Cadence Design Systems (NASDAQ:CDNS) Given New $349.00 Price Target at Piper Sandler

Cadence Design Systems (NASDAQ:CDNS) had its target price upped by stock analysts at Piper Sandler from $325.00 to $349.00 in a research note issued to investors on Tuesday, Marketbeat reports. The firm currently has a “neutral” rating on the software maker’s stock. Piper Sandler’s target price suggests a potential upside of 3.07% from the company’s previous close.

A number of other research analysts have also recently issued reports on CDNS. Weiss Ratings reiterated a “hold (c)” rating on shares of Cadence Design Systems in a research note on Thursday, July 2nd. Wells Fargo & Company increased their price target 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. Benchmark assumed coverage on Cadence Design Systems in a report on Wednesday, July 15th. They set a “buy” rating and a $450.00 price target for the company. Berenberg Bank set a $440.00 price objective on Cadence Design Systems in a research report on Wednesday, May 27th. Finally, KeyCorp boosted their price objective on Cadence Design Systems from $405.00 to $425.00 and gave the stock an “overweight” rating in a research note on Tuesday, April 28th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $397.12.

Cadence Design Systems Trading Up 3.8%

Shares of Cadence Design Systems stock opened at $338.61 on Tuesday. Cadence Design Systems has a 12-month low of $262.75 and a 12-month high of $416.69. The stock has a market capitalization of $93.40 billion, a P/E ratio of 78.93, a price-to-earnings-growth ratio of 3.86 and a beta of 1.15. The company has a 50-day simple moving average of $373.77 and a 200 day simple moving average of $329.63. The company has a quick ratio of 1.32, a current ratio of 1.47 and a debt-to-equity ratio of 0.38.

Cadence Design Systems (NASDAQ:CDNS) last released its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, beating analysts’ consensus estimates of $2.05 by $0.06. The firm had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.58 billion. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The company’s revenue for the quarter was up 24.2% compared to the same quarter last year. During the same period in the previous year, the business earned $1.65 earnings per share. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS. Research analysts expect that Cadence Design Systems will post 6.23 earnings per share for the current fiscal year.

Insider Activity at Cadence Design Systems

In other news, CEO Anirudh Devgan sold 51,887 shares of the company’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $370.00, for a total transaction of $19,198,190.00. Following the transaction, the chief executive officer directly owned 303,525 shares in the company, valued at approximately $112,304,250. This represents a 14.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Wall sold 5,000 shares of the stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $348.71, for a total transaction of $1,743,550.00. Following the sale, the chief financial officer directly owned 81,875 shares in the company, valued at $28,550,631.25. This trade represents a 5.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 157,057 shares of company stock valued at $60,272,277 in the last three months. 0.49% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Pinnacle Wealth Management Advisory Group LLC increased its stake in shares of Cadence Design Systems by 3.1% in the 1st quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,033 shares of the software maker’s stock valued at $287,000 after buying an additional 31 shares during the period. Westfuller Advisors LLC lifted its stake in shares of Cadence Design Systems by 8.2% during the first quarter. Westfuller Advisors LLC now owns 408 shares of the software maker’s stock valued at $113,000 after acquiring an additional 31 shares during the period. Spirepoint Private Client LLC boosted its holdings in Cadence Design Systems by 4.6% in the fourth quarter. Spirepoint Private Client LLC now owns 722 shares of the software maker’s stock valued at $226,000 after acquiring an additional 32 shares during the last quarter. Cornerstone Planning Group LLC boosted its holdings in Cadence Design Systems by 32.0% in the first quarter. Cornerstone Planning Group LLC now owns 132 shares of the software maker’s stock valued at $37,000 after acquiring an additional 32 shares during the last quarter. Finally, KCM Investment Advisors LLC increased its position in Cadence Design Systems by 0.4% in the first quarter. KCM Investment Advisors LLC now owns 8,013 shares of the software maker’s stock worth $2,227,000 after purchasing an additional 32 shares during the period. 84.85% of the stock is currently owned by institutional investors.

Cadence Design Systems News Roundup

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

• Positive Sentiment: Q2 earnings beat expectations: Cadence reported adjusted earnings of $2.11 per share, above the $2.05 consensus estimate. Revenue reached $1.58 billion, in line with expectations but up 24.2% year over year. Cadence Design Systems Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Raised full-year guidance: Management projected 2026 earnings of $8.05-$8.15 per share and revenue of approximately $6.3 billion, modestly above prior expectations. Third-quarter EPS guidance of $2.01-$2.07 also exceeded the $1.84 analyst consensus. Cadence raises annual forecasts as demand booms for AI chip design
• Positive Sentiment: AI-driven demand remains strong: Cadence cited robust customer spending on AI-powered chip and system design software. Reports highlighted a record $8.1 billion backlog and expanding partnerships around agentic AI, supporting expectations for roughly 19% revenue growth in 2026. Cadence signals 19 percent 2026 revenue growth
• Neutral Sentiment: Valuation remains demanding: With CDNS trading at a high earnings multiple and above its 200-day moving average, continued share-price gains may depend on the company sustaining elevated growth and converting its backlog into revenue.

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.