Renaissance Technologies LLC Acquires New Holdings in Cadence Design Systems, Inc. $CDNS

Renaissance Technologies LLC bought a new position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS) during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 160,520 shares of the software maker’s stock, valued at approximately $44,604,000.

A number of other institutional investors have also recently added to or reduced their stakes in CDNS. Whipplewood Advisors LLC raised its stake in shares of Cadence Design Systems by 933.3% during the first quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker’s stock valued at $26,000 after acquiring an additional 84 shares during the last quarter. Brown Lisle Cummings Inc. lifted its holdings in shares of Cadence Design Systems by 860.0% during the first quarter. Brown Lisle Cummings Inc. now owns 96 shares of the software maker’s stock worth $27,000 after purchasing an additional 86 shares during the period. University of Texas Texas AM Investment Management Co. bought a new stake in shares of Cadence Design Systems in the fourth quarter worth $28,000. Swiss RE Ltd. bought a new stake in shares of Cadence Design Systems in the fourth quarter worth $29,000. Finally, Lodestone Wealth Management LLC acquired a new stake in Cadence Design Systems in the fourth quarter valued at $30,000. 84.85% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research analysts recently issued reports on CDNS shares. Citigroup raised their target price on Cadence Design Systems from $385.00 to $400.00 and gave the stock a “buy” rating in a research report on Wednesday, April 29th. Weiss Ratings reiterated a “hold (c)” rating on shares of Cadence Design Systems in a research report on Thursday, July 2nd. Benchmark began coverage on Cadence Design Systems in a research note on Wednesday, July 15th. They issued a “buy” rating and a $450.00 price target for the company. Rosenblatt Securities raised their price objective on Cadence Design Systems from $375.00 to $410.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Finally, Stifel Nicolaus lifted their price objective on Cadence Design Systems from $395.00 to $432.00 and gave the stock a “buy” rating in a research note on Tuesday, June 9th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $393.65.

Insiders Place Their Bets

In other Cadence Design Systems news, CEO Anirudh Devgan sold 25,005 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $415.00, for a total value of $10,377,075.00. Following the transaction, the chief executive officer directly owned 253,519 shares of the company’s stock, valued at approximately $105,210,385. The trade was a 8.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita M. Brennan sold 180 shares of the stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $387.45, for a total value of $69,741.00. Following the transaction, the director owned 8,004 shares in the company, valued at $3,101,149.80. The trade was a 2.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 157,057 shares of company stock valued at $60,272,277 in the last 90 days. Company insiders own 0.49% 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: Cadence reported second-quarter adjusted earnings of $2.11 per share, exceeding the $2.05 consensus estimate and rising from $1.65 a year earlier. Revenue was $1.58 billion, in line with expectations. Cadence Design Systems Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company raised its full-year 2026 outlook, projecting earnings of $8.05-$8.15 per share and revenue of approximately $6.3 billion. The higher forecast indicates management expects continued strength in AI and high-performance computing-related demand. Cadence Raises Annual Forecasts as Demand Booms for AI Chip Design
• Positive Sentiment: Third-quarter 2026 EPS guidance of $2.01-$2.07 was above the reported consensus estimate of $1.84, reinforcing expectations for near-term earnings momentum. Cadence Design Systems Beats Q2 Estimates and Raises 2026 Outlook
• Neutral Sentiment: Cadence’s operating metrics remain solid, including a 28.44% return on equity and 21.18% net margin. The shares remain well above their 52-week low but below the 52-week high, suggesting investors are weighing strong growth against elevated expectations.
• Negative Sentiment: At roughly 79 times earnings and a PEG ratio near 3.9, CDNS trades at a demanding valuation. Any slowdown in AI-related spending or failure to exceed the upgraded forecasts could increase downside risk.

Cadence Design Systems Stock Performance

Shares of Cadence Design Systems stock opened at $338.61 on Tuesday. The business has a 50-day moving average price of $373.77 and a two-hundred day moving average price of $329.63. Cadence Design Systems, Inc. has a 1-year low of $262.75 and a 1-year high of $416.69. The company has a current ratio of 1.47, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38. The company has a market cap of $93.40 billion, a P/E ratio of 78.93, a PEG ratio of 3.86 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS) last announced its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.05 by $0.06. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The company had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.58 billion. During the same period in the previous year, the business earned $1.65 EPS. The firm’s revenue was up 24.2% compared to the same quarter last year. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS. As a group, analysts anticipate that Cadence Design Systems, Inc. will post 6.23 EPS for the current 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.