Cadence Design Systems (NASDAQ:CDNS) Price Target Raised to $420.00

Posted by Brian Himes on Jul 31st, 2026

Cadence Design Systems (NASDAQ:CDNS – Free Report) had its target price upped by Robert W. Baird from $415.00 to $420.00 in a report issued on Tuesday morning, MarketBeat.com reports. They currently have an outperform rating on the software maker’s stock.

A number of other research analysts also recently issued reports on CDNS. Benchmark assumed coverage on Cadence Design Systems in a report on Wednesday, July 15th. They issued a “buy” rating and a $450.00 price target on the stock. Piper Sandler raised their price objective on Cadence Design Systems from $319.00 to $325.00 and gave the company a “neutral” rating in a research report on Tuesday, April 28th. Berenberg Bank set a $440.00 target price on Cadence Design Systems in a research note on Wednesday, May 27th. KeyCorp increased their price target on shares of Cadence Design Systems from $405.00 to $425.00 and gave the company an “overweight” rating in a research report on Tuesday, April 28th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Cadence Design Systems in a report on Thursday, July 2nd. Thirteen 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.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $405.69.

Check Out Our Latest Report on CDNS

Cadence Design Systems Stock Up 0.0%

Shares of Cadence Design Systems stock opened at $332.82 on Tuesday. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.32. Cadence Design Systems has a 1 year low of $262.75 and a 1 year high of $416.69. The firm’s 50-day moving average is $373.04 and its two-hundred day moving average is $329.95. The stock has a market cap of $91.80 billion, a price-to-earnings ratio of 66.17, a PEG ratio of 3.79 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS – Get Free Report) last posted its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, beating the consensus estimate of $2.05 by $0.06. The business had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.58 billion. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The company’s quarterly revenue was up 24.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.65 EPS. 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. As a group, research analysts expect that Cadence Design Systems will post 6.39 earnings per share for the current fiscal year.

Insider Transactions at Cadence Design Systems

In related news, VP Paul Cunningham sold 2,000 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $391.00, for a total transaction of $782,000.00. Following the sale, the vice president directly owned 126,586 shares of the company’s stock, valued at approximately $49,495,126. This represents a 1.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 7,081 shares of the firm’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $393.91, for a total transaction of $2,789,276.71. Following the sale, the vice president owned 32,181 shares in the company, valued at approximately $12,676,417.71. This represents a 18.04% decrease in their position. 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. Over the last 90 days, insiders sold 145,557 shares of company stock worth $56,375,287. Insiders own 0.49% of the company’s stock.

Hedge Funds Weigh In On Cadence Design Systems

Institutional investors and hedge funds have recently modified their holdings of the business. Whipplewood Advisors LLC grew its holdings in Cadence Design Systems by 933.3% in the first 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. Brown Lisle Cummings Inc. increased its position in shares of Cadence Design Systems by 860.0% in the first quarter. Brown Lisle Cummings Inc. now owns 96 shares of the software maker’s stock valued at $27,000 after buying an additional 86 shares in the last quarter. University of Texas Texas AM Investment Management Co. acquired a new position in shares of Cadence Design Systems during the 4th quarter worth approximately $28,000. Swiss RE Ltd. acquired a new position in shares of Cadence Design Systems during the 4th quarter worth approximately $29,000. Finally, Lodestone Wealth Management LLC purchased a new position in shares of Cadence Design Systems during the 4th quarter valued at approximately $30,000. Hedge funds and other institutional investors own 84.85% of the company’s stock.

Cadence Design Systems News Summary

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

Positive Sentiment: Cadence exceeded second-quarter 2026 earnings expectations, reporting $2.11 in adjusted EPS versus the $2.05 consensus estimate. Revenue increased 24.2% year over year to $1.58 billion, supported by demand for AI and advanced-chip design tools. Cadence Q2 Earnings Top Estimates on AI Demand, Backlog Hits $8.1B
Positive Sentiment: Record backlog of approximately $8.1 billion provides visibility into future sales and was cited by analysts as evidence that agentic AI and broader semiconductor investment can extend Cadence’s growth. Cadence rises after Q2 beat as analysts highlight record backlog
Positive Sentiment: Management raised its full-year 2026 outlook to $8.05–$8.15 in EPS and issued third-quarter guidance of $2.01–$2.07, reinforcing confidence in continued demand.
Positive Sentiment: Several Wall Street firms remain constructive: Needham reiterated a Buy rating, while Rosenblatt raised its price target to $420. Baird, Bank of America and Piper Sandler analysts also anticipate further appreciation. Rosenblatt raises Cadence price target
Neutral Sentiment: The earnings call and related research suggest growth is broadening beyond AI, potentially supporting another earnings-driven advance if Cadence converts its backlog into revenue. Cadence earnings call signals AI-driven surge
Negative Sentiment: At roughly 54 times earnings, CDNS remains expensive, and some commentary warns that the share price already discounts years of strong execution. This rich valuation could limit upside or amplify pressure if growth slows. Cadence keeps winning, but the share price is years ahead

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.