57,348 Cadence Design Systems, Inc. $CDNS Shares Sold by Smith Group Asset Management LLC

Key Points

• Smith Group Asset Management cut its Cadence stake by 40.9%, selling 57,348 shares and retaining 82,772 shares valued at approximately $27.3 million. Institutional investors and hedge funds collectively own 84.85% of CDNS.
• Cadence reported quarterly earnings of $2.11 per share on $1.63 billion in revenue, exceeding estimates and representing 22% year-over-year revenue growth. Strong AI demand and an approximately $8.2 billion backlog supported a raised full-year growth outlook.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and average price target of $410.05, although the stock’s premium valuation, margin pressure and elevated put-option activity present potential risks.

Smith Group Asset Management LLC lessened its holdings in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 40.9% during the third quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 82,772 shares of the software maker's stock after selling 57,348 shares during the period. Cadence Design Systems accounts for 1.8% of Smith Group Asset Management LLC's holdings, making the stock its 26th biggest holding. Smith Group Asset Management LLC's holdings in Cadence Design Systems were worth $27,330,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. Westfuller Advisors LLC lifted its holdings in Cadence Design Systems by 8.2% during the 1st quarter. Westfuller Advisors LLC now owns 408 shares of the software maker's stock worth $113,000 after buying an additional 31 shares during the period. Cornerstone Planning Group LLC increased its stake in shares of Cadence Design Systems by 32.0% in the first quarter. Cornerstone Planning Group LLC now owns 132 shares of the software maker's stock valued at $37,000 after buying an additional 32 shares during the period. KCM Investment Advisors LLC increased its stake in shares of Cadence Design Systems by 0.4% in the first quarter. KCM Investment Advisors LLC now owns 8,013 shares of the software maker's stock valued at $2,227,000 after buying an additional 32 shares during the period. Fulton Bank N.A. raised its position in shares of Cadence Design Systems by 2.6% during the second quarter. Fulton Bank N.A. now owns 1,296 shares of the software maker's stock worth $486,000 after acquiring an additional 33 shares during the last quarter. Finally, Victory Financial Group LLC raised its position in shares of Cadence Design Systems by 3.1% during the third quarter. Victory Financial Group LLC now owns 1,135 shares of the software maker's stock worth $375,000 after acquiring an additional 34 shares during the last quarter. 84.85% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

CDNS has been the topic of a number of recent analyst reports. Benchmark reaffirmed a "buy" rating on shares of Cadence Design Systems in a research note on Tuesday, July 28th. The Goldman Sachs Group upped their target price on Cadence Design Systems from $410.00 to $470.00 and gave the company a "buy" rating in a report on Monday, July 13th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $420.00 target price (up from $400.00) on shares of Cadence Design Systems in a research report on Wednesday, October 7th. Bank of America raised their price target on shares of Cadence Design Systems from $400.00 to $420.00 and gave the stock a "buy" rating in a report on Tuesday, July 28th. Finally, Oppenheimer restated a "market perform" rating and set a $300.00 price target (up from $275.00) on shares of Cadence Design Systems in a report on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, Cadence Design Systems currently has a consensus rating of "Moderate Buy" and an average target price of $410.05.

Insiders Place Their Bets

In other Cadence Design Systems news, VP Paul Cunningham sold 2,000 shares of Cadence Design Systems stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $324.13, for a total value of $648,260.00. Following the completion of the sale, the vice president directly owned 119,612 shares in the company, valued at approximately $38,769,837.56. The trade was a 1.64% decrease in their ownership of the stock. 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 280 shares of the business's stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $339.00, for a total value of $94,920.00. Following the completion of the transaction, the vice president directly owned 31,720 shares in the company, valued at approximately $10,753,080. This trade represents a 0.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 8,960 shares of company stock worth $2,834,139 in the last quarter. 0.49% of the stock is currently owned by company insiders.

Cadence Design Systems Stock Performance

Shares of CDNS opened at $342.46 on Thursday. The company has a current ratio of 1.74, a quick ratio of 1.53 and a debt-to-equity ratio of 0.36. The stock has a market capitalization of $94.31 billion, a P/E ratio of 68.08, a price-to-earnings-growth ratio of 3.38 and a beta of 1.13. The firm's fifty day simple moving average is $319.69 and its two-hundred day simple moving average is $327.18. Cadence Design Systems, Inc. has a 12 month low of $262.75 and a 12 month high of $416.69.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings results on Monday, October 26th. The software maker reported $2.11 earnings per share 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 firm had revenue of $1.63 billion during the quarter, compared to the consensus estimate of $1.61 billion. During the same period last year, the business posted $1.93 EPS. The business's revenue was up 22.0% compared to the same quarter last year. As a group, analysts predict that Cadence Design Systems, Inc. will post 6.42 EPS for the current year.

Key Stories Impacting Cadence Design Systems

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

• Positive Sentiment: Q3 beat and raised outlook: Cadence reported adjusted earnings of $2.11 per share versus the $2.05 consensus, while revenue increased 22% year over year to $1.63 billion. Management raised its full-year 2026 revenue-growth outlook to 21%, supported by strong customer demand. Cadence Q3 Earnings Beat Estimates on AI Demand, Outlook Raised
• Positive Sentiment: AI momentum and backlog: Record backlog of approximately $8.2 billion, accelerating adoption of AI and agentic-design tools, and growth across electronic design automation, intellectual property and systems design are reinforcing expectations for sustained expansion. Cadence Design Systems: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: New AI product initiative: Cadence introduced its Maestro AI Model Portfolio to support AI “super agents” across semiconductor and system-design workflows, strengthening its positioning in the expanding AI-design software market. Cadence Introduces Maestro AI Model Portfolio
• Positive Sentiment: Analyst support increased: JPMorgan raised its target to $420 from $405 with an overweight rating, while Needham lifted its target to $430 and Baird to $440. Wall Street Zen also upgraded the stock, adding to the positive sentiment following the earnings release. Needham Raises Cadence Price Target
• Neutral Sentiment: Investor focus: Analysts view the earnings beat and raised guidance as occurring early in a potentially significant “agentic AI” opportunity, but investors will continue monitoring how quickly that opportunity converts into revenue and earnings.
• Negative Sentiment: Risk signals remain: Unusually heavy put-option purchases—about 145% above typical daily volume—suggest some investors are hedging or positioning for weakness. Cadence’s premium valuation and reported margin pressure could also encourage profit-taking despite the improved outlook.

About Cadence Design Systems

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.