LLC increased its position in Cadence Design Systems by 4.3% during the 3rd quarter. Cornerstone Wealth Group LLC now owns 777 shares of the software maker’s stock worth $273,000 after purchasing an additional 32 shares in the last quarter. Finally, Spirepoint Private Client LLC raised its stake in Cadence Design Systems by 4.6% in the 4th quarter. Spirepoint Private Client LLC now owns 722 shares of the software maker’s stock valued at $226,000 after purchasing an additional 32 shares during the last quarter. Institutional investors and hedge funds own 84.85% of the company’s stock.

More Cadence Design Systems News

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

• Positive Sentiment: Q4 beats, strong guidance and record backlog — Cadence topped Q4 revenue and EPS estimates, reported a record $7.8B backlog and gave upbeat 2026 guidance tied to AI-driven chip-design demand, supporting the post‑earnings rally. Cadence Tops Q4 Earnings on Upbeat AI Trends, Posts Solid Backlog
• Positive Sentiment: Market commentary highlights AI products (ChipStack, Cerebrus) that management says can materially boost chip-design productivity — a structural tailwind that investors are rewarding after the print.
• Positive Sentiment: Brokerage support — Bank of America reaffirmed a Buy with a $400 target (bullish price objective) and Rosenblatt/Needham issued Buy ratings, providing institutional endorsement of the AI story. Bank of America Securities Remains Bullish on Cadence Design Systems Rosenblatt Raised to Buy Needham Buy Rating
• Neutral Sentiment: ChipStack AI launch draws attention but raises valuation/implementation watchpoints — product launch is positive for long‑term thesis, though some coverage flags valuation risk. Cadence ChipStack AI Super Agent Launch Meets High Valuation Watchpoints
• Neutral Sentiment: International revenue exposure and technicals matter — analysts note international trends and the stock is testing its 50‑day moving average after the earnings move, important for near‑term momentum. Don’t Overlook Cadence (CDNS) International Revenue Trends Cadence Stock Is Challenging Its 50-Day Moving Average
• Neutral Sentiment: Short-interest entries in the feed show anomalous/zero values (likely a data glitch) — no clear short‑squeeze signal from the reported figures.
• Negative Sentiment: Some firms trimmed expectations — Morgan Stanley and Piper Sandler lowered forecasts/price expectations, which can cap upside if follow‑through downgrades occur. Piper Sandler Lowers Expectations Morgan Stanley Lowers Expectations
• Negative Sentiment: Unusual options activity — large volume of put purchases was reported, which can signal some trader hedging or bearish positioning ahead of further volatility. Stock Traders Buy Large Volume of Cadence Put Options

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.