CDNS CADENCE DESIGN SYSTEMS INC

Price Chart

Executive Summary

Rosenblatt Securities upgraded CDNS from Neutral to Buy on February 18 with a $360 price target, up from $335. The move is part of a 12-firm analyst cluster that acted on the stock. Rosenblatt has a 70% accuracy rate on 10 CDNS calls, placing it in the top tier among covering firms, though its overall firm-level accuracy is 54% on 996 calls. The consensus is heavily bullish: 87.5% of 32 analysts rate the stock Buy or Strong Buy, with a mean price target of $380.01, implying 15.3% upside from the current $329.59. However, Rosenblatt's $360 target is below both the mean and median, making it a less aggressive bull. Momentum is flat—no upgrades or downgrades in 30 days—while EPS revisions are mixed: current quarter estimates rose 11.9% but full-year estimates declined 6.4%. Insider selling is pronounced, with $6.65M sold by the President in April and no insider buys. Short interest stands at 910,867 shares with a high short ratio of 63.4%, diverging from the bullish analyst consensus. Bottom line: Rosenblatt's upgrade adds incremental bullish weight but lacks contrarian force, and the insider selling/short interest signal caution.

Impact Score

Consensus & Targets

Of 32 analysts covering CDNS, 9 rate it Strong Buy, 19 rate Buy, and 4 rate Hold. That is 87.5% Buy/Strong Buy and 12.5% Hold, with no Sell or Strong Sell ratings. The consensus is overwhelmingly bullish, and Rosenblatt's upgrade aligns with this dominant sentiment.

The consensus mean price target is $380.01 with a median of $390. The high target is $425 and the low is $275. At $329.59, CDNS trades 15.3% below the mean. Rosenblatt's $360 target sits 5.3% below the median and 8.3% below the mean, making it one of the less aggressive bulls among the 27 analysts with targets.

Recent Analyst Activity

In the past 30 days, there have been 0 upgrades and 0 downgrades on CDNS; most firms maintained their ratings. EPS revisions are mixed: current-year estimates were revised down 6.4% over 30 days (from $4.795 to $4.489), but current-quarter estimates rose 11.9% (from $1.836 to $2.054). Next-quarter and next-year estimates saw minor downward revisions. The net picture shows near-term optimism but tempered longer-term views.

Firm Track Record — Rosenblatt

Rosenblatt accuracy: 54% on 996 calls | avg return: 8.5%

Industry benchmark: mean 51% ± 11%. Top tier: ≥61% (mean + 1σ). Based on 11 firms with ≥5 scored calls.

Rosenblatt has a 54% accuracy rate on 996 rated stocks overall, with an average return of 8.5% per call. On CDNS specifically, Rosenblatt is 7 correct out of 10 calls (70% accuracy), placing it in the top tier among covering firms. The best firm on CDNS is Piper Sandler (83% accuracy on 6 calls) and the worst is Wells Fargo (40% on 5 calls). Rosenblatt's CDNS record is solid but not best-in-class.

Earnings Estimates

Next earnings: Jul 27, 2026

Cross-Platform Signals

Insider trading shows five consecutive sells over the past three months, including a $6.65M sale by President John Wall on April 16—no insider buys. Institutional activity is mixed: Norges Bank reported both a new $1.35B position and a complete exit (likely filing lags). Two Sigma added 52.4% then trimmed 30.3%. Short interest is 910,867 shares with a short ratio of 63.4% (elevated). This divergence between analyst bullishness and insider selling/short interest is a cautionary signal.

Documents Analyzed

Report based on filing metadata.

US Market Status