166,240 Shares in Cadence Design Systems, Inc. $CDNS Purchased by Railway Pension Investments Ltd

Key Points

• Railway Pension Investments Ltd opened a new position in Cadence Design Systems, buying 166,240 shares valued at about $51.96 million in the fourth quarter. The stake represented roughly 0.06% of the company.
• Cadence reported strong quarterly results, with EPS of $1.96 topping estimates and revenue of $1.47 billion slightly ahead of forecasts. The company also issued upbeat FY2026 and Q2 2026 guidance.
• Despite the solid fundamentals, insider selling has been notable, including CEO Anirudh Devgan’s sale of 51,887 shares under a pre-arranged trading plan. Analysts remain mostly positive, with a consensus rating of Moderate Buy and an average price target of $384.41.

Railway Pension Investments Ltd bought a new position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 166,240 shares of the software maker's stock, valued at approximately $51,963,000. Railway Pension Investments Ltd owned 0.06% of Cadence Design Systems at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in the business. MUFG Securities EMEA plc lifted its position in Cadence Design Systems by 113.9% during the fourth quarter. MUFG Securities EMEA plc now owns 11,159 shares of the software maker's stock worth $3,488,000 after buying an additional 5,943 shares during the period. Texas Yale Capital Corp. lifted its position in Cadence Design Systems by 3.6% during the fourth quarter. Texas Yale Capital Corp. now owns 10,779 shares of the software maker's stock worth $3,369,000 after buying an additional 370 shares during the period. Gulf International Bank UK Ltd lifted its position in Cadence Design Systems by 0.4% during the fourth quarter. Gulf International Bank UK Ltd now owns 13,796 shares of the software maker's stock worth $4,312,000 after buying an additional 50 shares during the period. AdvisorShares Investments LLC purchased a new position in Cadence Design Systems during the fourth quarter worth about $469,000. Finally, Impact Partnership Wealth LLC lifted its position in Cadence Design Systems by 73.5% during the fourth quarter. Impact Partnership Wealth LLC now owns 1,015 shares of the software maker's stock worth $317,000 after buying an additional 430 shares during the period. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Cadence Design Systems Stock Performance

Cadence Design Systems stock opened at $374.93 on Friday. The stock's 50-day moving average is $321.23 and its 200-day moving average is $312.80. The company has a market cap of $103.41 billion, a price-to-earnings ratio of 87.40, a price-to-earnings-growth ratio of 4.44 and a beta of 1.13. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.47 and a quick ratio of 1.32. Cadence Design Systems, Inc. has a 12 month low of $262.75 and a 12 month high of $383.80.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.91 by $0.05. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The business had revenue of $1.47 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same quarter last year, the firm earned $1.57 earnings per share. The company's revenue for the quarter was up 18.6% compared to the same quarter last year. 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. Equities analysts anticipate that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Anirudh Devgan sold 51,887 shares of the stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $370.00, for a total value of $19,198,190.00. Following the completion of the sale, the chief executive officer owned 303,525 shares in the company, valued at approximately $112,304,250. This trade represents a 14.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 1,071 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $345.06, for a total value of $369,559.26. Following the completion of the sale, the vice president owned 32,181 shares of the company's stock, valued at approximately $11,104,375.86. This trade represents a 3.22% 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. In the last quarter, insiders have sold 93,138 shares of company stock valued at $32,492,540. Company insiders own 0.49% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the company. Citigroup raised their price objective on Cadence Design Systems from $385.00 to $400.00 and gave the stock a "buy" rating in a report on Wednesday, April 29th. Needham & Company LLC restated a "buy" rating and issued a $400.00 price objective on shares of Cadence Design Systems in a report on Tuesday, April 28th. Piper Sandler raised their price objective on Cadence Design Systems from $319.00 to $325.00 and gave the stock a "neutral" 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. Finally, Stifel Nicolaus set a $395.00 price objective on Cadence Design Systems in a report on Wednesday, February 18th. Fourteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, Cadence Design Systems 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: CDNS’s chart recently flashed a golden cross, with the 50-day moving average moving above the 200-day moving average. Traders often view this as a bullish technical signal that can suggest improving momentum and may attract additional buying. Cadence Design Systems (CDNS)'s Technical Outlook is Bright After Key Golden Cross
• Positive Sentiment: The company continues to benefit from strong fundamentals, including a recent earnings beat and upbeat guidance, which supports confidence in the stock’s longer-term outlook. Shares Fall, Targets Rise—Markets and Analysts Diverge on Synopsys (CDNS)
• Positive Sentiment: Cadence announced a partnership with Samsung to deliver a signoff-ready platform for AI infrastructure, reinforcing its role in the AI and semiconductor design ecosystem. Cadence, Samsung partner to deliver signoff-ready platform for AI infrastructure
• Neutral Sentiment: CEO Anirudh Devgan disclosed the sale of 51,887 shares under a pre-arranged 10b5-1 trading plan. While insider selling can pressure sentiment, the automated plan makes it less alarming than a discretionary sale. Cadence Design Systems NASDAQ: CDNS CEO Sells $19,198,190.00 in Stock
• Negative Sentiment: Some investors may view the stock’s elevated valuation as a risk, since CDNS already trades at a premium multiple after a strong run, which can limit upside if growth cools. Cadence Design Systems stock and company information

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.

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