Cadence Design Systems, Inc. (NASDAQ:CDNS) Receives $387.00 Average Price Target from Brokerages

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS) have been given an average recommendation of “Moderate Buy” by the seventeen brokerages that are presently covering the stock, Marketbeat reports. Three investment analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. The average twelve-month price objective among analysts that have covered the stock in the last year is $393.6471.

CDNS has been the subject of a number of analyst reports. Benchmark initiated coverage on Cadence Design Systems in a research note on Wednesday. They set a “buy” rating and a $450.00 price objective for the company. Citigroup lifted their target price on shares of Cadence Design Systems from $385.00 to $400.00 and gave the stock a “buy” rating in a research note on Wednesday, April 29th. Wells Fargo & Company upped their price target on shares of Cadence Design Systems from $400.00 to $425.00 and gave the company an “overweight” rating in a report on Tuesday, May 26th. Berenberg Bank set a $440.00 price target on shares of Cadence Design Systems in a research report on Wednesday, May 27th. Finally, Robert W. Baird raised their price target on shares of Cadence Design Systems from $381.00 to $385.00 and gave the stock an “outperform” rating in a report on Tuesday, April 28th.

Key Headlines Impacting Cadence Design Systems

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

• Positive Sentiment: Cadence announced a partnership with Rapidus to integrate its InnoStack AI Super Agent into Rapidus’ AI-Agentic Design Solution, expanding Cadence’s reach in advanced-node SoC design and reinforcing its AI design leadership. Rapidus and Cadence Partner on Agentic AI for Advanced SoC Design
• Positive Sentiment: Cadence introduced AuraStack AI Super Agent for PCB and advanced packaging design, a new agentic AI platform that could deepen demand for its software across more stages of chip development. Cadence Introduces AuraStack AI Super Agent
• Positive Sentiment: Multiple reports highlighted Cadence as a beneficiary of booming AI chip demand and the shortage of chip-design talent, which supports the investment case for its automation software. Chip design software dubbed a $3.7 billion opportunity
• Neutral Sentiment: Market commentary says Cadence may be undervalued ahead of its July 27 earnings report, suggesting investors are waiting for confirmation that recent AI product momentum will translate into results. Cadence Design Systems (CDNS) Could Be 3% Undervalued Ahead Of July 27 Earnings
• Neutral Sentiment: Cadence was also noted as a trending stock among Zacks users, reflecting elevated attention rather than a clear fundamental catalyst. Cadence Design Systems, Inc. (CDNS) Is a Trending Stock
• Negative Sentiment: One market note said CDNS underperformed peers on Wednesday, which may be contributing to a cautious tone around the shares despite the upbeat AI narrative. Cadence Design Systems Inc. stock underperforms Wednesday when compared to competitors

Cadence Design Systems Trading Down 1.8%

NASDAQ CDNS opened at $364.65 on Friday. The firm has a market cap of $100.58 billion, a PE ratio of 85.00, a price-to-earnings-growth ratio of 4.40 and a beta of 1.15. Cadence Design Systems has a 1-year low of $262.75 and a 1-year high of $416.69. The stock has a 50-day moving average of $376.74 and a 200-day moving average of $328.56. The company has a current ratio of 1.47, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38.

Cadence Design Systems (NASDAQ:CDNS) last posted its quarterly earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.91 by $0.05. The business had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.46 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.Cadence Design Systems’s revenue for the quarter was up 18.6% compared to the same quarter last year. During the same period last year, the company earned $1.57 EPS. Cadence Design Systems has set its FY 2026 guidance at 7.850-7.950 EPS and its Q2 2026 guidance at 2.020-2.080 EPS. As a group, sell-side analysts forecast that Cadence Design Systems will post 6.23 EPS for the current year.

Insider Activity

In other news, Director James D. Plummer sold 1,511 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $381.34, for a total transaction of $576,204.74. Following the completion of the sale, the director directly owned 23,264 shares in the company, valued at approximately $8,871,493.76. This represents a 6.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Wall sold 5,000 shares of the stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $348.71, for a total transaction of $1,743,550.00. Following the sale, the chief financial officer owned 81,875 shares of the company’s stock, valued at approximately $28,550,631.25. This represents a 5.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 157,057 shares of company stock valued at $60,272,277. 0.49% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cadence Design Systems

Several institutional investors and hedge funds have recently bought and sold shares of the business. University of Texas Texas AM Investment Management Co. bought a new stake in shares of Cadence Design Systems in the 4th quarter worth approximately $28,000. Arlington Trust Co LLC raised its holdings in shares of Cadence Design Systems by 154.3% during the second quarter. Arlington Trust Co LLC now owns 89 shares of the software maker’s stock valued at $33,000 after acquiring an additional 54 shares in the last quarter. Imprint Wealth LLC bought a new position in shares of Cadence Design Systems during the third quarter valued at approximately $31,000. Whipplewood Advisors LLC lifted its stake in Cadence Design Systems by 933.3% in the first quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker’s stock worth $26,000 after acquiring an additional 84 shares during the period. Finally, Swiss RE Ltd. purchased a new stake in Cadence Design Systems in the fourth quarter worth $29,000. Hedge funds and other institutional investors own 84.85% of the company’s stock.

About Cadence Design Systems

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.