Cadence Design Systems (NASDAQ:CDNS) Raised to Strong-Buy at Benchmark

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

Other analysts have also issued research reports about the company. Berenberg Bank set a $440.00 price target on Cadence Design Systems in a research note on Wednesday, May 27th. Robert W. Baird lifted their target price on shares of Cadence Design Systems from $381.00 to $385.00 and gave the company an “outperform” rating in a research note on Tuesday, April 28th. Needham & Company LLC reissued a “buy” rating and issued a $400.00 price target on shares of Cadence Design Systems in a research note on Tuesday, April 28th. Stifel Nicolaus raised their price objective on shares of Cadence Design Systems from $395.00 to $432.00 and gave the stock a “buy” rating in a report on Tuesday, June 9th. Finally, Citigroup lifted their price objective on Cadence Design Systems from $385.00 to $400.00 and gave the company a “buy” rating in a research report on Wednesday, April 29th. One 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 stock. Based on data from MarketBeat, Cadence Design Systems currently has a consensus rating of “Moderate Buy” and an average price target of $393.65.

Cadence Design Systems Stock Down 1.8%

NASDAQ CDNS opened at $364.65 on Wednesday. Cadence Design Systems has a 1 year low of $262.75 and a 1 year high of $416.69. The stock has a market capitalization of $100.58 billion, a PE ratio of 85.00, a PEG ratio of 4.40 and a beta of 1.15. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.47 and a quick ratio of 1.32. The business’s 50-day moving average is $376.74 and its 200 day moving average is $328.56.

Cadence Design Systems (NASDAQ:CDNS) last released its quarterly earnings results on Monday, April 27th. The software maker reported $1.96 EPS for the quarter, beating analysts’ consensus estimates of $1.91 by $0.05. The business had revenue of $1.47 billion during the quarter, compared to analyst estimates of $1.46 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.Cadence Design Systems’s quarterly revenue was up 18.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.57 EPS. 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. Sell-side analysts forecast that Cadence Design Systems will post 6.23 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director James D. Plummer sold 1,511 shares of the business’s stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $381.34, for a total value of $576,204.74. Following the sale, the director directly owned 23,264 shares of the company’s stock, valued at $8,871,493.76. The trade was a 6.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 7,081 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $393.91, for a total value of $2,789,276.71. Following the completion of the sale, the vice president owned 32,181 shares in the company, valued at $12,676,417.71. The trade was a 18.04% decrease in their position. 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 quarter, insiders have sold 157,057 shares of company stock valued at $60,272,277. Insiders own 0.49% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Regent Peak Wealth Advisors LLC grew its stake in shares of Cadence Design Systems by 2.5% in the second quarter. Regent Peak Wealth Advisors LLC now owns 1,697 shares of the software maker’s stock worth $637,000 after acquiring an additional 42 shares during the last quarter. Tema ETFs LLC boosted its stake in Cadence Design Systems by 10.2% in 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 in the last quarter. E. Ohman J or Asset Management AB grew its position 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 purchasing an additional 450 shares during the last quarter. Handelsbanken Fonder AB grew its position in 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 purchasing an additional 41,693 shares during the last quarter. Finally, Bay Colony Advisory Group Inc d b a Bay Colony Advisors increased its stake in 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 purchasing an additional 119 shares in the last quarter. 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 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

About Cadence Design Systems

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.