Cadence Design Systems (NASDAQ:CDNS) Price Target Raised to $420.00

Cadence Design Systems (NASDAQ:CDNS) had its target price upped by Bank of America from $400.00 to $420.00 in a research note issued to investors on Tuesday morning,Benzinga reports. The brokerage currently has a buy rating on the software maker’s stock.

Several other research analysts have also recently issued reports on the stock. Rosenblatt Securities lifted their target price on shares of Cadence Design Systems from $410.00 to $420.00 and gave the stock a “buy” rating in a report on Tuesday. Stifel Nicolaus increased their price target on shares of Cadence Design Systems from $395.00 to $432.00 and gave the company a “buy” rating in a report on Tuesday, June 9th. Citigroup raised their price target on shares of Cadence Design Systems from $400.00 to $420.00 and gave the company a “buy” rating in a research report on Tuesday. Benchmark restated a “buy” rating on shares of Cadence Design Systems in a report on Tuesday. Finally, Oppenheimer reaffirmed a “market perform” rating and issued a $300.00 price objective on shares of Cadence Design Systems in a research report on Tuesday. Thirteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $405.69.

Cadence Design Systems Price Performance

Shares of NASDAQ:CDNS opened at $332.82 on Tuesday. The business has a fifty day moving average price of $373.04 and a 200-day moving average price of $329.95. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.32. The company has a market capitalization of $91.80 billion, a PE ratio of 66.17, a PEG ratio of 3.79 and a beta of 1.15. 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 announced its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.05 by $0.06. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The company had revenue of $1.58 billion for the quarter, compared to analysts’ expectations of $1.58 billion. During the same quarter in the previous year, the business posted $1.65 EPS. Cadence Design Systems’s revenue was up 24.2% compared to the same quarter last year. 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, equities analysts expect that Cadence Design Systems will post 6.39 EPS for the current fiscal year.

Insider Buying and Selling at Cadence Design Systems

In other news, VP Paul Cunningham sold 2,000 shares of Cadence Design Systems stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $391.00, for a total value of $782,000.00. Following the completion of the sale, the vice president directly owned 126,586 shares in the company, valued at $49,495,126. The trade was a 1.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 7,081 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $393.91, for a total transaction of $2,789,276.71. Following the transaction, the vice president directly owned 32,181 shares of the company’s stock, valued at $12,676,417.71. The trade was a 18.04% decrease in their ownership of the stock. 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. In the last ninety days, insiders have sold 145,557 shares of company stock worth $56,375,287. 0.49% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cadence Design Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Regent Peak Wealth Advisors LLC grew its position in Cadence Design Systems by 2.5% in the 2nd quarter. Regent Peak Wealth Advisors LLC now owns 1,697 shares of the software maker’s stock worth $637,000 after purchasing an additional 42 shares during the period. Tema ETFs LLC raised its stake in Cadence Design Systems by 10.2% during the 2nd quarter. Tema ETFs LLC now owns 4,702 shares of the software maker’s stock valued at $1,765,000 after buying an additional 435 shares during the last quarter. E. Ohman J or Asset Management AB raised its stake in Cadence Design Systems by 3.7% during the 2nd quarter. E. Ohman J or Asset Management AB now owns 12,576 shares of the software maker’s stock valued at $4,720,000 after buying an additional 450 shares during the last quarter. Handelsbanken Fonder AB lifted its holdings in shares of Cadence Design Systems by 30.9% during the 2nd quarter. Handelsbanken Fonder AB now owns 176,771 shares of the software maker’s stock valued at $66,346,000 after buying an additional 41,693 shares during the period. Finally, Bay Colony Advisory Group Inc d b a Bay Colony Advisors lifted its holdings in shares of Cadence Design Systems by 10.2% during the 2nd quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors now owns 1,287 shares of the software maker’s stock valued at $483,000 after buying an additional 119 shares during the period. Hedge funds and other institutional investors 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: Cadence exceeded second-quarter 2026 earnings expectations, reporting $2.11 in adjusted EPS versus the $2.05 consensus estimate. Revenue increased 24.2% year over year to $1.58 billion, supported by demand for AI and advanced-chip design tools. Cadence Q2 Earnings Top Estimates on AI Demand, Backlog Hits $8.1B
• Positive Sentiment: Record backlog of approximately $8.1 billion provides visibility into future sales and was cited by analysts as evidence that agentic AI and broader semiconductor investment can extend Cadence’s growth. Cadence rises after Q2 beat as analysts highlight record backlog
• Positive Sentiment: Management raised its full-year 2026 outlook to $8.05–$8.15 in EPS and issued third-quarter guidance of $2.01–$2.07, reinforcing confidence in continued demand.
• Positive Sentiment: Several Wall Street firms remain constructive: Needham reiterated a Buy rating, while Rosenblatt raised its price target to $420. Baird, Bank of America and Piper Sandler analysts also anticipate further appreciation. Rosenblatt raises Cadence price target
• Neutral Sentiment: The earnings call and related research suggest growth is broadening beyond AI, potentially supporting another earnings-driven advance if Cadence converts its backlog into revenue. Cadence earnings call signals AI-driven surge
• Negative Sentiment: At roughly 54 times earnings, CDNS remains expensive, and some commentary warns that the share price already discounts years of strong execution. This rich valuation could limit upside or amplify pressure if growth slows. Cadence keeps winning, but the share price is years ahead

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.