CDNS CADENCE DESIGN SYSTEMS INC

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Executive Summary

Rosenblatt upgraded CDNS to Buy from Neutral with a $360 price target, up from $335, as part of a 12-firm cluster on the stock. Rosenblatt has a 70% accuracy rate on 10 calls and average return of 5.7%, placing it among top-tier firms covering CDNS. The consensus is heavily bullish: 29 Buy/Strong Buy, 3 Hold, 0 Sell across 32 analysts. The mean price target is $383.94, median $387.50, with a high of $440 and low of $275; current price is $374.93, implying 2.4% upside to the mean. Rosenblatt's $360 target sits below the consensus mean, making this a relatively cautious upgrade. EPS revisions for the current quarter are flat over 7 days but up sharply from 30 days ago ($1.85 to $2.05), while next-year estimates have seen 11 upward revisions in the past week. Insider selling is notable: $19.2M from EVP Devgan and $766K from Teng on May 22, plus smaller sales from Scannell and Wall. Institutional activity is mixed — Norges Bank had both a new $1.35B position and an exit, while Two Sigma added 52.4% then trimmed 30.3%. Short interest is elevated at 57.7% of float. The upgrade from a top-tier firm adds credibility, but the below-consensus PT and insider selling temper the bullish signal. Bottom line: a quality upgrade from a high-accuracy firm, but the price target is below consensus and insiders are selling — traders should treat this as a modest positive, not a strong buy signal.

Impact Score

Consensus & Targets

Of 32 analysts covering CDNS, 9 rate it Strong Buy, 20 Buy, 3 Hold, 0 Sell, 0 Strong Sell — 90.6% bullish. The consensus is overwhelmingly positive, with only 3 hold ratings and no sell-side dissent.

Mean price target is $383.94, median $387.50, high $440, low $275. Current price $374.93 implies 2.4% upside to the mean. Rosenblatt's $360 target is 6.2% below the mean and 7.1% below the median, making it one of the more conservative bullish calls.

Recent Analyst Activity

No upgrades or downgrades in the past 30 days, but the 12-firm cluster includes multiple maintains and reiterates. EPS revisions are mixed: current quarter estimates unchanged over 7 days but up 11.2% from 30 days ago ($1.85 to $2.05). Next-year estimates saw 11 upward revisions in the past week vs 2 downward, indicating improving forward sentiment.

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 70% accuracy rate on 10 calls with an average return of 5.7%, placing it in the top tier among firms covering CDNS. The best-performing firm is B of A Securities (75% on 4 calls, 13.2% avg return); the worst is Wells Fargo (40% on 5 calls, -3.5% avg return). Rosenblatt's upgrade is from a credible source.

Earnings Estimates

Next earnings: Jul 27, 2026

Cross-Platform Signals

Insider selling is a notable contra-signal: $19.2M from EVP Devgan and $766K from Teng on May 22, plus $370K from Scannell and $143K from Wall. Congressional activity shows a small buy from Rep. Ro Khanna ($1K-$15K). Institutional moves are mixed — Norges Bank had both a new $1.35B position and an exit, while Two Sigma added then trimmed. Short interest is high at 57.7% of float, suggesting bearish positioning that could fuel a squeeze if the stock rallies.

Documents Analyzed

Report based on filing metadata.

US Market Status