Cadence Design Systems (NASDAQ:CDNS) Price Target Raised to $440.00

Cadence Design Systems (NASDAQ:CDNS) had its price objective hoisted by equities researchers at Robert W. Baird from $420.00 to $440.00 in a report issued on Tuesday, Benzinga reports. The firm presently has an “outperform” rating on the software maker’s stock. Robert W. Baird‘s target price would suggest a potential upside of 36.57% from the company’s current price.

Other equities analysts have also recently issued research reports about the company. Rosenblatt Securities restated a “buy” rating and set a $420.00 price target on shares of Cadence Design Systems in a report on Friday. FBN Securities initiated coverage on Cadence Design Systems in a report on Friday, September 11th. They set an “outperform” rating and a $375.00 price objective on the stock. Needham & Company LLC reiterated a “buy” rating and set a $400.00 target price on shares of Cadence Design Systems in a research report on Tuesday, July 28th. The Goldman Sachs Group raised their target price on shares of Cadence Design Systems from $410.00 to $470.00 and gave the company a “buy” rating in a report on Monday, July 13th. Finally, Oppenheimer reissued a “market perform” rating and issued a $300.00 target price (up from $275.00) on shares of Cadence Design Systems in a report on Tuesday, July 28th. One investment 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’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $406.41.

Cadence Design Systems Stock Up 1.8%

CDNS opened at $322.17 on Tuesday. The company has a market capitalization of $88.72 billion, a PE ratio of 64.05, a price-to-earnings-growth ratio of 3.38 and a beta of 1.13. The firm has a 50-day simple moving average of $318.83 and a two-hundred day simple moving average of $326.92. The company has a quick ratio of 1.53, a current ratio of 1.74 and a debt-to-equity ratio of 0.36. Cadence Design Systems has a 52 week low of $262.75 and a 52 week high of $416.69.

Cadence Design Systems (NASDAQ:CDNS) last issued its earnings results on Monday, October 26th. The software maker reported $2.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.05 by $0.06. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%. The firm had revenue of $1.63 billion for the quarter, compared to analysts’ expectations of $1.61 billion. During the same period in the previous year, the firm posted $1.93 earnings per share. The business’s revenue was up 22.0% compared to the same quarter last year. Analysts forecast that Cadence Design Systems will post 6.42 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Ita M. Brennan sold 180 shares of the stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $285.51, for a total transaction of $51,391.80. Following the sale, the director owned 7,824 shares in the company, valued at approximately $2,233,830.24. This represents a 2.25% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 2,000 shares of Cadence Design Systems stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $277.12, for a total transaction of $554,240.00. Following the transaction, the vice president directly owned 121,793 shares of the company’s stock, valued at $33,751,276.16. The trade was a 1.62% 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. In the last three months, insiders have sold 8,960 shares of company stock worth $2,834,139. Insiders own 0.49% of the company’s stock.

Institutional Trading of Cadence Design Systems

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CDNS. Penobscot Investment Management Company Inc. grew its position in Cadence Design Systems by 7.6% in the 3rd quarter. Penobscot Investment Management Company Inc. now owns 10,939 shares of the software maker’s stock valued at $3,612,000 after acquiring an additional 773 shares during the last quarter. Oppenheimer & Co. Inc. lifted its position in shares of Cadence Design Systems by 40.3% during the third quarter. Oppenheimer & Co. Inc. now owns 1,107 shares of the software maker’s stock worth $366,000 after purchasing an additional 318 shares during the last quarter. Peterson Wealth Services lifted its position in shares of Cadence Design Systems by 3.7% during the third quarter. Peterson Wealth Services now owns 12,655 shares of the software maker’s stock worth $4,178,000 after purchasing an additional 448 shares during the last quarter. Kingswood Wealth Advisors LLC boosted its stake in shares of Cadence Design Systems by 12.8% during the third quarter. Kingswood Wealth Advisors LLC now owns 1,024 shares of the software maker’s stock valued at $338,000 after purchasing an additional 116 shares during the period. Finally, Citizens Financial Group Inc. RI boosted its position in Cadence Design Systems by 3.6% in the 3rd quarter. Citizens Financial Group Inc. RI now owns 4,641 shares of the software maker’s stock valued at $1,532,000 after buying an additional 162 shares during the period. 84.85% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Cadence Design Systems

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

• Positive Sentiment: Cadence beat third-quarter expectations. The company reported adjusted earnings of $2.11 per share versus the $2.05 consensus estimate and revenue of approximately $1.63 billion versus expectations of $1.61 billion. Revenue rose 22% year over year. Why Is Cadence Design Systems Stock Gaining Tuesday?
• Positive Sentiment: Management raised its full-year 2026 outlook. Cadence now expects revenue growth of about 21%, slightly above its prior forecast, suggesting continued strength in semiconductor and system-design spending. Cadence Design Systems: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Record backlog improved visibility. Backlog reached approximately $8.2 billion, while core EDA, intellectual property and system-design businesses all posted strong growth. Cadence Q3 Earnings Call Highlights
• Positive Sentiment: Cadence expanded its AI strategy. The company introduced the Maestro AI Model Portfolio, including Nvidia-backed models that chipmakers can run in-house, potentially strengthening its position in AI-assisted chip design. Cadence Unveils Nvidia-Backed AI Models
• Positive Sentiment: A $2.5 billion expansion of the share-repurchase authorization provides additional support for earnings per share and signals confidence from the board. Cadence Expands Share Repurchase Authorization
• Neutral Sentiment: Investors will continue monitoring profitability and valuation. Cadence trades at a high earnings multiple, and analysts noted some margin pressure despite strong sales growth. Continued execution will be important to justify the premium valuation.
• Negative Sentiment: Recent insider-trading data showed executives were sellers rather than buyers. These transactions may reflect routine diversification, but they could temper enthusiasm at elevated share prices.

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.