Cadence Design Systems (NASDAQ:CDNS) Upgraded by Benchmark to “Strong-Buy” Rating

Posted by Wayne Rhoads on Jul 17th, 2026

Cadence Design Systems (NASDAQ:CDNS – Get Free Report) was upgraded by research analysts at Benchmark to a “strong-buy” rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

Several other research analysts have also commented on CDNS. Wells Fargo & Company raised their price target on Cadence Design Systems from $400.00 to $425.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 26th. Citigroup increased their target price on Cadence Design Systems from $385.00 to $400.00 and gave the stock a “buy” rating in a research note on Wednesday, April 29th. KeyCorp raised their target price on Cadence Design Systems from $405.00 to $425.00 and gave the company an “overweight” rating in a report on Tuesday, April 28th. Needham & Company LLC reaffirmed a “buy” rating and issued a $400.00 target price on shares of Cadence Design Systems in a research report on Tuesday, April 28th. Finally, Rosenblatt Securities boosted their price target on shares of Cadence Design Systems from $375.00 to $410.00 and gave the stock a “buy” rating in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, Cadence Design Systems presently has an average rating of “Moderate Buy” and an average price target of $393.65.

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Cadence Design Systems Price Performance

Cadence Design Systems stock opened at $364.65 on Wednesday. The company’s 50 day simple moving average is $376.74 and its 200-day simple moving average is $328.56. The company has a market capitalization of $100.58 billion, a price-to-earnings ratio of 85.00, a price-to-earnings-growth ratio of 4.40 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. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.47.

Cadence Design Systems (NASDAQ:CDNS – Get Free Report) last posted its quarterly earnings data on Monday, April 27th. The software maker reported $1.96 earnings per share for the quarter, topping analysts’ consensus estimates of $1.91 by $0.05. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The firm had revenue of $1.47 billion during the quarter, compared to analysts’ expectations of $1.46 billion. During the same quarter last year, the company posted $1.57 EPS. The firm’s quarterly revenue was up 18.6% on a year-over-year basis. Cadence Design Systems has set its FY 2026 guidance at 7.850-7.950 EPS and its Q2 2026 guidance at 2.020-2.080 EPS. As a group, equities research analysts expect that Cadence Design Systems will post 6.23 earnings per share for the current year.

Insider Activity at Cadence Design Systems

In other news, CEO Anirudh Devgan sold 25,005 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $415.00, for a total transaction of $10,377,075.00. Following the completion of the transaction, the chief executive officer directly owned 253,519 shares of the company’s stock, valued at approximately $105,210,385. The trade was a 8.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita M. Brennan sold 180 shares of the company’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $387.45, for a total transaction of $69,741.00. Following the sale, the director owned 8,004 shares in the company, valued at $3,101,149.80. The trade was a 2.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 157,057 shares of company stock worth $60,272,277 over the last quarter. 0.49% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Regent Peak Wealth Advisors LLC increased its position in shares of 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 valued at $637,000 after purchasing an additional 42 shares during the last quarter. Tema ETFs LLC lifted its position in shares of Cadence Design Systems by 10.2% during the 2nd quarter. Tema ETFs LLC now owns 4,702 shares of the software maker’s stock worth $1,765,000 after purchasing an additional 435 shares during the last quarter. E. Ohman J or Asset Management AB grew its stake in shares of Cadence Design Systems by 3.7% during the second quarter. E. Ohman J or Asset Management AB now owns 12,576 shares of the software maker’s stock worth $4,720,000 after purchasing an additional 450 shares in the last quarter. Handelsbanken Fonder AB grew its stake in shares of Cadence Design Systems by 30.9% during the second quarter. Handelsbanken Fonder AB now owns 176,771 shares of the software maker’s stock worth $66,346,000 after purchasing an additional 41,693 shares in the last quarter. Finally, Bay Colony Advisory Group Inc d b a Bay Colony Advisors increased its holdings in Cadence Design Systems by 10.2% in the second 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 last quarter. Hedge funds and other institutional investors own 84.85% of the company’s stock.

Cadence Design Systems News Roundup

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

Positive Sentiment: Cadence announced a partnership with Rapidus to integrate its InnoStack AI Super Agent into Rapidus’ AI-Agentic Design Solution, expanding Cadence’s reach in advanced-node SoC design and reinforcing its AI design leadership. Rapidus and Cadence Partner on Agentic AI for Advanced SoC Design
Positive Sentiment: Cadence introduced AuraStack AI Super Agent for PCB and advanced packaging design, a new agentic AI platform that could deepen demand for its software across more stages of chip development. Cadence Introduces AuraStack AI Super Agent
Positive Sentiment: Multiple reports highlighted Cadence as a beneficiary of booming AI chip demand and the shortage of chip-design talent, which supports the investment case for its automation software. Chip design software dubbed a $3.7 billion opportunity
Neutral Sentiment: Market commentary says Cadence may be undervalued ahead of its July 27 earnings report, suggesting investors are waiting for confirmation that recent AI product momentum will translate into results. Cadence Design Systems (CDNS) Could Be 3% Undervalued Ahead Of July 27 Earnings
Neutral Sentiment: Cadence was also noted as a trending stock among Zacks users, reflecting elevated attention rather than a clear fundamental catalyst. Cadence Design Systems, Inc. (CDNS) Is a Trending Stock
Negative Sentiment: One market note said CDNS underperformed peers on Wednesday, which may be contributing to a cautious tone around the shares despite the upbeat AI narrative. Cadence Design Systems Inc. stock underperforms Wednesday when compared to competitors

Cadence Design Systems Company Profile

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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.