Cadence Design Systems (NASDAQ:CDNS) Upgraded by Rosenblatt Securities to Buy Rating

Rosenblatt Securities upgraded shares of Cadence Design Systems (NASDAQ:CDNS) from a neutral rating to a buy rating in a research note released on Wednesday, MarketBeat Ratings reports. Rosenblatt Securities currently has $360.00 price target on the software maker’s stock, up from their previous price target of $335.00.

CDNS has been the topic of a number of other research reports. Weiss Ratings reiterated a “hold (c)” rating on shares of Cadence Design Systems in a research note on Monday, December 29th. KeyCorp restated an “overweight” rating and set a $405.00 target price on shares of Cadence Design Systems in a research note on Tuesday, October 28th. Wells Fargo & Company dropped their target price on Cadence Design Systems from $410.00 to $375.00 and set an “overweight” rating on the stock in a research report on Wednesday. JPMorgan Chase & Co. boosted their price target on Cadence Design Systems from $390.00 to $405.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 28th. Finally, Oppenheimer raised Cadence Design Systems from an “underperform” rating to a “market perform” rating and set a $275.00 target price on the stock in a research report on Monday, December 1st. Fifteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $376.50.

Cadence Design Systems Price Performance

Shares of Cadence Design Systems stock opened at $305.01 on Wednesday. The business’s fifty day moving average price is $309.22 and its 200 day moving average price is $328.72. Cadence Design Systems has a twelve month low of $221.56 and a twelve month high of $376.45. The company has a current ratio of 3.05, a quick ratio of 2.84 and a debt-to-equity ratio of 0.48. The stock has a market capitalization of $83.02 billion, a P/E ratio of 75.13, a PEG ratio of 3.15 and a beta of 1.01.

Cadence Design Systems (NASDAQ:CDNS) last released 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. 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 for the quarter, compared to analyst estimates of $1.42 billion. During the same period in the previous year, the company posted $1.88 EPS. The company’s 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. As a group, research analysts anticipate that Cadence Design Systems will post 5.41 earnings per share for the current year.

Insider Activity at Cadence Design Systems

In other news, Director Ita M. Brennan sold 180 shares of the stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $337.48, for a total value of $60,746.40. Following the completion of the transaction, the director directly owned 7,650 shares in the company, valued at $2,581,722. This trade represents a 2.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Paul Scannell sold 5,490 shares of the stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $339.43, for a total value of $1,863,470.70. Following the transaction, the vice president directly owned 20,321 shares of the company’s stock, valued at approximately $6,897,557.03. The trade was a 21.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 56,475 shares of company stock valued at $18,505,486. Company insiders own 1.99% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Y.D. More Investments Ltd acquired a new stake in Cadence Design Systems during the 3rd quarter worth about $26,000. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Cadence Design Systems in the fourth quarter worth approximately $28,000. Caitlin John LLC purchased a new stake in shares of Cadence Design Systems in the third quarter worth approximately $29,000. Swiss RE Ltd. acquired a new stake in shares of Cadence Design Systems during the fourth quarter worth approximately $29,000. Finally, Lodestone Wealth Management LLC purchased a new position in Cadence Design Systems during the fourth quarter valued at approximately $30,000. Institutional investors own 84.85% of the company’s stock.

Key Stories 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.