Cadence Design Systems, Inc. $CDNS Position Increased by Sumitomo Mitsui DS Asset Management Company Ltd

Sumitomo Mitsui DS Asset Management Company Ltd raised its position in Cadence Design Systems, Inc. (NASDAQ:CDNS) by 5.4% during the third quarter, Holdings Channel reports. 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 filing with the SEC.

Several other institutional investors and hedge funds have also bought and sold shares of CDNS. Avalon Trust Co bought a new stake in shares of Cadence Design Systems during the 2nd quarter valued at about $30,000. Fiduciary Financial Advisors purchased a new stake in shares of Cadence Design Systems during the 2nd quarter valued at about $31,000. Arlington Trust Co LLC lifted its stake in shares of Cadence Design Systems by 154.3% in the 2nd quarter. Arlington Trust Co LLC now owns 89 shares of the software maker’s stock worth $33,000 after purchasing an additional 54 shares during the period. Burkett Financial Services LLC bought a new position in shares of Cadence Design Systems in the 3rd quarter worth approximately $30,000. Finally, Whipplewood Advisors LLC lifted its stake in shares of 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 during the period. 84.85% of the stock is owned by hedge funds and other institutional investors.

Cadence Design Systems Stock Performance

NASDAQ:CDNS opened at $319.87 on Wednesday. The stock has a 50-day simple moving average of $318.58 and a two-hundred day simple moving average of $339.93. Cadence Design Systems, Inc. has a 52-week low of $262.75 and a 52-week high of $416.69. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.53 and a current ratio of 1.74. The firm has a market capitalization of $88.09 billion, a PE ratio of 63.59, a P/E/G ratio of 3.49 and a beta of 1.13.

Cadence Design Systems (NASDAQ:CDNS) last issued its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, topping analysts’ consensus estimates 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 business had revenue of $1.58 billion during the quarter, compared to analysts’ expectations of $1.58 billion. During the same quarter in the prior year, the business posted $1.65 earnings per share. The business’s quarterly revenue 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. Analysts forecast that Cadence Design Systems, Inc. will post 6.41 EPS for the current year.

Insider Buying and Selling

In related news, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $350.07, for a total value of $437,587.50. Following the completion of the sale, the director directly 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. The transaction 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, VP Paul Cunningham sold 2,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $277.12, for a total transaction of $554,240.00. Following the sale, the vice president owned 121,793 shares in the company, valued at approximately $33,751,276.16. The trade was a 1.62% 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. Insiders sold 8,960 shares of company stock valued at $2,834,139 in the last 90 days. Corporate insiders own 0.49% of the company’s stock.

Key Cadence Design Systems News

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

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on CDNS. Oppenheimer reissued a “market perform” rating and issued a $300.00 price objective (up from $275.00) on shares of Cadence Design Systems in a report on Tuesday, July 28th. FBN Securities initiated coverage on shares of Cadence Design Systems in a report on Friday, September 11th. They set an “outperform” rating and a $375.00 target price for the company. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $420.00 target price (up from $400.00) on shares of Cadence Design Systems in a report on Wednesday, October 7th. Piper Sandler increased their price target on shares of Cadence Design Systems from $325.00 to $349.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 28th. Finally, Rothschild & Co Redburn lifted their price target on shares of Cadence Design Systems from $385.00 to $395.00 and gave the stock a “buy” rating in a research note on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $404.14.

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.