Cadence Design Systems (NASDAQ:CDNS) Earns Buy Rating from Rosenblatt Securities

Cadence Design Systems (NASDAQ:CDNS)‘s stock had its “buy” rating reaffirmed by analysts at Rosenblatt Securities in a research report issued to clients and investors on Friday,Benzinga reports. They currently have a $360.00 price objective on the software maker’s stock. Rosenblatt Securities’ target price indicates a potential upside of 8.14% from the stock’s current price.

Several other brokerages also recently weighed in on CDNS. Wells Fargo & Company cut their target price on shares of Cadence Design Systems from $410.00 to $375.00 and set an “overweight” rating on the stock in a research note on Wednesday, February 18th. Stifel Nicolaus set a $395.00 target price on shares of Cadence Design Systems in a research note on Wednesday, February 18th. Piper Sandler cut their target price on shares of Cadence Design Systems from $355.00 to $319.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 18th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Cadence Design Systems in a research note on Monday, December 29th. Finally, Needham & Company LLC upped their target price on shares of Cadence Design Systems from $390.00 to $400.00 and gave the stock a “buy” rating in a research note on Monday, April 20th. Fifteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, Cadence Design Systems has a consensus rating of “Moderate Buy” and a consensus price target of $377.06.

Cadence Design Systems Price Performance

Cadence Design Systems stock opened at $332.89 on Friday. The company’s 50 day simple moving average is $293.73 and its 200-day simple moving average is $309.42. The company has a market capitalization of $91.91 billion, a price-to-earnings ratio of 81.99, a price-to-earnings-growth ratio of 3.77 and a beta of 1.04. Cadence Design Systems has a 1 year low of $262.75 and a 1 year high of $376.45. The company has a debt-to-equity ratio of 0.45, a quick ratio of 2.67 and a current ratio of 2.86.

Cadence Design Systems (NASDAQ:CDNS) last released its quarterly earnings results on Tuesday, February 17th. The software maker reported $1.99 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.91 by $0.08. The business had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.42 billion. Cadence Design Systems had a net margin of 20.93% and a return on equity of 29.34%. The business’s revenue was up 6.2% on a year-over-year basis. During the same period in the previous year, the firm earned $1.88 EPS. 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. As a group, equities research analysts expect that Cadence Design Systems will post 6.51 earnings per share for the current year.

Insider Buying and Selling

In other Cadence Design Systems news, Director Ita M. Brennan sold 180 shares of the business’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $295.03, for a total transaction of $53,105.40. Following the completion of the transaction, the director owned 7,470 shares in the company, valued at $2,203,874.10. The trade was a 2.35% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO John M. Wall sold 21,500 shares of the business’s stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $309.45, for a total transaction of $6,653,175.00. Following the transaction, the chief financial officer owned 86,875 shares of the company’s stock, valued at $26,883,468.75. This trade represents a 19.84% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 24,680 shares of company stock valued at $7,579,340 in the last ninety days. Company insiders own 0.49% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Y.D. More Investments Ltd acquired a new position in Cadence Design Systems during the 3rd quarter worth approximately $26,000. Caitlin John LLC acquired a new position in Cadence Design Systems during the 3rd quarter worth approximately $29,000. University of Texas Texas AM Investment Management Co. acquired a new position in Cadence Design Systems during the 4th quarter worth approximately $28,000. Imprint Wealth LLC acquired a new position in Cadence Design Systems during the 3rd quarter worth approximately $31,000. Finally, Swiss RE Ltd. acquired a new position in Cadence Design Systems during the 4th quarter worth approximately $29,000. Institutional investors and hedge funds own 84.85% of the company’s stock.

Trending Headlines about Cadence Design Systems

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

• Positive Sentiment: Expanded TSMC alliance accelerates AI-focused chip design — A Cadence–TSMC tie-up targets advanced nodes, silicon-proven IP and AI-driven tools that should increase Cadence relevance to AI chip customers and support longer-term revenue growth. Cadence Expands TSMC Alliance
• Positive Sentiment: Deeper NVIDIA collaboration strengthens AI tool stack — Expanded Cadence–NVIDIA work on agentic AI and digital-twin solutions increases product stickiness with a major AI infrastructure partner, supporting higher-value, enterprise deployments. Cadence And NVIDIA Deepen AI Partnership
• Positive Sentiment: Google partnership expands cloud and agent integration — A tie-up with Google to optimize Cadence’s ChipStack AI Super-Agent on Gemini/Google Cloud broadens go-to-market channels and enterprise adoption potential. Alphabet Partners with Cadence
• Positive Sentiment: Analyst backing — Rosenblatt reaffirmed a “buy” rating and set a $360 price target, offering visible upside from current levels and adding confidence for momentum buyers. Analyst Note from Benzinga
• Positive Sentiment: Short interest trend mostly eased — April 15 data show a meaningful drop in short interest (~18% down to ~5.91M shares, ~2.2% of float), which reduces immediate downside pressure from short covering events. (Internal data)
• Neutral Sentiment: Earnings preview/expectations mixed — Pre-earnings commentary highlights strong AI-driven demand and backlog but flags macro and competitive risks; Rosenblatt expects a revenue beat but a potential EPS miss, implying the print could spark volatility either way. Earnings Preview
• Neutral Sentiment: Conflicting/erroneous short-interest report — One April data entry shows zero short interest (likely a reporting error), so treat intraday short-interest signals as uncertain until official filings settle. (Internal data)
• Negative Sentiment: Recent intraday sell-off shows investor caution — CDNS fell ~5% on April 23, indicating profit-taking or pre-earnings risk that could continue if the upcoming quarterly report disappoints or guidance is conservative. Intraday Drop Coverage

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.