Cadence Design Systems Sees Unusually Large Options Volume (NASDAQ:CDNS)

Cadence Design Systems, Inc. (NASDAQ:CDNS) was the recipient of some unusual options trading on Wednesday. Investors purchased 8,675 put options on the stock. This is an increase of 172% compared to the average daily volume of 3,187 put options.

More Cadence Design Systems News

Here are the key news stories impacting Cadence Design Systems this week:

• Positive Sentiment: Q4 beat and very strong guidance: Cadence reported Q4 revenue and EPS above estimates and issued FY‑2026 EPS guidance (8.05–8.15) and Q1 guidance above Street expectations — a major fundamental positive that supports longer‑term growth expectations tied to AI demand. Business Wire: Q4 Results
• Positive Sentiment: Rosenblatt upgraded CDNS to Buy and raised its PT to $360, signaling confidence from some shops that the stock still has upside after the print. Benzinga: Rosenblatt Upgrade
• Positive Sentiment: Needham reaffirmed its Buy rating and maintains a $390 price target, the sort of bullish analyst backing that can support a recovery if sentiment stabilizes. Benzinga: Needham Reaffirmed
• Neutral Sentiment: Morgan Stanley trimmed its price target (from $385 to $370) but kept an Overweight call — a mild recalibration rather than a sell signal. The Fly: Morgan Stanley PT Change
• Neutral Sentiment: Market roundup: multiple firms revised models post‑earnings (some higher, some lower); analyst consensus and price‑target dispersion remain wide, which increases short‑term volatility but doesn’t change the strong forward revenue/EPS story. Benzinga: Analyst Revisions
• Negative Sentiment: Piper Sandler cut its price target to $319 (neutral rating), which is a downward signal that can pressure the stock given multiple mixed PT moves today. Benzinga: Piper Sandler PT Cut
• Negative Sentiment: Notable insider and institutional selling highlighted in data feeds (large sales by several insiders and big fund position trims) can amplify downside as some holders lock gains after the strong print. QuiverQuant: Insider & Institutional Activity

Analyst Ratings Changes

CDNS has been the subject of several analyst reports. Robert W. Baird raised their target price on Cadence Design Systems from $390.00 to $418.00 and gave the stock an “outperform” rating in a research note on Tuesday, October 28th. Morgan Stanley cut their price objective on shares of Cadence Design Systems from $385.00 to $370.00 and set an “overweight” rating for the company in a research report on Wednesday. Rosenblatt Securities upgraded shares of Cadence Design Systems from a “neutral” rating to a “buy” rating and increased their target price for the stock from $335.00 to $360.00 in a research note on Wednesday. Needham & Company LLC reissued a “buy” rating and issued a $390.00 price target on shares of Cadence Design Systems in a report on Wednesday. Finally, Citigroup assumed coverage on shares of Cadence Design Systems in a report on Monday, November 24th. They issued a “buy” rating and a $385.00 price target on the stock. Fifteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $376.50.

Insider Activity at Cadence Design Systems

In other news, VP Paul Cunningham sold 1,000 shares of the stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $295.09, for a total transaction of $295,090.00. Following the completion of the transaction, the vice president owned 95,137 shares in the company, valued at approximately $28,073,977.33. This represents a 1.04% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Anirudh Devgan sold 20,000 shares of Cadence Design Systems stock in a transaction dated Friday, December 5th. The stock was sold at an average price of $340.00, for a total value of $6,800,000.00. Following the completion of the sale, the chief executive officer directly owned 195,844 shares of the company’s stock, valued at approximately $66,586,960. This trade represents a 9.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 56,475 shares of company stock worth $18,505,486. 0.37% of the stock is owned by company insiders.

Institutional Trading of Cadence Design Systems

Several institutional investors have recently added to or reduced their stakes in CDNS. Brighton Jones LLC increased its holdings in Cadence Design Systems by 80.2% during the 4th quarter. Brighton Jones LLC now owns 1,519 shares of the software maker’s stock valued at $456,000 after purchasing an additional 676 shares during the period. Integrated Wealth Concepts LLC grew its position in shares of Cadence Design Systems by 3.8% in the 1st quarter. Integrated Wealth Concepts LLC now owns 2,203 shares of the software maker’s stock worth $560,000 after buying an additional 80 shares during the last quarter. Harbour Investments Inc. increased its stake in shares of Cadence Design Systems by 17.8% during the second quarter. Harbour Investments Inc. now owns 358 shares of the software maker’s stock valued at $110,000 after buying an additional 54 shares during the period. Mutual Advisors LLC increased its stake in shares of Cadence Design Systems by 6.5% during the second quarter. Mutual Advisors LLC now owns 1,223 shares of the software maker’s stock valued at $406,000 after buying an additional 75 shares during the period. Finally, Koshinski Asset Management Inc. bought a new position in shares of Cadence Design Systems during the second quarter valued at approximately $208,000. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Cadence Design Systems Price Performance

Shares of NASDAQ CDNS traded up $23.87 during mid-day trading on Wednesday, reaching $307.33. 1,146,605 shares of the company were exchanged, compared to its average volume of 2,494,819. Cadence Design Systems has a 52 week low of $221.56 and a 52 week high of $376.45. The company’s 50 day moving average price is $309.88 and its 200 day moving average price is $328.89. The stock has a market capitalization of $83.66 billion, a PE ratio of 79.21, a PEG ratio of 3.33 and a beta of 1.01. 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 (NASDAQ:CDNS) last released its quarterly earnings results on Tuesday, February 17th. The software maker reported $1.99 earnings per share for the quarter, beating analysts’ consensus estimates of $1.91 by $0.08. Cadence Design Systems had a return on equity of 30.13% and a net margin of 20.35%.The business had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.42 billion. During the same quarter last year, the business posted $1.88 earnings per share. The company’s revenue for the quarter was up 6.2% on a year-over-year basis. 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. Sell-side analysts forecast that Cadence Design Systems will post 5.41 earnings per share for the current fiscal year.

About Cadence Design Systems

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.