Cadence Design Systems (NASDAQ:CDNS) Raised to Buy at Rosenblatt Securities

Cadence Design Systems (NASDAQ:CDNS) was upgraded by equities research analysts at Rosenblatt Securities from a “neutral” rating to a “buy” rating in a research note issued on Wednesday, MarketBeat.com reports. The firm currently has a $360.00 price objective on the software maker’s stock, up from their previous price objective of $335.00. Rosenblatt Securities’ price target would indicate a potential upside of 21.38% from the company’s previous close.

Several other analysts have also issued reports on CDNS. Wells Fargo & Company reduced their target price on Cadence Design Systems from $410.00 to $375.00 and set an “overweight” rating on the stock in a report on Wednesday. Robert W. Baird increased their price objective on shares of Cadence Design Systems from $390.00 to $418.00 and gave the stock an “outperform” rating in a research note on Tuesday, October 28th. JPMorgan Chase & Co. raised their target price on shares of Cadence Design Systems from $390.00 to $405.00 and gave the company an “overweight” rating in a report on Tuesday, October 28th. Wolfe Research reaffirmed an “outperform” rating and set a $385.00 price target on shares of Cadence Design Systems in a report on Tuesday, October 28th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Cadence Design Systems in a research note on Monday, December 29th. Fifteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $376.50.

Cadence Design Systems Stock Performance

NASDAQ CDNS opened at $296.59 on Wednesday. The firm has a 50-day moving average price of $308.44 and a two-hundred day moving average price of $328.50. Cadence Design Systems has a 12-month low of $221.56 and a 12-month high of $376.45. The company has a market capitalization of $80.73 billion, a P/E ratio of 73.05, a P/E/G ratio of 3.39 and a beta of 1.01. The company has a quick ratio of 2.84, a current ratio of 2.86 and a debt-to-equity ratio of 0.45.

Cadence Design Systems (NASDAQ:CDNS) last announced its earnings results on Tuesday, February 17th. The software maker reported $1.99 EPS for the quarter, topping the consensus estimate of $1.91 by $0.08. The company had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.42 billion. Cadence Design Systems had a net margin of 20.93% and a return on equity of 29.34%. The business’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same period last year, the firm earned $1.88 earnings per share. Cadence Design Systems has set its Q1 2026 guidance at 1.890-1.950 EPS and its FY 2026 guidance at 8.050-8.150 EPS. Analysts anticipate that Cadence Design Systems will post 5.41 earnings per share for the current year.

Insider Transactions at Cadence Design Systems

In other Cadence Design Systems news, CEO Anirudh Devgan sold 20,000 shares of the business’s stock in a transaction on Friday, December 5th. The shares were sold at an average price of $340.00, for a total transaction of $6,800,000.00. Following the sale, the chief executive officer owned 195,844 shares of the company’s stock, valued at approximately $66,586,960. The trade was a 9.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Paul Cunningham sold 1,000 shares of the stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $295.09, for a total value of $295,090.00. Following the completion of the transaction, the vice president owned 95,137 shares of the company’s stock, valued at $28,073,977.33. The trade was a 1.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 56,475 shares of company stock valued at $18,505,486. Corporate insiders own 1.99% of the company’s stock.

Institutional Trading of Cadence Design Systems

Several hedge funds and other institutional investors have recently made changes to their positions in CDNS. Norges Bank acquired a new position in shares of Cadence Design Systems in the 4th quarter valued at about $1,352,922,000. J. Stern & Co. LLP lifted its stake in Cadence Design Systems by 10,159.3% in the fourth 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 period. Wellington Management Group LLP boosted its holdings in shares of Cadence Design Systems by 218.6% during the 4th quarter. Wellington Management Group LLP now owns 2,553,225 shares of the software maker’s stock worth $798,087,000 after buying an additional 1,751,927 shares in the last quarter. Massachusetts Financial Services Co. MA grew its position in shares of Cadence Design Systems by 16.0% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 5,314,407 shares of the software maker’s stock worth $1,866,739,000 after buying an additional 731,788 shares during the period. Finally, Voya Investment Management LLC increased its stake in shares of Cadence Design Systems by 914.2% in the 3rd quarter. Voya Investment Management LLC now owns 691,071 shares of the software maker’s stock valued at $242,746,000 after acquiring an additional 622,934 shares in the last quarter. 84.85% of the stock is currently owned by institutional investors.

Key Cadence Design Systems News

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

• Positive Sentiment: Q4 beat and 2026 guidance: Cadence reported Q4 revenue and EPS above estimates and issued FY‑2026 guidance that implies healthy growth and margin expansion; the print and outlook are the primary bullish catalyst behind the initial rally after earnings. CNBC: Cadence shares pop on earnings beat, custom chip optimism
• Positive Sentiment: AI product traction: Cadence highlighted its ChipStack AI Super Agent and AI-driven tools (Cerebrus) that management says can materially speed chip design and improve power/performance/area — strengthening Cadence’s growth narrative and valuation premium. Yahoo Finance: Cadence ChipStack AI Super Agent Launch
• Positive Sentiment: Analyst bullishness and price-target support: Several firms (Bank of America, Needham, others) reaffirmed buy ratings or raised targets after the print, supporting upside narratives for investors focused on AI and semiconductor design exposure. InsiderMonkey: Bank of America remains bullish
• Neutral Sentiment: Backlog and visibility: Management flagged a record backlog (~$7.8B) and that a large portion of 2026 revenue is already visible — positive for revenue certainty but implies some growth is already priced in. MarketBeat: CDNS post-earnings note
• Negative Sentiment: Heavy put and unusual options activity: Reported spikes in put buying and large volumes of put options suggest some traders are betting on a pullback or hedging exposure, which can amplify intraday selling pressure. American Banking News: Traders buy put options
• Negative Sentiment: Mixed analyst moves and target trims: A few firms trimmed price targets or maintained neutral ratings (Piper Sandler cut its target; Rosenblatt and others showed mixed messages), adding uncertainty about near-term upside and prompting profit-taking. Benzinga: Analyst revisions after Q4
• Neutral Sentiment: Short-interest data reported is unreliable/zero in recent feed (likely a data issue) and should not be relied on for trading signals. (No meaningful linked source.)

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.