Cadence Design Systems (NASDAQ:CDNS) Stock Moved Up to “Buy” by Wall Street Zen

Wall Street Zen upgraded shares of Cadence Design Systems (NASDAQ:CDNS) from a hold rating to a buy rating in a report published on Wednesday,Wall Street Zen reports.

Other research analysts have also issued research reports about the company. FBN Securities initiated coverage on Cadence Design Systems in a report on Friday, September 11th. They set an “outperform” rating and a $375.00 price objective on the stock. The Goldman Sachs Group raised their target price on Cadence Design Systems from $410.00 to $470.00 and gave the company a “buy” rating in a report on Monday, July 13th. Rothschild & Co Redburn upped their price target on shares of Cadence Design Systems from $385.00 to $395.00 and gave the stock a “buy” rating in a research note on Tuesday, July 28th. Morgan Stanley reaffirmed an “overweight” rating and set a $400.00 price target (up from $370.00) on shares of Cadence Design Systems in a research note on Wednesday, July 29th. Finally, Robert W. Baird increased their price target on shares of Cadence Design Systems from $420.00 to $440.00 and gave the company an “outperform” rating in a report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $410.05.

Cadence Design Systems Stock Down 0.2%

CDNS stock opened at $342.46 on Wednesday. The company has a current ratio of 1.74, a quick ratio of 1.53 and a debt-to-equity ratio of 0.36. Cadence Design Systems has a twelve month low of $262.75 and a twelve month high of $416.69. The company’s 50 day moving average is $319.69 and its two-hundred day moving average is $327.18. The stock has a market cap of $94.31 billion, a P/E ratio of 68.08, a PEG ratio of 3.38 and a beta of 1.13.

Cadence Design Systems (NASDAQ:CDNS) last issued its earnings results on Monday, October 26th. The software maker reported $2.11 earnings per share for the quarter, beating the consensus estimate 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 business had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.61 billion. During the same quarter in the previous year, the firm earned $1.93 earnings per share. The business’s quarterly revenue was up 22.0% compared to the same quarter last year. Research analysts expect that Cadence Design Systems will post 6.42 earnings per share for the current fiscal year.

Insider Buying and Selling at Cadence Design Systems

In other Cadence Design Systems news, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of Cadence Design Systems stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $350.07, for a total transaction of $437,587.50. Following the completion of the transaction, the director owned 39,544 shares in the company, valued at approximately $13,843,168.08. The trade was a 3.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 2,000 shares of Cadence Design Systems stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $324.13, for a total transaction of $648,260.00. Following the transaction, the vice president owned 119,612 shares of the company’s stock, valued at approximately $38,769,837.56. The trade was a 1.64% decrease in their position. 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 8,960 shares of company stock valued at $2,834,139 over the last 90 days. 0.49% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of CDNS. Summit Global Investments lifted its stake in Cadence Design Systems by 57.6% in the third quarter. Summit Global Investments now owns 3,611 shares of the software maker’s stock valued at $1,192,000 after buying an additional 1,320 shares during the last quarter. MGO One Seven LLC grew its position in shares of Cadence Design Systems by 6.6% during the third quarter. MGO One Seven LLC now owns 20,489 shares of the software maker’s stock worth $6,765,000 after acquiring an additional 1,274 shares during the last quarter. State of Wyoming bought a new position in shares of Cadence Design Systems during the third quarter worth about $274,000. Petros Family Wealth LLC grew its position in shares of Cadence Design Systems by 21.2% during the third quarter. Petros Family Wealth LLC now owns 1,246 shares of the software maker’s stock worth $411,000 after acquiring an additional 218 shares during the last quarter. Finally, Arta Finance Wealth Management LLC increased its holdings in shares of Cadence Design Systems by 29.4% in the 3rd quarter. Arta Finance Wealth Management LLC now owns 2,004 shares of the software maker’s stock worth $662,000 after acquiring an additional 455 shares during the period. 84.85% of the stock is currently owned by institutional investors and hedge funds.

Cadence Design Systems News Summary

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

• Positive Sentiment: Q3 beat and raised outlook: Cadence reported adjusted earnings of $2.11 per share versus the $2.05 consensus, while revenue increased 22% year over year to $1.63 billion. Management raised its full-year 2026 revenue-growth outlook to 21%, supported by strong customer demand. Cadence Q3 Earnings Beat Estimates on AI Demand, Outlook Raised
• Positive Sentiment: AI momentum and backlog: Record backlog of approximately $8.2 billion, accelerating adoption of AI and agentic-design tools, and growth across electronic design automation, intellectual property and systems design are reinforcing expectations for sustained expansion. Cadence Design Systems: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: New AI product initiative: Cadence introduced its Maestro AI Model Portfolio to support AI “super agents” across semiconductor and system-design workflows, strengthening its positioning in the expanding AI-design software market. Cadence Introduces Maestro AI Model Portfolio
• Positive Sentiment: Analyst support increased: JPMorgan raised its target to $420 from $405 with an overweight rating, while Needham lifted its target to $430 and Baird to $440. Wall Street Zen also upgraded the stock, adding to the positive sentiment following the earnings release. Needham Raises Cadence Price Target
• Neutral Sentiment: Investor focus: Analysts view the earnings beat and raised guidance as occurring early in a potentially significant “agentic AI” opportunity, but investors will continue monitoring how quickly that opportunity converts into revenue and earnings.
• Negative Sentiment: Risk signals remain: Unusually heavy put-option purchases—about 145% above typical daily volume—suggest some investors are hedging or positioning for weakness. Cadence’s premium valuation and reported margin pressure could also encourage profit-taking despite the improved outlook.

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.