Cadence Design Systems (NASDAQ:CDNS) Price Target Cut to $370.00 by Analysts at Morgan Stanley

Cadence Design Systems (NASDAQ:CDNS) had its price objective reduced by Morgan Stanley from $385.00 to $370.00 in a research note published on Wednesday morning, Marketbeat Ratings reports. They currently have an overweight rating on the software maker’s stock.

Several other brokerages have also commented on CDNS. KeyCorp reiterated an “overweight” rating and issued a $405.00 price target on shares of Cadence Design Systems in a research note on Tuesday, October 28th. Rosenblatt Securities upgraded shares of Cadence Design Systems from a “neutral” rating to a “buy” rating and upped their target price for the company from $335.00 to $360.00 in a report on Wednesday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Cadence Design Systems in a research report on Monday, December 29th. JPMorgan Chase & Co. boosted their price target on shares of Cadence Design Systems from $390.00 to $405.00 and gave the company an “overweight” rating in a research report on Tuesday, October 28th. Finally, Robert W. Baird upped their price objective on shares of Cadence Design Systems from $390.00 to $418.00 and gave the company an “outperform” rating in a research note on Tuesday, October 28th. Fifteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $376.50.

Cadence Design Systems Stock Performance

NASDAQ:CDNS opened at $305.01 on Wednesday. Cadence Design Systems has a 12 month low of $221.56 and a 12 month high of $376.45. The company has a debt-to-equity ratio of 0.48, a current ratio of 3.05 and a quick ratio of 2.84. The firm has a market capitalization of $83.02 billion, a PE ratio of 75.13, a price-to-earnings-growth ratio of 3.15 and a beta of 1.01. The business’s fifty day moving average price is $309.22 and its 200 day moving average price is $328.72.

Cadence Design Systems (NASDAQ:CDNS) last released its quarterly earnings data on Tuesday, February 17th. The software maker reported $1.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.91 by $0.08. Cadence Design Systems had a return on equity of 30.04% and a net margin of 20.93%.The business had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.42 billion. During the same period in the prior year, the firm posted $1.88 EPS. The business’s quarterly revenue was up 6.2% compared to the same quarter last year. 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. On average, sell-side analysts anticipate that Cadence Design Systems will post 5.41 earnings per share for the current fiscal year.

Insider Activity at Cadence Design Systems

In related news, VP Paul Cunningham sold 1,000 shares of the business’s 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 owned 95,137 shares in the company, valued at $28,073,977.33. The trade was a 1.04% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CFO John M. Wall sold 27,805 shares of the stock in a transaction that occurred on 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 directly owned 69,957 shares of the company’s stock, valued at $22,286,201.49. The trade was a 28.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 56,475 shares of company stock worth $18,505,486 in the last three months. Company insiders own 1.99% of the company’s stock.

Institutional Investors Weigh In On Cadence Design Systems

Several hedge funds have recently modified their holdings of the stock. Y.D. More Investments Ltd acquired a new position in Cadence Design Systems in the 3rd quarter valued at $26,000. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Cadence Design Systems in the 4th quarter worth $28,000. Caitlin John LLC purchased a new stake in shares of Cadence Design Systems in the third quarter valued at about $29,000. Swiss RE Ltd. acquired a new position in shares of Cadence Design Systems during the fourth quarter worth about $29,000. Finally, Lodestone Wealth Management LLC acquired a new position in shares of Cadence Design Systems during the fourth quarter worth about $30,000. 84.85% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Cadence Design Systems

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

• Positive Sentiment: Q4 beat and raised guidance — Cadence reported Q4 revenue and EPS above expectations and issued Q1 and full‑year FY2026 guidance well ahead of Street models (Q1 adj. EPS 1.89–1.95; FY EPS 8.05–8.15), underpinning the rally. Cadence Reports Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: AI and custom‑chip demand driving upside — Management emphasized AI-related demand across its portfolio and said the trend toward companies building custom chips should accelerate end market spending on Cadence tools. Cadence Design Systems Earnings Call Highlights AI Surge
• Positive Sentiment: Market coverage and analyst upgrades — Several firms raised/adjusted forecasts after the print (Needham reaffirmed buy with a high PT; Rosenblatt upgraded to buy), supporting investor confidence. These Analysts Revise Their Forecasts On Cadence Design Systems Following Q4 Results
• Neutral Sentiment: Mixed analyst target moves — Some shops trimmed price targets (Piper Sandler, Morgan Stanley nudged targets lower but kept constructive stances in places), creating a mix of support and caution. CDNS Price Target Commentary
• Neutral Sentiment: Options flow — Elevated put volume was reported (roughly 8,675 puts traded, ~172% above normal), which could reflect hedging or short‑term speculation rather than directional conviction.
• Negative Sentiment: Investor and insider signals — Data show notable insider selling activity and some analysts/notes (and commentary calling the stock “overpriced”) that remind investors valuation is high after the run. Cadence Design Systems (CDNS) stock rises on Q4 2025 Earnings
• Negative Sentiment: Contrarian takes and selective downgrades — Some research (e.g., Seeking Alpha commentary and an underperform from a firm earlier) argue the shares may be richly valued, which could cap upside if growth disappoints. Cadence: A Strong Company, But Overpriced

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.