Traders Purchase High Volume of Put Options on Cadence Design Systems (NASDAQ:CDNS)

Cadence Design Systems, Inc. (NASDAQ:CDNS) was the recipient of some unusual options trading on Thursday. Stock investors purchased 25,594 put options on the company. This is an increase of 291% compared to the typical volume of 6,553 put options.

Cadence Design Systems Stock Up 1.6%

Shares of Cadence Design Systems stock traded up $6.61 during midday trading on Thursday, hitting $414.61. The company’s stock had a trading volume of 911,607 shares, compared to its average volume of 2,476,617. The firm has a market capitalization of $114.36 billion, a P/E ratio of 96.65, a PEG ratio of 4.93 and a beta of 1.15. The stock has a 50-day simple moving average of $328.72 and a 200-day simple moving average of $314.72. 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 has a 1-year low of $262.75 and a 1-year high of $416.69.

Cadence Design Systems (NASDAQ:CDNS) last issued its earnings results on Monday, April 27th. The software maker reported $1.96 EPS for the quarter, topping the consensus estimate of $1.91 by $0.05. The business had revenue of $1.47 billion during the quarter, compared to analysts’ expectations of $1.46 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.Cadence Design Systems’s revenue was up 18.6% compared to the same quarter last year. During the same quarter last year, the firm posted $1.57 earnings per share. Cadence Design Systems has set its FY 2026 guidance at 7.850-7.950 EPS and its Q2 2026 guidance at 2.020-2.080 EPS. As a group, sell-side analysts expect that Cadence Design Systems will post 6.23 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on CDNS. Robert W. Baird boosted their price objective on Cadence Design Systems from $381.00 to $385.00 and gave the stock an “outperform” rating in a report on Tuesday, April 28th. 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 report on Wednesday, February 18th. Stifel Nicolaus set a $395.00 price objective on Cadence Design Systems in a report on Wednesday, February 18th. Rosenblatt Securities restated a “buy” rating and set a $360.00 price objective on shares of Cadence Design Systems in a report on Friday, April 24th. Finally, Wells Fargo & Company boosted their price objective on Cadence Design Systems from $400.00 to $425.00 and gave the stock an “overweight” rating in a report on Tuesday, May 26th. Fourteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $384.41.

Trending Headlines about Cadence Design Systems

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

• Positive Sentiment: Cadence was highlighted as a potential long-term winner in the AI and semiconductor “arms race,” with a Buy rating and a $470 price target. The article cited 19% year-over-year revenue growth, an $8 billion backlog, and broad-based double-digit growth, which supports the company’s growth outlook. Article: Cadence: The Silicon Arms Race Is Just Getting Started
• Positive Sentiment: Analyst commentary remains constructive overall, with several firms maintaining Buy/Overweight views and raising price targets, reflecting confidence in Cadence’s EDA software leadership and AI-related demand. Article: Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum
• Neutral Sentiment: Cadence’s presentations at the Bank of America Global Technology Conference and the Nasdaq conference kept the stock in focus, but did not include new financial guidance or a material business update. Article: Cadence Design Systems, Inc. Presents at Bank of America 2026 Global Technology Conference Transcript
• Neutral Sentiment: The stock has been trading near its 52-week high, which signals strong momentum but can also leave shares more sensitive to profit-taking after a sharp run-up. Article: 1 Momentum Stock with Competitive Advantages and 2 We Brush Off
• Negative Sentiment: Unusually heavy put-option volume suggests some traders are positioning for downside, which can weigh on short-term sentiment around CDNS. Article: Unusual options trading activity
• Negative Sentiment: CEO Anirudh Devgan sold 51,822 shares and VP Paul Scannell sold 7,081 shares in recent transactions, adding to concern that insiders may be locking in gains after the stock’s strong move higher, even though both trades were under pre-arranged 10b5-1 plans. Article: Insider trade details for Anirudh Devgan
• Negative Sentiment: Recent coverage said CDNS underperformed the broader market in the latest session, suggesting some investors are taking profits or reassessing valuation after the rally. Article: Here’s Why Cadence Design Systems (CDNS) Fell More Than Broader Market

Insider Transactions at Cadence Design Systems

In other Cadence Design Systems news, CFO John M. Wall sold 21,500 shares of the stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $309.45, for a total transaction of $6,653,175.00. Following the completion of the transaction, the chief financial officer directly owned 86,875 shares of the company’s stock, valued at approximately $26,883,468.75. This trade represents a 19.84% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 10,500 shares of the stock in a transaction on Friday, May 1st. The shares were sold at an average price of $339.00, for a total value of $3,559,500.00. Following the transaction, the vice president directly owned 33,946 shares of the company’s stock, valued at approximately $11,507,694. The trade was a 23.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 176,046 shares of company stock valued at $65,830,801. Company insiders own 0.49% of the company’s stock.

Institutional Trading of Cadence Design Systems

Hedge funds and other institutional investors have recently modified their holdings of the business. Y.D. More Investments Ltd acquired a new stake in shares of Cadence Design Systems in the third quarter worth $26,000. Whipplewood Advisors LLC raised its holdings in shares of Cadence Design Systems by 933.3% during the first quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker’s stock worth $26,000 after acquiring an additional 84 shares in the last quarter. Brown Lisle Cummings Inc. raised its holdings in shares of Cadence Design Systems by 860.0% during the first quarter. Brown Lisle Cummings Inc. now owns 96 shares of the software maker’s stock worth $27,000 after acquiring an additional 86 shares in the last quarter. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Cadence Design Systems during the fourth quarter worth $28,000. Finally, Caitlin John LLC purchased a new stake in shares of Cadence Design Systems during the third quarter worth $29,000. Institutional investors and hedge funds own 84.85% of the company’s stock.

Cadence Design Systems Company 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.