Morgan Stanley Has Lowered Expectations for Cadence Design Systems (NASDAQ:CDNS) Stock Price

Cadence Design Systems (NASDAQ:CDNS) had its price objective cut by equities researchers at Morgan Stanley from $385.00 to $370.00 in a report issued on Wednesday, MarketBeat Ratings reports. The firm currently has an “overweight” rating on the software maker’s stock. Morgan Stanley’s price objective points to a potential upside of 24.75% from the company’s previous close.

Other analysts have also issued research reports about the stock. Wells Fargo & Company decreased their target price on shares of Cadence Design Systems from $410.00 to $375.00 and set an “overweight” rating on the stock in a research report on Wednesday. Citigroup started coverage on Cadence Design Systems in a research note on Monday, November 24th. They set a “buy” rating and a $385.00 price target on the stock. Wolfe Research reaffirmed an “outperform” rating and issued a $385.00 price objective on shares of Cadence Design Systems in a research report on Tuesday, October 28th. Robert W. Baird increased their target price on Cadence Design Systems from $390.00 to $418.00 and gave the stock an “outperform” rating in a research report on Tuesday, October 28th. Finally, Needham & Company LLC reissued a “buy” rating and issued a $390.00 price target on shares of Cadence Design Systems in a research note on Monday, December 22nd. Fifteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $376.50.

Cadence Design Systems Stock Down 2.8%

CDNS opened at $296.59 on Wednesday. The firm has a market cap of $80.73 billion, a P/E ratio of 73.05, a PEG ratio of 3.39 and a beta of 1.01. The business’s fifty day simple moving average is $308.44 and its 200 day simple moving average is $328.50. Cadence Design Systems has a 52 week low of $221.56 and a 52 week high of $376.45. 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 released its earnings results on Tuesday, February 17th. The software maker reported $1.99 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.91 by $0.08. Cadence Design Systems had a net margin of 20.93% and a return on equity of 29.34%. The company had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.42 billion. During the same period in the prior year, the firm earned $1.88 EPS. The firm’s quarterly revenue was up 6.2% on a year-over-year basis. 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. As a group, equities research analysts anticipate that Cadence Design Systems will post 5.41 EPS for the current fiscal year.

Insider Transactions at Cadence Design Systems

In other news, VP Paul Cunningham sold 1,000 shares of Cadence Design Systems stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $295.09, for a total value of $295,090.00. Following the transaction, the vice president directly owned 95,137 shares of the company’s stock, valued at $28,073,977.33. The trade was a 1.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CFO John M. Wall sold 27,805 shares of the business’s stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $318.57, for a total value of $8,857,838.85. Following the sale, the chief financial officer owned 69,957 shares of the company’s stock, valued at $22,286,201.49. The trade was a 28.44% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 56,475 shares of company stock valued at $18,505,486 in the last ninety days. Company insiders own 1.99% of the company’s stock.

Institutional Investors Weigh In On Cadence Design Systems

Large investors have recently made changes to their positions in the business. Peterson Wealth Services lifted its stake in shares of Cadence Design Systems by 1,501.3% during the third quarter. Peterson Wealth Services now owns 187,115 shares of the software maker’s stock worth $65,726,000 after purchasing an additional 175,430 shares in the last quarter. Pacer Advisors Inc. grew its stake in shares of Cadence Design Systems by 83.3% in the third quarter. Pacer Advisors Inc. now owns 182,348 shares of the software maker’s stock valued at $64,052,000 after buying an additional 82,856 shares in the last quarter. Stanley Laman Group Ltd. purchased a new stake in shares of Cadence Design Systems during the 3rd quarter valued at about $6,177,000. Patton Fund Management Inc. lifted its position in Cadence Design Systems by 1,743.7% during the 3rd quarter. Patton Fund Management Inc. now owns 13,994 shares of the software maker’s stock worth $4,916,000 after acquiring an additional 13,235 shares in the last quarter. Finally, Westerkirk Capital Inc. purchased a new position in Cadence Design Systems in the 2nd quarter worth approximately $2,024,000. Institutional investors and hedge funds own 84.85% of the company’s stock.

Cadence Design Systems News Roundup

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.