Cadence Design Systems (NASDAQ:CDNS) Share Price Breaks Above 50-Day Moving Average – Here’s What Happened

Posted by Geri Gentry on Oct 27th, 2026

Cadence Design Systems, Inc. (NASDAQ:CDNS – Get Free Report)’s share price crossed above its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $318.83 and traded as high as $331.65. Cadence Design Systems shares last traded at $322.17, with a volume of 4,476,603 shares trading hands.

Key Cadence Design Systems News

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

Positive Sentiment: Beat on earnings and revenue: Cadence reported third-quarter adjusted earnings of $2.11 per share, exceeding the $2.04-$2.05 consensus range, while revenue of $1.63 billion topped estimates of approximately $1.61 billion. Earnings also increased from $1.93 per share a year earlier. Cadence Design Systems Tops Q3 Earnings and Revenue Estimates
Positive Sentiment: Full-year outlook raised again: Management increased its fiscal 2026 guidance, reinforcing expectations for roughly 19% year-over-year revenue growth. Backlog reached approximately $8.2 billion, providing visibility into future demand. Cadence increases full-year fiscal 2026 guidance as backlog builds to $8.2B
Positive Sentiment: AI product momentum: Cadence launched Nvidia-backed AI models that chipmakers can run internally, expanding its role in semiconductor design and potentially supporting demand for its electronic-design automation tools. Cadence unveils Nvidia-backed AI models that chipmakers can run in-house
Positive Sentiment: Expanded capital return: Cadence’s board authorized an additional $2.5 billion for share repurchases, which could support per-share earnings and signal confidence in the company’s cash-generation outlook. Cadence Design expands share repurchase authorization
Neutral Sentiment: Although CDNS increased, it underperformed several industry peers, suggesting that some of the positive earnings news may already have been reflected in the share price. Cadence stock underperforms competitors despite gains
Negative Sentiment: Valuation and insider selling remain risks: With a reported P/E ratio above 64, expectations are high. Separate data also showed extensive insider selling and no reported insider purchases over the past six months, which could weigh on sentiment.

Analysts Set New Price Targets

Several analysts recently weighed in on the stock. Rosenblatt Securities reiterated a “buy” rating and issued a $420.00 price target on shares of Cadence Design Systems in a report on Friday. The Goldman Sachs Group lifted their price target on shares of Cadence Design Systems from $410.00 to $470.00 and gave the company a “buy” rating in a research report on Monday, July 13th. Wall Street Zen downgraded Cadence Design Systems from a “buy” rating to a “hold” rating in a report on Tuesday, October 20th. Needham & Company LLC reiterated a “buy” rating and issued a $400.00 price target on shares of Cadence Design Systems in a research note on Tuesday, July 28th. Finally, Morgan Stanley reissued an “overweight” rating and set a $400.00 price objective (up from $370.00) on shares of Cadence Design Systems in a research report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Cadence Design Systems presently has an average rating of “Moderate Buy” and a consensus target price of $404.14.

Check Out Our Latest Research Report on Cadence Design Systems

Cadence Design Systems Price Performance

The firm has a 50-day moving average of $318.83 and a 200-day moving average of $326.92. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.53 and a current ratio of 1.74. The firm has a market capitalization of $88.72 billion, a P/E ratio of 64.05, a PEG ratio of 3.38 and a beta of 1.13.

Cadence Design Systems (NASDAQ:CDNS – Get Free Report) last posted its earnings results on Monday, October 26th. The software maker reported $2.11 EPS for the quarter, topping analysts’ consensus estimates of $2.05 by $0.06. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%. The business had revenue of $1.63 billion during the quarter, compared to analyst estimates of $1.61 billion. During the same quarter last year, the company earned $1.93 EPS. The company’s quarterly revenue was up 22.0% compared to the same quarter last year. As a group, analysts predict that Cadence Design Systems, Inc. will post 6.42 EPS for the current year.

Insiders Place Their Bets

In related news, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of Cadence Design Systems stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $350.07, for a total value of $437,587.50. Following the completion of the sale, the director directly owned 39,544 shares in the company, valued at approximately $13,843,168.08. This trade represents a 3.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 280 shares of the business’s stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $339.00, for a total value of $94,920.00. Following the completion of the transaction, the vice president directly owned 31,720 shares of the company’s stock, valued at approximately $10,753,080. This trade represents a 0.88% 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 three months, insiders sold 8,960 shares of company stock valued at $2,834,139. 0.49% of the stock is currently owned by corporate insiders.

Institutional Trading of Cadence Design Systems

A number of large investors have recently made changes to their positions in the stock. Van ECK Associates Corp raised its holdings in shares of Cadence Design Systems by 21.8% during the second quarter. Van ECK Associates Corp now owns 4,889,765 shares of the software maker’s stock valued at $1,835,227,000 after purchasing an additional 874,392 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Cadence Design Systems by 1.5% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,385,655 shares of the software maker’s stock valued at $1,270,704,000 after acquiring an additional 48,937 shares during the last quarter. Assenagon Asset Management S.A. lifted its stake in Cadence Design Systems by 1,097.5% in the 3rd quarter. Assenagon Asset Management S.A. now owns 2,818,141 shares of the software maker’s stock worth $930,522,000 after purchasing an additional 2,582,812 shares in the last quarter. Legal & General Group Plc purchased a new stake in Cadence Design Systems in the 2nd quarter worth $702,615,000. Finally, Jupiter Topco LLC bought a new position in shares of Cadence Design Systems during the 2nd quarter valued at about $688,746,000. 84.85% of the stock is currently owned by institutional investors.

Cadence Design Systems Company Profile

(Get Free Report)

Cadence Design Systems, Inc develops computational software, hardware, and semiconductor intellectual property used to design and verify electronic systems and integrated circuits. Its electronic design automation (EDA) solutions support chip development across areas such as digital and custom IC design, functional verification, emulation, prototyping, and system analysis.

The company also provides semiconductor IP, including processor cores, interconnect technologies, memory interfaces, and other building blocks that help customers develop complex chips.