Sumitomo Life Insurance Co. Grows Position in Cadence Design Systems, Inc. $CDNS

Sumitomo Life Insurance Co. grew its stake in Cadence Design Systems, Inc. (NASDAQ:CDNS) by 44.4% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 19,200 shares of the software maker’s stock after purchasing an additional 5,900 shares during the period. Sumitomo Life Insurance Co.’s holdings in Cadence Design Systems were worth $6,744,000 at the end of the most recent reporting period.

Several other hedge funds have also modified their holdings of CDNS. Norges Bank acquired a new position in Cadence Design Systems in the second quarter valued at $1,190,618,000. Massachusetts Financial Services Co. MA boosted its holdings in shares of Cadence Design Systems by 16.0% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 5,314,407 shares of the software maker’s stock valued at $1,866,739,000 after buying an additional 731,788 shares during the period. Voya Investment Management LLC raised its holdings in shares of Cadence Design Systems by 914.2% during the third quarter. Voya Investment Management LLC now owns 691,071 shares of the software maker’s stock valued at $242,746,000 after buying an additional 622,934 shares during the last quarter. Scge Management L.P. bought a new stake in Cadence Design Systems during the 2nd quarter valued at $187,663,000. Finally, Bain Capital Public Equity Management II LLC acquired a new position in Cadence Design Systems during the 2nd quarter worth $130,534,000. 84.85% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Cadence Design Systems

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

• Positive Sentiment: Q4 beat and management commentary point to durable AI-driven demand — Cadence topped revenue and EPS estimates for Q4 and management highlighted accelerating adoption of AI-powered EDA tools and stronger IP demand, which supports near-term revenue visibility. 5 Revealing Analyst Questions From Cadence Design Systems’s Q4 Earnings Call
• Positive Sentiment: Analyst support and price-target lift — Bank of America (covered in TipRanks) reiterated a Buy and a $375 target, giving investors a higher reference price and reinforcing buy-side conviction. Cadence Design Systems: Strategic Hexagon Acquisition and Discounted Valuation Support Buy Rating and $375 Target
• Positive Sentiment: Broader semiconductor strength (NVIDIA beat) supports EDA demand — NVIDIA’s blowout results and surging data-center spend are a positive signal for chip design activity, which typically increases demand for Cadence’s software and IP. NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2026
• Neutral Sentiment: Investor visibility event — CEO Anirudh Devgan will present at a Morgan Stanley conference, a standard investor-relations event that can help maintain institutional interest but is unlikely to move fundamentals immediately. Cadence’s Anirudh Devgan to Present at Morgan Stanley Conference
• Neutral Sentiment: Media and retail attention — Jim Cramer mentions and heavy search interest (coverage on Yahoo/Zacks) can amplify short-term retail flows but don’t change company fundamentals. Jim Cramer Discusses Cadence Design Systems (CDNS)
• Neutral Sentiment: Odd short-interest data — a recent short-interest report contained anomalous/zero values, so it doesn’t provide a reliable signal about bearish positioning right now.
• Negative Sentiment: Valuation and cautionary takes — some articles highlight one skeptical point (and general valuation risk) despite strong cash flow; investors worried about a high P/E and where growth will come from may be cautious. 2 Reasons to Like CDNS and 1 to Stay Skeptical
• Negative Sentiment: Cash-generation caution — a broader piece on cash-producing stocks warns that strong cash balances aren’t enough if capital allocation or reinvestment falters; that is a risk some investors are watching for Cadence. 2 Cash-Producing Stocks Worth Your Attention and 1 We Find Risky

Insider Activity at Cadence Design Systems

In other news, Director Ita M. Brennan sold 180 shares of Cadence Design Systems stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $337.48, for a total transaction of $60,746.40. Following the completion of the sale, the director owned 7,650 shares of the company’s stock, valued at approximately $2,581,722. This trade represents a 2.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Paul Scannell sold 5,490 shares of the stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $339.43, for a total transaction of $1,863,470.70. Following the transaction, the vice president owned 20,321 shares in the company, valued at approximately $6,897,557.03. The trade was a 21.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 56,475 shares of company stock valued at $18,505,486. 1.99% of the stock is owned by corporate insiders.

Cadence Design Systems Price Performance

Shares of CDNS opened at $301.84 on Thursday. The stock has a market cap of $82.30 billion, a P/E ratio of 74.35, a price-to-earnings-growth ratio of 3.57 and a beta of 1.01. Cadence Design Systems, Inc. has a 1 year low of $221.56 and a 1 year high of $376.45. The stock’s 50-day moving average price is $306.33 and its two-hundred day moving average price is $326.44. The company has a current ratio of 2.86, a quick ratio of 2.67 and a debt-to-equity ratio of 0.45.

Cadence Design Systems (NASDAQ:CDNS) last announced 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. The business had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.42 billion. Cadence Design Systems had a net margin of 20.93% and a return on equity of 29.34%. Cadence Design Systems’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same period last year, the company posted $1.88 EPS. 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. On average, equities analysts predict that Cadence Design Systems, Inc. will post 5.41 earnings per share for the current year.

Analyst Ratings Changes

Several equities analysts have commented on the stock. Piper Sandler lowered their target price on shares of Cadence Design Systems from $355.00 to $319.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 18th. Morgan Stanley cut their price objective on Cadence Design Systems from $385.00 to $370.00 and set an “overweight” rating on the stock in a research note on Wednesday, February 18th. Rosenblatt Securities raised Cadence Design Systems from a “neutral” rating to a “buy” rating and lifted their price objective for the company from $335.00 to $360.00 in a report on Wednesday, February 18th. Oppenheimer upgraded shares of Cadence Design Systems from an “underperform” rating to a “market perform” rating and set a $275.00 price objective for the company in a research report on Monday, December 1st. Finally, Needham & Company LLC reissued a “buy” rating and set a $390.00 price objective on shares of Cadence Design Systems in a report on Wednesday, February 18th. Fifteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, Cadence Design Systems presently has a consensus rating of “Moderate Buy” and a consensus target price of $376.50.

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.