Cadence Design Systems, Inc. $CDNS Stock: Axecap Investments LLC Cuts Position

Axecap Investments LLC trimmed its stake in Cadence Design Systems, Inc. (NASDAQ:CDNS) by 67.7% in the 3rd quarter, HoldingsChannel reports. The fund owned 4,480 shares of the software maker’s stock after selling 9,377 shares during the quarter. Axecap Investments LLC’s holdings in Cadence Design Systems were worth $1,479,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in the stock. Quadrant Capital Group LLC lifted its stake in shares of Cadence Design Systems by 1.0% during the 3rd quarter. Quadrant Capital Group LLC now owns 6,963 shares of the software maker’s stock worth $2,327,000 after purchasing an additional 70 shares during the last quarter. Robeco Institutional Asset Management B.V. boosted its position in Cadence Design Systems by 24.1% during the third quarter. Robeco Institutional Asset Management B.V. now owns 607,455 shares of the software maker’s stock valued at $200,573,000 after purchasing an additional 117,824 shares in the last quarter. Diversify Advisory Services LLC grew its stake in Cadence Design Systems by 38.4% in the third quarter. Diversify Advisory Services LLC now owns 11,188 shares of the software maker’s stock valued at $3,629,000 after purchasing an additional 3,103 shares during the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd grew its stake in Cadence Design Systems by 5.4% in the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 42,428 shares of the software maker’s stock valued at $14,009,000 after purchasing an additional 2,180 shares during the last quarter. Finally, Clark Financial Services Group Inc. BD grew its stake in Cadence Design Systems by 14.5% in the third quarter. Clark Financial Services Group Inc. BD now owns 2,049 shares of the software maker’s stock valued at $677,000 after purchasing an additional 260 shares during the last quarter. 84.85% of the stock is owned by institutional investors.

Insider Transactions at Cadence Design Systems

In other Cadence Design Systems news, Director Ita M. Brennan sold 180 shares of Cadence Design Systems stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $285.51, for a total transaction of $51,391.80. Following the completion of the sale, the director owned 7,824 shares of the company’s stock, valued at approximately $2,233,830.24. The trade was a 2.25% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the business’s stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $350.07, for a total value of $437,587.50. Following the sale, the director owned 39,544 shares in the company, valued at approximately $13,843,168.08. The trade was a 3.06% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 8,960 shares of company stock valued at $2,834,139 in the last quarter. Insiders own 0.49% of the company’s stock.

Analyst Upgrades and Downgrades

CDNS has been the subject of several analyst reports. Citigroup 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 research report on Tuesday, July 28th. Rosenblatt Securities raised their price target on shares of Cadence Design Systems from $410.00 to $420.00 and gave the company a “buy” rating in a report on Tuesday, July 28th. Oppenheimer restated a “market perform” rating and issued a $300.00 price target (up from $275.00) on shares of Cadence Design Systems in a report on Tuesday, July 28th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $420.00 price objective (up from $400.00) on shares of Cadence Design Systems in a research note on Wednesday, October 7th. Finally, Needham & Company LLC reissued a “buy” rating and set a $400.00 target price on shares of Cadence Design Systems in a research report on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, Cadence Design Systems has a consensus rating of “Moderate Buy” and an average target price of $404.14.

Cadence Design Systems Trading Down 1.8%

Shares of Cadence Design Systems stock opened at $319.87 on Wednesday. The firm’s 50 day simple moving average is $318.58 and its two-hundred day simple moving average is $339.93. The firm has a market capitalization of $88.09 billion, a price-to-earnings ratio of 63.59, a PEG ratio of 3.49 and a beta of 1.13. Cadence Design Systems, Inc. has a 12-month low of $262.75 and a 12-month high of $416.69. The company has a current ratio of 1.74, a quick ratio of 1.53 and a debt-to-equity ratio of 0.36.

Cadence Design Systems (NASDAQ:CDNS) last posted 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 net margin of 23.60% and a return on equity of 27.98%. The business had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.58 billion. During the same period in the previous year, the firm posted $1.65 earnings per share. The business’s revenue for the quarter 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. Analysts predict that Cadence Design Systems, Inc. will post 6.41 EPS for the current year.

Cadence Design Systems News Summary

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

About Cadence Design Systems

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.