2,180 Cadence Design Systems, Inc. $CDNS Shares Acquired by Sumitomo Mitsui DS Asset Management Company Ltd

Sumitomo Mitsui DS Asset Management Company Ltd raised its stake in Cadence Design Systems, Inc. (NASDAQ:CDNS) by 5.4% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 42,428 shares of the software maker’s stock after acquiring an additional 2,180 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd’s holdings in Cadence Design Systems were worth $14,009,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Whipplewood Advisors LLC boosted its stake in Cadence Design Systems by 933.3% in the 1st quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker’s stock worth $26,000 after purchasing an additional 84 shares in the last quarter. Brown Lisle Cummings Inc. increased its stake in Cadence Design Systems by 860.0% during the 1st quarter. Brown Lisle Cummings Inc. now owns 96 shares of the software maker’s stock valued at $27,000 after purchasing an additional 86 shares in the last quarter. Avalon Trust Co bought a new stake in Cadence Design Systems during the 2nd quarter valued at about $30,000. Burkett Financial Services LLC bought a new stake in Cadence Design Systems during the 3rd quarter valued at about $30,000. Finally, Fiduciary Financial Advisors purchased a new position in Cadence Design Systems in the second quarter worth about $31,000. 84.85% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the stock. KeyCorp reiterated an “overweight” rating on shares of Cadence Design Systems in a research note on Tuesday, July 28th. Bank of America increased their price target on shares of Cadence Design Systems from $400.00 to $420.00 and gave the company a “buy” rating in a report on Tuesday, July 28th. Rothschild & Co Redburn raised their price target on shares of Cadence Design Systems from $385.00 to $395.00 and gave the company a “buy” rating in a research report on Tuesday, July 28th. The Goldman Sachs Group raised their price target on shares of Cadence Design Systems from $410.00 to $470.00 and gave the company a “buy” rating in a research report on Monday, July 13th. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $420.00 price objective (up from $400.00) on shares of Cadence Design Systems in a report on Wednesday, October 7th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, Cadence Design Systems presently has an average rating of “Moderate Buy” and an average target price of $404.14.

Cadence Design Systems Trading Down 1.8%

Shares of NASDAQ:CDNS opened at $319.87 on Wednesday. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.53. Cadence Design Systems, Inc. has a 1 year low of $262.75 and a 1 year high of $416.69. The company has a market cap of $88.09 billion, a P/E ratio of 63.59, a PEG ratio of 3.49 and a beta of 1.13. The stock’s fifty day moving average price is $318.58 and its 200-day moving average price is $339.93.

Cadence Design Systems (NASDAQ:CDNS) last released its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, topping the consensus estimate of $2.05 by $0.06. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%. The company had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.58 billion. During the same period last year, the company earned $1.65 EPS. Cadence Design Systems’s revenue for the quarter was up 24.2% on a year-over-year basis. 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. Sell-side analysts expect that Cadence Design Systems, Inc. will post 6.41 earnings per share for the current year.

Cadence Design Systems News Roundup

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

• Positive Sentiment: Expanding AI and SoC design partnership: Socionext is collaborating with Cadence to apply agentic AI to the physical design of large-scale, advanced-process system-on-chip products. The relationship highlights demand for Cadence’s AI-enabled electronic design automation tools. Socionext Expands Agentic AI to Advanced, Large-Scale SoC Physical Design
• Positive Sentiment: Long-term growth thesis remains intact: Cadence’s deep integration into customer workflows, partnerships with TSMC, Samsung, Google Cloud and NVIDIA, recurring revenue, approximately $8.1 billion backlog and reported 45.5% non-GAAP operating margin support revenue visibility. Rising chip complexity may further increase demand for its design software. Cadence: The Design Bottleneck Is Becoming More Valuable
• Neutral Sentiment: Upcoming earnings are a near-term catalyst: Analysts expect Cadence to release quarterly results shortly, while recent commentary points to earnings growth potential and factors that could support a beat. Investors may remain cautious ahead of the report because guidance and forward demand will be central to the valuation debate. Cadence Earnings Expected to Grow
• Negative Sentiment: Valuation and execution risks are pressuring the shares: Cadence trades at a premium valuation, making the stock sensitive to expectations for growth and earnings. Export restrictions and the integration of recent acquisitions, including Hexagon, are identified as material risks. Cadence: The Design Bottleneck Is Becoming More Valuable
• Negative Sentiment: Cautious analyst stance: Wall Street Zen lowered its rating on CDNS to Hold, adding to investor caution and likely contributing to the stock’s weaker performance despite the company’s favorable growth narrative. Cadence Rating Lowered to Hold

Insider Activity at Cadence Design Systems

In related news, Director Ita M. Brennan sold 180 shares of the stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $285.51, for a total transaction of $51,391.80. Following the transaction, the director owned 7,824 shares in the company, valued at $2,233,830.24. This represents a 2.25% decrease in their ownership of the stock. The sale was disclosed in a document filed 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, VP Paul Scannell sold 280 shares of the stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $339.00, for a total transaction of $94,920.00. Following the transaction, the vice president owned 31,720 shares in the company, valued at approximately $10,753,080. This trade represents a 0.88% decrease in their position. 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 90 days, insiders sold 8,960 shares of company stock worth $2,834,139. 0.49% of the stock is owned by insiders.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc develops computational software, hardware, and semiconductor intellectual property used to design and verify electronic systems and integrated circuits. Its electronic design automation (EDA) solutions support chip development across areas such as digital and custom IC design, functional verification, emulation, prototyping, and system analysis.

The company also provides semiconductor IP, including processor cores, interconnect technologies, memory interfaces, and other building blocks that help customers develop complex chips.