Benchmark's above-consensus $450 target and the surge in EPS revisions create a favorable setup ahead of July 27 earnings. Traders should watch for a beat-and-raise catalyst that could trigger short covering given the 62% short ratio.
Price Chart
Executive Summary
Benchmark initiated coverage on Cadence Design Systems (CDNS) at Buy with a $450 price target, implying 21% upside from the current $371.50. The firm's 54% accuracy on 1,703 calls and 6% average return place it in the middle tier among analysts covering CDNS. The consensus is heavily bullish: 28 Buy, 3 Hold, 0 Sell across 31 analysts. The mean target is $391.18, median $390, high $470, low $275 — Benchmark's $450 is above the mean and median, signaling above-consensus conviction. Momentum is positive with 1 upgrade and 0 downgrades in the last 30 days. EPS estimates for the current quarter (ending July 2026) have seen 12 upward revisions in the past 7 days and 8 in 30 days, with no downward revisions. The next earnings report is due July 27, 2026, adding a near-term catalyst. Insider selling by EVP Teng Chin-Chi totaling ~$875K on June 22 is a mild contra-signal, but the strong upward EPS revision trend and Benchmark's bullish initiation outweigh it. The bottom line: Benchmark's above-consensus target and the positive estimate momentum make this a constructive entry point ahead of earnings.
Impact Score
Consensus & Targets
Of 31 analysts covering CDNS, 28 rate it Buy (9 Strong Buy, 19 Buy), 3 Hold, and 0 Sell — a 90% Buy ratio. The consensus is overwhelmingly bullish, and Benchmark's initiation aligns with that direction.
Current price: $371.50. Mean target: $391.18 (5.3% upside). Median: $390 (5.0% upside). High: $470 (26.5% upside). Low: $275 (26.0% downside). Benchmark's $450 target is 15% above the mean and 15.4% above the median, placing it in the top quartile of analyst targets.
Recent Analyst Activity
| Date | Firm | Action | Rating | Price Target |
|---|---|---|---|---|
| 2026-07-16 | Benchmark | initiate | Buy | $450.00 |
| 2026-07-14 | Rosenblatt | maintain | Buy | $410.00 |
| 2026-06-09 | Stifel | maintain | Buy | $432.00 |
| 2026-05-26 | Wells Fargo | maintain | Overweight | $425.00 |
| 2026-04-29 | Citigroup | maintain | Buy | $400.00 |
| 2026-04-28 | Wells Fargo | maintain | Overweight | $400.00 |
| 2026-04-28 | Keybanc | maintain | Overweight | $425.00 |
| 2026-04-28 | Rosenblatt | maintain | Buy | $375.00 |
| 2026-04-28 | Baird | maintain | Outperform | $385.00 |
| 2026-04-28 | Needham | reiterate | Buy | $400.00 |
In the last 30 days, CDNS has seen 1 upgrade (Benchmark's initiation) and 0 downgrades. EPS revisions are strongly positive: current quarter estimates have 12 upward revisions in 7 days and 8 in 30 days, with zero downward revisions. Next quarter (+1q) shows 2 upward and 6 downward revisions over 30 days, a slight mixed signal. Full-year 2026 estimates are stable with 1 up and 1 down revision.
Firm Track Record — Benchmark
Benchmark accuracy: 54% on 1703 calls | avg return: 6%
Industry benchmark: mean 51% ± 11%. Top tier: ≥61% (mean + 1σ). Based on 11 firms with ≥5 scored calls.
| Firm | Accuracy | Calls | Avg Return | vs Average |
|---|---|---|---|---|
| Piper Sandler | 83% | 5/6 | 2.6% | top tier |
| Loop Capital | 75% | 3/4 | 3.4% | top tier |
| B of A Securities | 75% | 3/4 | 13.2% | top tier |
| Rosenblatt | 70% | 7/10 | 5.7% | top tier |
| Mizuho | 67% | 4/6 | 7.5% | top tier |
| Oppenheimer | 67% | 2/3 | 7.4% | top tier |
| Keybanc | 60% | 3/5 | -0.4% | above average |
| JP Morgan | 50% | 2/4 | 5.9% | below average |
| Needham | 45% | 5/11 | 1.1% | below average |
| Baird | 44% | 4/9 | 0.8% | below average |
Benchmark has a 54% accuracy rate on 1,703 scored calls with a 6% average return, placing it in the middle tier. Top-tier firms covering CDNS include Piper Sandler (83% on 6 calls), Loop Capital (75% on 4), and B of A Securities (75% on 4). Below-average firms include Needham (45% on 11) and Baird (44% on 9). Benchmark's initiation is not from a top-tier firm, but its large sample size adds credibility.
Earnings Estimates
Next earnings: Jul 27, 2026
| Period | EPS Est. | EPS Range | Revenue | Revisions (7d) |
|---|---|---|---|---|
| 0q | $2.06 | $2.03 — $2.08 | $1.6B | ↑12 ↓0 |
| +1q | $1.93 | $1.79 — $2.08 | $1.5B | ↑2 ↓0 |
| 0y | $4.50 | $4.38 — $4.67 | $6.2B | ↑1 ↓0 |
| +1y | $9.40 | $8.71 — $9.91 | $7.0B | ↑1 ↓0 |
Cross-Platform Signals
Insider trades: EVP Teng Chin-Chi sold ~$875K worth of shares on June 22 in five transactions — a moderate bearish signal, but sales by a single executive are not strongly predictive per academic research. Congressional activity: Rep. Byron Donalds (R-FL) sold $1,001-$15,000 of CDNS on June 5 — a small, likely non-informative trade. Institutional changes: two funds added significantly (Empowered Funds +77.2%, Factory Mutual +32.4%), while three trimmed (OP Asset Management -34.5%, OneDigital -28.6%, Clearstead -40.5%). Short interest is elevated at 62.2% of off-exchange volume, suggesting bearish positioning that could fuel a squeeze if earnings beat. Overall, the insider sales are a mild contra-signal to the bullish initiation, but the strong EPS revision trend and institutional buying tilt the balance positive.
Investment Themes
Documents Analyzed
Report based on filing metadata.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 27, 2026 5w ago | Insider Cluster | $340.39 $326.70 | ▼ −4.02% | ▼ −4.53% | $351.35 (+3.22%) |
Aug 25, 2026 5w ago | Insider Cluster | $334.68 $294.90 | ▼ −11.89% | ▼ −13.09% | $351.35 (+4.98%) |
Aug 17, 2026 6w ago | Court Ruling | $323.47 $273.96 | ▼ −15.31% | ▼ −13.33% | $351.35 (+8.62%) |
Aug 13, 2026 7w ago | Court Ruling | $323.77 $289.37 | ▼ −10.62% | ▼ −8.88% | $351.35 (+8.52%) |
Aug 6, 2026 8w ago | Institutional Cluster | $338.42 $304.88 | ▼ −9.91% | ▼ −10.51% | $351.35 (+3.82%) |
Jul 28, 2026 9w ago | Court Ruling | $344.72 $331.90 | ▼ −3.72% | ▼ −7.10% | $351.35 (+1.92%) |
Jul 27, 2026 9w ago | 8-K | $344.72 $331.90 | ▼ −3.72% | ▼ −7.10% | $351.35 (+1.92%) |
Jul 24, 2026 10w ago | Insider Cluster | $326.24 $318.75 | ▲ +2.30% | ▲ +5.92% | $351.35 (−7.70%) |
Jul 20, 2026 10w ago | Court Ruling | $329.93 $323.47 | ▼ −1.96% | ▼ −6.08% | $351.35 (+6.49%) |
Jul 16, 2026 11w ago | ANALYST-UPGRADE | $364.65 $323.77 | ▼ −11.21% | ▼ −14.83% | $351.35 (−3.65%) |
US Market Status
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