Cadence Design Systems, Inc. $CDNS Stake Trimmed by Spyglass Capital Management LLC

Spyglass Capital Management LLC lessened its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS) by 14.1% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 233,347 shares of the software maker’s stock after selling 38,145 shares during the period. Cadence Design Systems comprises 4.6% of Spyglass Capital Management LLC’s investment portfolio, making the stock its 8th largest holding. Spyglass Capital Management LLC owned about 0.08% of Cadence Design Systems worth $64,840,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently bought and sold shares of CDNS. Brighton Jones LLC lifted its position in shares of Cadence Design Systems by 80.2% in the 4th quarter. Brighton Jones LLC now owns 1,519 shares of the software maker’s stock valued at $456,000 after acquiring an additional 676 shares in the last quarter. Integrated Wealth Concepts LLC boosted its stake in Cadence Design Systems by 3.8% in the 1st quarter. Integrated Wealth Concepts LLC now owns 2,203 shares of the software maker’s stock worth $560,000 after purchasing an additional 80 shares during the period. Thompson Davis & CO. Inc. purchased a new position in Cadence Design Systems during the 2nd quarter worth approximately $205,000. NewEdge Advisors LLC raised its stake in Cadence Design Systems by 39.3% during the 2nd quarter. NewEdge Advisors LLC now owns 34,787 shares of the software maker’s stock valued at $10,720,000 after purchasing an additional 9,807 shares during the period. Finally, Glenview Trust co acquired a new stake in Cadence Design Systems during the 2nd quarter valued at $226,000. 84.85% of the stock is owned by hedge funds and other institutional investors.

Cadence Design Systems Trading Up 1.8%

Shares of NASDAQ:CDNS opened at $344.72 on Wednesday. The firm has a fifty day moving average of $373.90 and a two-hundred day moving average of $329.80. The firm has a market capitalization of $95.08 billion, a P/E ratio of 68.53, a price-to-earnings-growth ratio of 4.01 and a beta of 1.15. Cadence Design Systems, Inc. has a 12-month low of $262.75 and a 12-month high of $416.69. The company has a quick ratio of 1.32, a current ratio of 1.47 and a debt-to-equity ratio of 0.38.

Cadence Design Systems (NASDAQ:CDNS) last posted its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, beating 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 29.34%. The business had revenue of $1.58 billion for the quarter, compared to analysts’ expectations of $1.58 billion. During the same period in the previous year, the company posted $1.65 EPS. Cadence Design Systems’s 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. On average, equities analysts expect that Cadence Design Systems, Inc. will post 6.23 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several brokerages have recently commented on CDNS. KeyCorp reaffirmed an “overweight” rating on shares of Cadence Design Systems in a research report on Tuesday. Citigroup increased their price objective on Cadence Design Systems from $400.00 to $420.00 and gave the stock a “buy” rating in a research note on Tuesday. Berenberg Bank set a $440.00 price objective on Cadence Design Systems in a research report on Wednesday, May 27th. Piper Sandler lifted their target price on Cadence Design Systems from $325.00 to $349.00 and gave the company a “neutral” rating in a research note on Tuesday. Finally, Wells Fargo & Company upped their target price on Cadence Design Systems from $400.00 to $425.00 and gave the company an “overweight” rating in a report on Tuesday, May 26th. Thirteen equities 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, Cadence Design Systems has an average rating of “Moderate Buy” and an average price target of $403.81.

Key Cadence Design Systems News

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.

Insider Transactions at Cadence Design Systems

In other news, VP Paul Cunningham sold 2,000 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $391.00, for a total transaction of $782,000.00. Following the completion of the sale, the vice president directly owned 126,586 shares of the company’s stock, valued at $49,495,126. This trade represents a 1.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Wall sold 5,000 shares of Cadence Design Systems stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $348.71, for a total value of $1,743,550.00. Following the sale, the chief financial officer owned 81,875 shares of the company’s stock, valued at approximately $28,550,631.25. This represents a 5.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 157,057 shares of company stock valued at $60,272,277. Corporate insiders own 0.49% of the company’s stock.

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.