Wall Street Zen Upgrades Cadence Design Systems (NASDAQ:CDNS) to Buy

Posted by Geri Gentry on Aug 3rd, 2026

Cadence Design Systems (NASDAQ:CDNS – Get Free Report) was upgraded by stock analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Saturday.

Several other research analysts have also issued reports on the company. Stifel Nicolaus raised their price target on Cadence Design Systems from $395.00 to $432.00 and gave the stock a “buy” rating in a research report on Tuesday, June 9th. Berenberg Bank set a $440.00 price objective on Cadence Design Systems in a report on Wednesday, May 27th. Morgan Stanley reissued an “overweight” rating and issued a $400.00 target price on shares of Cadence Design Systems in a research note on Wednesday. Needham & Company LLC restated a “buy” rating and set a $400.00 target price on shares of Cadence Design Systems in a report on Tuesday, July 28th. Finally, Oppenheimer restated a “market perform” rating and set a $300.00 target price on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Thirteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Cadence Design Systems currently has a consensus rating of “Moderate Buy” and a consensus target price of $405.69.

Check Out Our Latest Research Report on CDNS

Cadence Design Systems Stock Performance

CDNS opened at $340.02 on Friday. 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 company has a market cap of $93.64 billion, a price-to-earnings ratio of 67.60, a price-to-earnings-growth ratio of 3.65 and a beta of 1.15. The firm has a 50 day simple moving average of $372.37 and a 200 day simple moving average of $330.05. Cadence Design Systems has a fifty-two week low of $262.75 and a fifty-two week high of $416.69.

Cadence Design Systems (NASDAQ:CDNS – Get Free Report) last announced its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.05 by $0.06. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The firm had revenue of $1.58 billion for the quarter, compared to analysts’ expectations of $1.58 billion. During the same period last year, the firm earned $1.65 earnings per share. The business’s revenue for the quarter was up 24.2% on a year-over-year basis. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS. On average, sell-side analysts anticipate that Cadence Design Systems will post 6.4 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Anirudh Devgan sold 51,887 shares of the company’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $370.00, for a total value of $19,198,190.00. Following the completion of the sale, the chief executive officer owned 303,525 shares in the company, valued at $112,304,250. This represents a 14.60% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James D. Plummer sold 1,511 shares of the firm’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $381.34, for a total value of $576,204.74. Following the sale, the director directly owned 23,264 shares in the company, valued at $8,871,493.76. The trade was a 6.10% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 145,557 shares of company stock worth $56,375,287 over the last ninety days. Insiders own 0.49% of the company’s stock.

Hedge Funds Weigh In On Cadence Design Systems

Several institutional investors have recently modified their holdings of the business. Brighton Jones LLC raised its holdings in Cadence Design Systems by 80.2% during the 4th quarter. Brighton Jones LLC now owns 1,519 shares of the software maker’s stock worth $456,000 after buying an additional 676 shares during the period. Integrated Wealth Concepts LLC increased its position in shares of Cadence Design Systems by 3.8% during the first quarter. Integrated Wealth Concepts LLC now owns 2,203 shares of the software maker’s stock worth $560,000 after acquiring an additional 80 shares in the last quarter. Thompson Davis & CO. Inc. bought a new stake in shares of Cadence Design Systems during the second quarter worth $205,000. NewEdge Advisors LLC raised its holdings in shares of Cadence Design Systems by 39.3% during the second quarter. NewEdge Advisors LLC now owns 34,787 shares of the software maker’s stock worth $10,720,000 after acquiring an additional 9,807 shares during the period. Finally, Glenview Trust co acquired a new stake in shares of Cadence Design Systems during the second quarter worth $226,000. Institutional investors own 84.85% of the company’s stock.

Cadence Design Systems Company Profile

(Get Free Report)

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.