Cadence Design Systems’ (CDNS) “Buy” Rating Reaffirmed at Needham & Company LLC

Cadence Design Systems (NASDAQ:CDNS)‘s stock had its “buy” rating restated by analysts at Needham & Company LLC in a report released on Tuesday,Benzinga reports. They currently have a $400.00 price target on the software maker’s stock. Needham & Company LLC’s price target suggests a potential upside of 18.79% from the company’s current price.

A number of other brokerages also recently issued reports on CDNS. KeyCorp reaffirmed an “overweight” rating on shares of Cadence Design Systems in a report on Tuesday. Rosenblatt Securities reaffirmed a “buy” rating and set a $360.00 price target on shares of Cadence Design Systems in a report on Friday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Cadence Design Systems in a report on Monday, December 29th. Wells Fargo & Company lowered their price target on Cadence Design Systems from $410.00 to $375.00 and set an “overweight” rating on the stock in a report on Wednesday, February 18th. Finally, Stifel Nicolaus set a $395.00 price target on Cadence Design Systems in a report on Wednesday, February 18th. Fifteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Cadence Design Systems presently has an average rating of “Moderate Buy” and an average price target of $375.56.

Cadence Design Systems Trading Up 1.2%

Cadence Design Systems stock opened at $336.74 on Tuesday. The company has a current ratio of 2.86, a quick ratio of 2.67 and a debt-to-equity ratio of 0.45. The business’s fifty day simple moving average is $294.47 and its two-hundred day simple moving average is $309.05. Cadence Design Systems has a 12 month low of $262.75 and a 12 month high of $376.45. The company has a market capitalization of $92.97 billion, a price-to-earnings ratio of 82.94, a price-to-earnings-growth ratio of 4.00 and a beta of 1.04.

Cadence Design Systems (NASDAQ:CDNS) last released its earnings results on Monday, April 27th. The software maker reported $1.96 EPS for the quarter, topping the consensus estimate of $1.89 by $0.07. Cadence Design Systems had a return on equity of 29.34% and a net margin of 20.93%.The business had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.45 billion. During the same period in the previous year, the company posted $1.57 earnings per share. The company’s revenue for the quarter was up 18.6% compared to the same quarter last year. 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 analysts predict that Cadence Design Systems will post 6.51 earnings per share for the current fiscal year.

Insider Transactions at Cadence Design Systems

In other news, VP Paul Cunningham sold 1,000 shares of the company’s stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $297.78, for a total value of $297,780.00. Following the completion of the transaction, the vice president owned 94,137 shares of the company’s stock, valued at $28,032,115.86. This represents a 1.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Ita M. Brennan sold 180 shares of the company’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $295.03, for a total value of $53,105.40. Following the completion of the transaction, the director directly owned 7,470 shares of the company’s stock, valued at approximately $2,203,874.10. This trade represents a 2.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 24,680 shares of company stock valued at $7,579,340 over the last 90 days. Company insiders own 0.49% of the company’s stock.

Institutional Investors Weigh In On Cadence Design Systems

Several hedge funds and other institutional investors have recently modified their holdings of CDNS. Norges Bank purchased a new stake in shares of Cadence Design Systems in the fourth quarter worth approximately $1,352,922,000. J. Stern & Co. LLP raised its holdings in shares of Cadence Design Systems by 10,159.3% in the fourth quarter. J. Stern & Co. LLP now owns 2,953,256 shares of the software maker’s stock worth $923,129,000 after buying an additional 2,924,470 shares during the period. Wellington Management Group LLP raised its holdings in shares of Cadence Design Systems by 218.6% in the fourth quarter. Wellington Management Group LLP now owns 2,553,225 shares of the software maker’s stock worth $798,087,000 after buying an additional 1,751,927 shares during the period. Massachusetts Financial Services Co. MA raised its holdings in shares of Cadence Design Systems by 16.0% in the third quarter. Massachusetts Financial Services Co. MA now owns 5,314,407 shares of the software maker’s stock worth $1,866,739,000 after buying an additional 731,788 shares during the period. Finally, Assenagon Asset Management S.A. raised its holdings in shares of Cadence Design Systems by 120.9% in the fourth quarter. Assenagon Asset Management S.A. now owns 1,124,417 shares of the software maker’s stock worth $351,470,000 after buying an additional 615,440 shares during the period. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Cadence Design Systems

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

• Positive Sentiment: Q1 results beat consensus: EPS $1.96 vs. ~$1.89 and revenue $1.47B (up ~18.6% YoY), showing continued top‑line growth. Cadence Design Systems Tops Q1 Targets, Guides Above Views
• Positive Sentiment: Management raised FY‑2026 and Q2 guidance well above Street expectations (FY EPS guide 7.85–7.95 and revenue guide mid‑$6B; Q2 EPS 2.02–2.08 and revenue ~ $1.6B), driven by sustained demand for AI‑focused chip design tools. This is the primary catalyst for upside. Cadence lifts annual revenue forecast on sustained AI chip-design boom
• Neutral Sentiment: Management commentary and the full Q1 call transcript provide color on AI-related demand, product cadence and customer timing — useful for judging sustainability but not immediately price‑moving relative to the guide. Q1 2026 Earnings Call Transcript
• Negative Sentiment: Cash flow and liquidity mixed: operating cash flow declined (~27% YoY) and cash & equivalents fell markedly (~49% YoY) while total liabilities rose — investors may discount valuation because of weaker cash conversion. Quiver Quantitative: Stock Falls on Q1 2026 Earnings
• Negative Sentiment: Pre‑earnings options and insider activity signalled hedging/selling: unusually large put buying ahead of results and recent insider sell transactions may pressure sentiment despite the strong guide. (Options and insider details reported in market coverage and data feeds.)

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.