Cadence Design Systems (NASDAQ:CDNS) Given Buy Rating at Rosenblatt Securities

Cadence Design Systems (NASDAQ:CDNS)‘s stock had its “buy” rating reissued by analysts at Rosenblatt Securities in a research report issued on Friday, Benzinga reports. They currently have a $420.00 price objective on the software maker’s stock. Rosenblatt Securities‘s price objective would suggest a potential upside of 22.04% from the stock’s current price.

CDNS has been the topic of a number of other research reports. KeyCorp reissued an “overweight” rating on shares of Cadence Design Systems in a report on Tuesday, July 28th. The Goldman Sachs Group raised their price objective on shares of Cadence Design Systems from $410.00 to $470.00 and gave the stock a “buy” rating in a report on Monday, July 13th. Citigroup raised their price objective on shares of Cadence Design Systems from $400.00 to $420.00 and gave the stock a “buy” rating in a report on Tuesday, July 28th. Piper Sandler lifted their price objective on shares of Cadence Design Systems from $325.00 to $349.00 and gave the company a “neutral” rating in a research report on Tuesday, July 28th. Finally, Robert W. Baird lifted their price objective on shares of Cadence Design Systems from $415.00 to $420.00 and gave the company an “outperform” rating in a research report on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $410.05.

Cadence Design Systems Trading Up 0.3%

NASDAQ:CDNS traded up $1.08 on Friday, reaching $344.16. 538,719 shares of the stock traded hands, compared to its average volume of 2,452,521. The company has a market capitalization of $94.78 billion, a price-to-earnings ratio of 68.57 and a beta of 1.13. Cadence Design Systems has a 12 month low of $262.75 and a 12 month high of $416.69. The company’s fifty day simple moving average is $319.17 and its 200 day simple moving average is $327.07.

Cadence Design Systems (NASDAQ:CDNS) last released its quarterly earnings data on Monday, October 26th. The software maker reported $2.11 earnings per share for the quarter, beating analysts’ consensus estimates of $2.05 by $0.06. The firm had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.61 billion. The firm’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 earnings per share. Equities analysts anticipate that Cadence Design Systems will post 6.42 EPS for the current fiscal year.

Insider Activity at Cadence Design Systems

In other news, VP Paul Cunningham sold 2,000 shares of the company’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $277.12, for a total transaction of $554,240.00. Following the transaction, the vice president owned 121,793 shares in the company, valued at $33,751,276.16. This represents a 1.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the stock in a transaction that occurred on Thursday, October 1st. The stock was 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. This trade represents a 3.06% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 8,960 shares of company stock worth $2,834,139. 0.49% of the stock is owned by insiders.

Institutional Investors Weigh In On Cadence Design Systems

Several hedge funds have recently bought and sold shares of the stock. Van ECK Associates Corp lifted its position in shares of Cadence Design Systems by 21.8% during 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 in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Cadence Design Systems by 1.5% in the 2nd 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 valued at $1,270,704,000 after purchasing an additional 48,937 shares in the last quarter. Assenagon Asset Management S.A. lifted its holdings in Cadence Design Systems by 1,097.5% in the 3rd quarter. Assenagon Asset Management S.A. now owns 2,818,141 shares of the software maker’s stock valued at $930,522,000 after purchasing an additional 2,582,812 shares in the last quarter. Legal & General Group Plc purchased a new position in Cadence Design Systems in the 2nd quarter valued at $702,615,000. Finally, Jupiter Topco LLC purchased a new position in Cadence Design Systems in the 2nd quarter valued at $688,746,000. Hedge funds and other institutional investors own 84.85% of the company’s stock.

Key Stories Impacting Cadence Design Systems

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

• Positive Sentiment: Q3 beat and raised guidance: Cadence reported adjusted earnings of $2.11 per share versus the $2.05 consensus estimate and revenue of $1.63 billion versus expectations of $1.61 billion. Revenue grew 22% year over year, while management raised full-year 2026 revenue-growth guidance to approximately 21%. Cadence Design Systems Tops Q3 Expectations, Lifts 2026 Outlook
• Positive Sentiment: AI demand and backlog support growth: Management cited accelerating AI adoption, increased interest in agentic design tools and broad momentum across electronic design automation, intellectual property and system-design businesses. Record backlog reached $8.2 billion, improving visibility into future revenue. Cadence Q3 Earnings Beat Estimates on AI Demand, Outlook Raised
• Positive Sentiment: Analyst support strengthened: JPMorgan raised its price target from $405 to $420 and maintained an “overweight” rating. Needham lifted its target to $430 with a “buy” rating, while Baird raised its target to $440 and maintained “outperform.” Wall Street Zen also upgraded CDNS. JPMorgan Adjusts Price Target on Cadence Design Systems
• Positive Sentiment: Capital return and product initiatives: Cadence authorized an additional $2.5 billion for share repurchases and introduced its Maestro AI model portfolio to support AI “super agents” across chip and system-design workflows.
• Neutral Sentiment: Valuation and trading signals: CDNS trades at a high earnings multiple of about 68, leaving the stock sensitive to execution and growth expectations. Put-option volume rose sharply, indicating some investors are hedging or positioning for downside despite the positive earnings reaction.
• Negative Sentiment: Margin and insider-selling considerations: Commentary indicated that margin pressure partly offset the company’s AI-driven momentum. Separately, reported insider activity showed sales without purchases over the past six months, which may temper sentiment but does not change the stronger operating outlook.

About Cadence Design Systems

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.