Smith Group Asset Management LLC Increases Stock Position in Cadence Design Systems, Inc. $CDNS

Smith Group Asset Management LLC raised its stake in Cadence Design Systems, Inc. (NASDAQ:CDNS) by 7.4% in the 1st quarter, HoldingsChannel.com reports. The fund owned 130,269 shares of the software maker’s stock after purchasing an additional 9,014 shares during the period. Cadence Design Systems comprises 1.8% of Smith Group Asset Management LLC’s portfolio, making the stock its 28th largest holding. Smith Group Asset Management LLC’s holdings in Cadence Design Systems were worth $36,198,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently made changes to their positions in CDNS. MUFG Securities EMEA plc grew its position in Cadence Design Systems by 113.9% in the 4th quarter. MUFG Securities EMEA plc now owns 11,159 shares of the software maker’s stock valued at $3,488,000 after buying an additional 5,943 shares during the last quarter. Sun Financial Inc acquired a new position in Cadence Design Systems in the 4th quarter valued at $1,225,000. DDD Partners LLC raised its position in Cadence Design Systems by 27.4% during the 4th quarter. DDD Partners LLC now owns 41,968 shares of the software maker’s stock worth $13,118,000 after buying an additional 9,024 shares during the last quarter. Leonteq Securities AG acquired a new stake in shares of Cadence Design Systems in the 4th quarter worth $1,105,000. Finally, Indivisible Partners acquired a new stake in shares of Cadence Design Systems in the 4th quarter worth $4,795,000. Hedge funds and other institutional investors own 84.85% of the company’s stock.

Insider Buying and Selling

In other news, CEO Anirudh Devgan sold 51,887 shares of Cadence Design Systems 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 directly owned 303,525 shares in the company, valued at approximately $112,304,250. This trade represents a 14.60% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 10,500 shares of the business’s stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $339.00, for a total value of $3,559,500.00. Following the sale, the vice president directly owned 33,946 shares in the company, valued at $11,507,694. This trade represents a 23.62% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 157,057 shares of company stock valued at $60,272,277 in the last 90 days. 0.49% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

CDNS has been the topic of a number of recent analyst reports. Needham & Company LLC reiterated a “buy” rating and set a $400.00 price target on shares of Cadence Design Systems in a research note on Tuesday. Oppenheimer restated a “market perform” rating and issued a $300.00 price objective on shares of Cadence Design Systems in a research report on Tuesday. Berenberg Bank set a $440.00 price objective on Cadence Design Systems in a report on Wednesday, May 27th. Stifel Nicolaus lifted their price objective on Cadence Design Systems from $395.00 to $432.00 and gave the company a “buy” rating in a report on Tuesday, June 9th. Finally, Bank of America boosted their target price on Cadence Design Systems from $400.00 to $420.00 and gave the stock a “buy” rating in a research report on Tuesday. Thirteen research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $403.81.

Key Headlines Impacting Cadence Design Systems

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

• Positive Sentiment: Q2 earnings beat expectations: Cadence reported adjusted earnings of $2.11 per share, above the $2.05 consensus estimate. Revenue reached $1.58 billion, up 24.2% year over year and roughly in line with expectations. Cadence Design Systems Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: AI demand lifted the outlook: Management raised its full-year 2026 guidance to approximately $6.3 billion in revenue and $8.05-$8.15 in EPS. Third-quarter EPS guidance of $2.01-$2.07 also exceeds the $1.84 analyst consensus. The company cited robust demand for AI-powered design software, high-performance computing, and broader adoption of its core tools. Cadence raises annual forecasts as demand booms for AI chip design
• Positive Sentiment: Record backlog supports visibility: Reports highlighted an $8.1 billion backlog and anticipated 19% 2026 revenue growth. Expanding partnerships and customer interest in “agentic AI” are increasing usage across Cadence’s design portfolio. Cadence signals 19 percent 2026 revenue growth
• Positive Sentiment: Analyst sentiment improved: Bank of America and Rosenblatt raised their price targets to $420 and assigned buy ratings, while Baird lifted its target to $420 and maintained an outperform rating. Needham reaffirmed its buy rating with a $400 target. Analyst rating updates
• Neutral Sentiment: Valuation remains demanding: Piper Sandler raised its target from $325 to $349 but retained a neutral rating, suggesting limited upside relative to the other analysts’ forecasts. Cadence also trades at a high earnings multiple, leaving the stock sensitive to any slowdown in AI-related spending or future guidance.

Cadence Design Systems Price Performance

Shares of NASDAQ CDNS opened at $344.72 on Wednesday. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.47. Cadence Design Systems, Inc. has a one year low of $262.75 and a one year high of $416.69. The firm has a market capitalization of $95.08 billion, a P/E ratio of 68.53, a PEG ratio of 4.01 and a beta of 1.15. The company’s fifty day moving average is $373.90 and its two-hundred day moving average is $329.80.

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, beating 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 29.34%. The business had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.58 billion. During the same quarter last year, the firm posted $1.65 EPS. The business’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. Analysts forecast that Cadence Design Systems, Inc. will post 6.23 EPS for the current fiscal year.

About Cadence Design Systems

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.