Cadence Design Systems (NASDAQ:CDNS) Stock Rating Cut to “Hold” at Wall Street Zen

Wall Street Zen lowered shares of Cadence Design Systems (NASDAQ:CDNS) from a buy rating to a hold rating in a research note released on Tuesday,Wall Street Zen reports.

Other equities research analysts have also issued reports about the company. Citigroup raised their price objective on Cadence Design Systems from $400.00 to $420.00 and gave the stock a “buy” rating in a research note on Tuesday, July 28th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $420.00 target price (up from $400.00) on shares of Cadence Design Systems in a report on Wednesday, October 7th. Rothschild & Co Redburn boosted their target price on Cadence Design Systems from $385.00 to $395.00 and gave the stock a “buy” rating in a research report on Tuesday, July 28th. Bank of America upped their target price on Cadence Design Systems from $400.00 to $420.00 and gave the company a “buy” rating in a report on Tuesday, July 28th. Finally, KeyCorp reiterated an “overweight” rating on shares of Cadence Design Systems in a research report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Cadence Design Systems has a consensus rating of “Moderate Buy” and an average target price of $404.14.

Cadence Design Systems Stock Down 1.8%

CDNS stock opened at $319.87 on Tuesday. Cadence Design Systems has a 12 month low of $262.75 and a 12 month high of $416.69. The firm has a market cap of $88.09 billion, a PE ratio of 52.90, a P/E/G ratio of 3.49 and a beta of 1.13. The firm has a 50 day simple moving average of $318.58 and a 200 day simple moving average of $339.93. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.53.

Cadence Design Systems (NASDAQ:CDNS) last issued its earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share for the quarter, topping analysts’ consensus estimates of $2.05 by $0.06. The firm had revenue of $1.58 billion during the quarter, compared to analysts’ expectations of $1.58 billion. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The firm’s revenue for the quarter was up 24.2% compared to the same quarter last year. During the same period last year, the firm posted $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. Equities research analysts forecast that Cadence Design Systems will post 6.41 earnings per share for the current fiscal year.

Insider Transactions at Cadence Design Systems

In other Cadence Design Systems news, VP Paul Cunningham sold 2,000 shares of the business’s stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $324.13, for a total value of $648,260.00. Following the transaction, the vice president owned 119,612 shares in the company, valued at $38,769,837.56. The trade was a 1.64% decrease in their ownership of the stock. 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, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the company’s stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $350.07, for a total value of $437,587.50. Following the completion of the transaction, the director directly owned 39,544 shares in the company, valued at approximately $13,843,168.08. The trade was a 3.06% decrease in their ownership of the stock. 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 8,960 shares of company stock worth $2,834,139 in the last ninety days. Company insiders own 0.49% of the company’s stock.

Institutional Investors Weigh In On Cadence Design Systems

Several institutional investors have recently made changes to their positions in CDNS. George Kaiser Family Foundation acquired a new stake in Cadence Design Systems during the second quarter worth about $725,000. Vega Investment Solutions bought a new position in Cadence Design Systems during the second quarter valued at about $1,957,000. MassMutual Private Wealth & Trust FSB raised its holdings in Cadence Design Systems by 65.7% in the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 26,160 shares of the software maker’s stock valued at $8,638,000 after acquiring an additional 10,376 shares in the last quarter. Osmosis Investment Management UK Ltd acquired a new position in Cadence Design Systems in the 2nd quarter valued at approximately $5,238,000. Finally, Lombard Odier Asset Management Europe Ltd raised its holdings in Cadence Design Systems by 30.9% in the 1st quarter. Lombard Odier Asset Management Europe Ltd now owns 52,941 shares of the software maker’s stock valued at $14,711,000 after acquiring an additional 12,495 shares in the last quarter. 84.85% of the stock is currently owned by institutional investors and hedge funds.

Key Cadence Design Systems News

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

• Positive Sentiment: Expanding AI and SoC design partnership: Socionext is collaborating with Cadence to apply agentic AI to the physical design of large-scale, advanced-process system-on-chip products. The relationship highlights demand for Cadence’s AI-enabled electronic design automation tools. Socionext Expands Agentic AI to Advanced, Large-Scale SoC Physical Design
• Positive Sentiment: Long-term growth thesis remains intact: Cadence’s deep integration into customer workflows, partnerships with TSMC, Samsung, Google Cloud and NVIDIA, recurring revenue, approximately $8.1 billion backlog and reported 45.5% non-GAAP operating margin support revenue visibility. Rising chip complexity may further increase demand for its design software. Cadence: The Design Bottleneck Is Becoming More Valuable
• Neutral Sentiment: Upcoming earnings are a near-term catalyst: Analysts expect Cadence to release quarterly results shortly, while recent commentary points to earnings growth potential and factors that could support a beat. Investors may remain cautious ahead of the report because guidance and forward demand will be central to the valuation debate. Cadence Earnings Expected to Grow
• Negative Sentiment: Valuation and execution risks are pressuring the shares: Cadence trades at a premium valuation, making the stock sensitive to expectations for growth and earnings. Export restrictions and the integration of recent acquisitions, including Hexagon, are identified as material risks. Cadence: The Design Bottleneck Is Becoming More Valuable
• Negative Sentiment: Cautious analyst stance: Wall Street Zen lowered its rating on CDNS to Hold, adding to investor caution and likely contributing to the stock’s weaker performance despite the company’s favorable growth narrative. Cadence Rating Lowered to Hold

Cadence Design Systems Company Profile

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.