Needham & Company LLC Issues Positive Forecast for Cadence Design Systems (NASDAQ:CDNS) Stock Price

Cadence Design Systems (NASDAQ:CDNS) had its price target boosted by Needham & Company LLC from $400.00 to $430.00 in a research report issued on Tuesday, Marketbeat.com reports. The firm presently has a “buy” rating on the software maker’s stock. Needham & Company LLC‘s target price points to a potential upside of 33.47% from the company’s current price.

Several other equities analysts also recently issued reports on the stock. FBN Securities started coverage on shares of Cadence Design Systems in a report on Friday, September 11th. They set an “outperform” rating and a $375.00 price target for the company. KeyCorp reaffirmed an “overweight” rating on shares of Cadence Design Systems in a report on Tuesday, July 28th. The Goldman Sachs Group increased their price objective on shares of Cadence Design Systems from $410.00 to $470.00 and gave the stock a “buy” rating in a report on Monday, July 13th. Citigroup lifted their price objective on shares of Cadence Design Systems from $400.00 to $420.00 and gave the company a “buy” rating in a research report on Tuesday, July 28th. Finally, Benchmark reissued a “buy” rating on shares of Cadence Design Systems in a research note on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $406.41.

Cadence Design Systems Trading Up 1.8%

NASDAQ:CDNS opened at $322.17 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 capitalization of $88.72 billion, a P/E ratio of 64.05, a P/E/G ratio of 3.38 and a beta of 1.13. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.53. The business has a 50 day simple moving average of $318.83 and a 200 day simple moving average of $326.92.

Cadence Design Systems (NASDAQ:CDNS) last issued its quarterly earnings data on Monday, October 26th. The software maker reported $2.11 EPS for the quarter, topping analysts’ consensus estimates 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 during the quarter, compared to the consensus estimate of $1.61 billion. During the same period in the prior year, the business earned $1.93 EPS. The firm’s revenue was up 22.0% on a year-over-year basis. Equities research analysts predict that Cadence Design Systems will post 6.42 EPS for the current year.

Insider Buying and Selling at Cadence Design Systems

In other news, Director Ita Brennan sold 180 shares of Cadence Design Systems stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $285.51, for a total value of $51,391.80. Following the transaction, the director owned 7,824 shares of the company’s stock, valued at $2,233,830.24. The trade was a 2.25% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 2,000 shares of the business’s stock in a transaction that occurred 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 completion of the sale, the vice president owned 121,793 shares in the company, 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 quarter, insiders have sold 8,960 shares of company stock worth $2,834,139. Company insiders own 0.49% of the company’s stock.

Institutional Investors Weigh In On Cadence Design Systems

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Avalon Trust Co bought a new stake in shares of Cadence Design Systems during the 2nd quarter worth $30,000. Fiduciary Financial Advisors acquired a new position in Cadence Design Systems in the 2nd quarter worth approximately $31,000. Arlington Trust Co LLC grew its position in Cadence Design Systems by 154.3% during the 2nd quarter. Arlington Trust Co LLC now owns 89 shares of the software maker’s stock worth $33,000 after purchasing an additional 54 shares in the last quarter. Burkett Financial Services LLC acquired a new stake in Cadence Design Systems during the 3rd quarter valued at $30,000. Finally, Whipplewood Advisors LLC raised its stake in Cadence Design Systems by 933.3% during the 1st quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker’s stock valued at $26,000 after purchasing an additional 84 shares during the period. Institutional investors and hedge funds own 84.85% of the company’s stock.

More Cadence Design Systems News

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.