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

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

A number of other brokerages have also recently weighed in on CDNS. Piper Sandler boosted their price target on shares of Cadence Design Systems from $319.00 to $325.00 and gave the company a “neutral” rating in a research report on Tuesday, April 28th. Wells Fargo & Company lifted their target price 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. KeyCorp boosted 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. Rosenblatt Securities upped their target price on Cadence Design Systems from $375.00 to $410.00 and gave the company a “buy” rating in a research report on Tuesday. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $400.00 price target on shares of Cadence Design Systems in a research report on Tuesday, April 28th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $393.65.

Cadence Design Systems Stock Performance

Shares of CDNS opened at $364.65 on Wednesday. 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 52-week low of $262.75 and a 52-week high of $416.69. The company has a quick ratio of 1.32, a current ratio of 1.47 and a debt-to-equity ratio of 0.38. The stock has a 50 day moving average price of $376.74 and a 200 day moving average price of $328.56.

Cadence Design Systems (NASDAQ:CDNS) last released 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. The company had revenue of $1.47 billion for the quarter, compared to analysts’ expectations of $1.46 billion. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The firm’s revenue for the quarter was up 18.6% on a year-over-year basis. During the same quarter last year, the company earned $1.57 earnings per share. 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. Research analysts predict that Cadence Design Systems will post 6.23 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director James D. Plummer sold 1,511 shares of the firm’s stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $381.34, for a total transaction of $576,204.74. Following the transaction, the director owned 23,264 shares of the company’s stock, valued at $8,871,493.76. This trade represents a 6.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 10,500 shares of the business’s stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $339.00, for a total value of $3,559,500.00. Following the completion of the transaction, the vice president owned 33,946 shares in the company, valued at $11,507,694. This trade represents a 23.62% 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. Insiders sold a total of 157,057 shares of company stock valued at $60,272,277 in the last quarter. Corporate insiders own 0.49% of the company’s stock.

Institutional Trading of Cadence Design Systems

A number of hedge funds have recently added to or reduced their stakes in CDNS. Norges Bank acquired a new position in shares of Cadence Design Systems in the fourth quarter valued at approximately $1,352,922,000. J. Stern & Co. LLP grew its position in Cadence Design Systems by 10,159.3% in the 4th quarter. J. Stern & Co. LLP now owns 2,953,256 shares of the software maker’s stock valued at $923,129,000 after buying an additional 2,924,470 shares during the last quarter. Wellington Management Group LLP increased its stake in Cadence Design Systems by 218.6% in the 4th quarter. Wellington Management Group LLP now owns 2,553,225 shares of the software maker’s stock valued at $798,087,000 after buying an additional 1,751,927 shares during the period. Arrowstreet Capital Limited Partnership raised its position in Cadence Design Systems by 232.1% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,430,599 shares of the software maker’s stock worth $397,521,000 after buying an additional 999,862 shares during the last quarter. Finally, Assenagon Asset Management S.A. boosted 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 valued at $351,470,000 after acquiring an additional 615,440 shares in the last quarter. 84.85% of the stock is 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: 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.