Cadence Design Systems, Inc. $CDNS Stock Holdings Reduced by Smith Group Asset Management LLC

Smith Group Asset Management LLC reduced its stake in Cadence Design Systems, Inc. (NASDAQ:CDNS) by 40.9% in the 3rd quarter, HoldingsChannel reports. The firm owned 82,772 shares of the software maker’s stock after selling 57,348 shares during the quarter. Cadence Design Systems makes up 1.8% of Smith Group Asset Management LLC’s portfolio, making the stock its 26th biggest position. Smith Group Asset Management LLC’s holdings in Cadence Design Systems were worth $27,330,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in the stock. Whipplewood Advisors LLC boosted its position in shares of Cadence Design Systems by 933.3% during 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. Avalon Trust Co acquired a new stake in shares of Cadence Design Systems in the 2nd quarter valued at about $30,000. Burkett Financial Services LLC bought a new stake in Cadence Design Systems in the 3rd quarter valued at about $30,000. Fiduciary Financial Advisors bought a new stake in Cadence Design Systems in the 2nd quarter valued at about $31,000. Finally, Balance Wealth Partners LLC bought a new stake in Cadence Design Systems in the 3rd quarter valued at about $32,000. Institutional investors and hedge funds own 84.85% of the company’s stock.

Insider Buying and Selling

In other news, Director Ita M. Brennan sold 180 shares of the company’s stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $285.51, for a total value of $51,391.80. Following the completion of the sale, the director owned 7,824 shares in the company, valued at $2,233,830.24. This represents a 2.25% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $350.07, for a total transaction of $437,587.50. Following the completion of the sale, the director owned 39,544 shares of the company’s stock, valued at approximately $13,843,168.08. This represents 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 have sold a total of 8,960 shares of company stock valued at $2,834,139 in the last 90 days. Insiders own 0.49% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on CDNS. FBN Securities began coverage on Cadence Design Systems in a research note on Friday, September 11th. They set an “outperform” rating and a $375.00 price target on the stock. Robert W. Baird raised their price objective on Cadence Design Systems from $420.00 to $440.00 and gave the company an “outperform” rating in a research note on Tuesday. Rothschild & Co Redburn boosted their price objective on Cadence Design Systems from $385.00 to $395.00 and gave the company a “buy” rating in a report on Tuesday, July 28th. Morgan Stanley reaffirmed an “overweight” rating and set a $400.00 target price (up from $370.00) on shares of Cadence Design Systems in a research report on Wednesday, July 29th. Finally, Piper Sandler upped their target price on Cadence Design Systems from $325.00 to $349.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Cadence Design Systems presently has a consensus rating of “Moderate Buy” and an average price target of $410.05.

Key Headlines Impacting Cadence Design Systems

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

• Positive Sentiment: Q3 beat and raised outlook: Cadence reported adjusted earnings of $2.11 per share versus the $2.05 consensus, while revenue increased 22% year over year to $1.63 billion. Management raised its full-year 2026 revenue-growth outlook to 21%, supported by strong customer demand. Cadence Q3 Earnings Beat Estimates on AI Demand, Outlook Raised
• Positive Sentiment: AI momentum and backlog: Record backlog of approximately $8.2 billion, accelerating adoption of AI and agentic-design tools, and growth across electronic design automation, intellectual property and systems design are reinforcing expectations for sustained expansion. Cadence Design Systems: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: New AI product initiative: Cadence introduced its Maestro AI Model Portfolio to support AI “super agents” across semiconductor and system-design workflows, strengthening its positioning in the expanding AI-design software market. Cadence Introduces Maestro AI Model Portfolio
• Positive Sentiment: Analyst support increased: JPMorgan raised its target to $420 from $405 with an overweight rating, while Needham lifted its target to $430 and Baird to $440. Wall Street Zen also upgraded the stock, adding to the positive sentiment following the earnings release. Needham Raises Cadence Price Target
• Neutral Sentiment: Investor focus: Analysts view the earnings beat and raised guidance as occurring early in a potentially significant “agentic AI” opportunity, but investors will continue monitoring how quickly that opportunity converts into revenue and earnings.
• Negative Sentiment: Risk signals remain: Unusually heavy put-option purchases—about 145% above typical daily volume—suggest some investors are hedging or positioning for weakness. Cadence’s premium valuation and reported margin pressure could also encourage profit-taking despite the improved outlook.

Cadence Design Systems Stock Down 0.2%

CDNS stock opened at $342.46 on Thursday. The firm has a market capitalization of $94.31 billion, a PE ratio of 68.08, a P/E/G ratio of 3.38 and a beta of 1.13. The company has a quick ratio of 1.53, a current ratio of 1.74 and a debt-to-equity ratio of 0.36. Cadence Design Systems, Inc. has a twelve month low of $262.75 and a twelve month high of $416.69. The stock’s 50 day moving average is $319.69 and its 200-day moving average is $327.18.

Cadence Design Systems (NASDAQ:CDNS) last announced its quarterly earnings results on Monday, October 26th. The software maker reported $2.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.05 by $0.06. The business had revenue of $1.63 billion during the quarter, compared to the consensus estimate of $1.61 billion. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%. Cadence Design Systems’s revenue was up 22.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.93 earnings per share. Sell-side analysts expect that Cadence Design Systems, Inc. will post 6.42 EPS for the current fiscal year.

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.