Cadence Design Systems (NASDAQ:CDNS) Receives “Neutral” Rating from Rosenblatt Securities

Rosenblatt Securities reissued their neutral rating on shares of Cadence Design Systems (NASDAQ:CDNS) in a research report sent to investors on Tuesday morning,Benzinga reports. They currently have a $335.00 price objective on the software maker’s stock.

CDNS has been the topic of several other reports. JPMorgan Chase & Co. raised their price objective on shares of Cadence Design Systems from $390.00 to $405.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 28th. KeyCorp reiterated an “overweight” rating and set a $405.00 target price on shares of Cadence Design Systems in a research note on Tuesday, October 28th. Needham & Company LLC reissued a “buy” rating and set a $390.00 price target on shares of Cadence Design Systems in a report on Monday, December 22nd. Citigroup began coverage on Cadence Design Systems in a research report on Monday, November 24th. They issued a “buy” rating and a $385.00 price target on the stock. Finally, Wolfe Research reaffirmed an “outperform” rating and set a $385.00 price objective on shares of Cadence Design Systems in a research note on Tuesday, October 28th. Thirteen analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Cadence Design Systems presently has an average rating of “Moderate Buy” and an average target price of $379.59.

Cadence Design Systems Trading Down 5.3%

CDNS opened at $283.46 on Tuesday. The company has a quick ratio of 2.84, a current ratio of 3.05 and a debt-to-equity ratio of 0.48. Cadence Design Systems has a 52 week low of $221.56 and a 52 week high of $376.45. The business’s 50 day moving average is $309.88 and its two-hundred day moving average is $328.89. The firm has a market cap of $77.16 billion, a price-to-earnings ratio of 73.06, a price-to-earnings-growth ratio of 3.33 and a beta of 1.01.

Cadence Design Systems (NASDAQ:CDNS) last posted its quarterly earnings data on Tuesday, February 17th. The software maker reported $1.99 earnings per share for the quarter, beating the consensus estimate of $1.91 by $0.08. The business had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.42 billion. Cadence Design Systems had a return on equity of 30.13% and a net margin of 20.35%.The company’s revenue was up 6.2% compared to the same quarter last year. During the same period in the prior year, the company earned $1.88 earnings per share. 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, research analysts predict that Cadence Design Systems will post 5.41 EPS for the current year.

Insider Buying and Selling

In other news, CEO Anirudh Devgan sold 20,000 shares of the stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $340.00, for a total value of $6,800,000.00. Following the completion of the transaction, the chief executive officer owned 195,844 shares in the company, valued at $66,586,960. This trade represents a 9.27% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Paul Cunningham sold 1,000 shares of the firm’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $295.09, for a total transaction of $295,090.00. Following the completion of the sale, the vice president owned 95,137 shares of the company’s stock, valued at $28,073,977.33. This trade represents a 1.04% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 56,475 shares of company stock valued at $18,505,486 in the last quarter. Corporate insiders own 0.37% of the company’s stock.

Institutional Investors Weigh In On Cadence Design Systems

A number of institutional investors and hedge funds have recently modified their holdings of the company. Peterson Wealth Services raised its holdings in Cadence Design Systems by 1,501.3% during the third quarter. Peterson Wealth Services now owns 187,115 shares of the software maker’s stock valued at $65,726,000 after buying an additional 175,430 shares in the last quarter. Pacer Advisors Inc. increased its holdings in shares of Cadence Design Systems by 83.3% during the 3rd quarter. Pacer Advisors Inc. now owns 182,348 shares of the software maker’s stock valued at $64,052,000 after acquiring an additional 82,856 shares during the last quarter. Stanley Laman Group Ltd. bought a new position in shares of Cadence Design Systems in the 3rd quarter valued at approximately $6,177,000. Patton Fund Management Inc. lifted its holdings in Cadence Design Systems by 1,743.7% in the 3rd quarter. Patton Fund Management Inc. now owns 13,994 shares of the software maker’s stock worth $4,916,000 after purchasing an additional 13,235 shares during the last quarter. Finally, Westerkirk Capital Inc. bought a new stake in Cadence Design Systems during the second quarter worth approximately $2,024,000. 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: Q4 results: Cadence beat EPS estimates and showed revenue growth (revenue $1.44B, +6.2% Y/Y; EPS $1.99 vs. $1.90 consensus). The quarter also featured stronger gross profit, operating cash flow and higher cash balances—fundamentals that support longer‑term growth expectations. Cadence Design Systems (CDNS) Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Aggressive forward guidance: Management set FY2026 EPS guidance of $8.05–8.15 and Q1 FY2026 EPS of $1.890–1.950, both well above sell‑side consensus (FY consensus ~5.45; Q1 consensus ~1.74). That upside to guidance is material and could support higher valuation if sustained. (Company guidance release)
• Neutral Sentiment: Company press release: Full financial results and conference call are available; investors will parse the call for color on AI-driven demand, backlog, and customer cadence to judge sustainability of the elevated guidance. Cadence Reports Fourth Quarter and Fiscal Year 2025 Financial Results
• Neutral Sentiment: Analyst coverage is mixed: several firms maintain buy/overweight ratings and high price targets (median target cited ~$390), while some firms are cautious; Rosenblatt reaffirmed a neutral rating with a $335 PT. These divergent views leave near‑term reaction driven by guidance verification. Rosenblatt neutral rating
• Negative Sentiment: Insider selling and institutional reductions: recent filings and data show many insider sales (multiple senior execs) and large institutional trims (e.g., UBS, BlackRock reduced holdings materially), which can pressure the stock and signal profit‑taking. Quiver Quant: Q4 results, insider and institutional activity
• Negative Sentiment: Valuation and modest quarter-over-quarter growth: despite the beat, revenue growth was single‑digit (6.2% Y/Y) and the stock trades at a high multiple (PE ~73), which can amplify downside if investors doubt the sustainability of the lofty guidance. Zacks: Key metrics vs. estimates

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.