Royal Bank of Canada Lowers Position in Cadence Design Systems, Inc. $CDNS

Royal Bank of Canada cut its position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS) by 35.0% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 596,115 shares of the software maker’s stock after selling 321,098 shares during the quarter. Royal Bank of Canada’s holdings in Cadence Design Systems were worth $165,642,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Empowered Funds LLC raised its holdings in Cadence Design Systems by 77.2% in the first quarter. Empowered Funds LLC now owns 38,948 shares of the software maker’s stock worth $10,822,000 after purchasing an additional 16,970 shares in the last quarter. Evelyn Partners Investment Management Services Ltd lifted its position in Cadence Design Systems by 1.1% during the first quarter. Evelyn Partners Investment Management Services Ltd now owns 4,341 shares of the software maker’s stock valued at $1,206,000 after buying an additional 49 shares during the period. KCM Investment Advisors LLC boosted its holdings in shares of Cadence Design Systems by 0.4% during the 1st quarter. KCM Investment Advisors LLC now owns 8,013 shares of the software maker’s stock valued at $2,227,000 after buying an additional 32 shares in the last quarter. Quantinno Capital Management LP boosted its holdings in shares of Cadence Design Systems by 21.6% during the 1st quarter. Quantinno Capital Management LP now owns 184,720 shares of the software maker’s stock valued at $51,328,000 after buying an additional 32,772 shares in the last quarter. Finally, Lazard Asset Management LLC grew its position in shares of Cadence Design Systems by 5.2% in the 1st quarter. Lazard Asset Management LLC now owns 896,325 shares of the software maker’s stock worth $249,062,000 after buying an additional 44,231 shares during the period. 84.85% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts recently issued reports on CDNS shares. Needham & Company LLC reiterated a “buy” rating and issued a $400.00 price target on shares of Cadence Design Systems in a research note on Tuesday. KeyCorp restated an “overweight” rating on shares of Cadence Design Systems in a report on Tuesday. Benchmark reaffirmed a “buy” rating on shares of Cadence Design Systems in a research note on Tuesday. Citigroup lifted their target price on shares of Cadence Design Systems from $400.00 to $420.00 and gave the company a “buy” rating in a report on Tuesday. Finally, Piper Sandler boosted their price target on Cadence Design Systems from $325.00 to $349.00 and gave the stock a “neutral” rating in a research report on Tuesday. Thirteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $405.69.

Key Stories Impacting Cadence Design Systems

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

• Positive Sentiment: Cadence exceeded second-quarter 2026 earnings expectations, reporting $2.11 in adjusted EPS versus the $2.05 consensus estimate. Revenue increased 24.2% year over year to $1.58 billion, supported by demand for AI and advanced-chip design tools. Cadence Q2 Earnings Top Estimates on AI Demand, Backlog Hits $8.1B
• Positive Sentiment: Record backlog of approximately $8.1 billion provides visibility into future sales and was cited by analysts as evidence that agentic AI and broader semiconductor investment can extend Cadence’s growth. Cadence rises after Q2 beat as analysts highlight record backlog
• Positive Sentiment: Management raised its full-year 2026 outlook to $8.05–$8.15 in EPS and issued third-quarter guidance of $2.01–$2.07, reinforcing confidence in continued demand.
• Positive Sentiment: Several Wall Street firms remain constructive: Needham reiterated a Buy rating, while Rosenblatt raised its price target to $420. Baird, Bank of America and Piper Sandler analysts also anticipate further appreciation. Rosenblatt raises Cadence price target
• Neutral Sentiment: The earnings call and related research suggest growth is broadening beyond AI, potentially supporting another earnings-driven advance if Cadence converts its backlog into revenue. Cadence earnings call signals AI-driven surge
• Negative Sentiment: At roughly 54 times earnings, CDNS remains expensive, and some commentary warns that the share price already discounts years of strong execution. This rich valuation could limit upside or amplify pressure if growth slows. Cadence keeps winning, but the share price is years ahead

Insider Transactions at Cadence Design Systems

In related news, CEO Anirudh Devgan sold 51,887 shares of the firm’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $370.00, for a total transaction of $19,198,190.00. Following the completion of the sale, the chief executive officer owned 303,525 shares of the company’s stock, valued at $112,304,250. This trade represents a 14.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Wall sold 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $348.71, for a total transaction of $1,743,550.00. Following the completion of the transaction, the chief financial officer owned 81,875 shares of the company’s stock, valued at approximately $28,550,631.25. The trade was a 5.76% 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. In the last quarter, insiders have sold 145,557 shares of company stock valued at $56,375,287. 0.49% of the stock is currently owned by insiders.

Cadence Design Systems Price Performance

Shares of NASDAQ:CDNS opened at $332.82 on Friday. The business has a fifty day moving average price of $373.04 and a 200-day moving average price of $329.95. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.32. The company has a market capitalization of $91.80 billion, a PE ratio of 66.17, a PEG ratio of 3.79 and a beta of 1.15. Cadence Design Systems, Inc. has a 1-year low of $262.75 and a 1-year high of $416.69.

Cadence Design Systems (NASDAQ:CDNS) last announced its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.05 by $0.06. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The company had revenue of $1.58 billion for the quarter, compared to analysts’ expectations of $1.58 billion. During the same quarter in the previous year, the business posted $1.65 EPS. Cadence Design Systems’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, equities analysts expect that Cadence Design Systems, Inc. will post 6.39 EPS for the current fiscal year.

Cadence Design Systems Profile

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.