9,016 Cadence Design Systems, Inc. $CDNS Shares Bought by Envestnet Portfolio Solutions Inc.

Key Points

• Envestnet Portfolio Solutions increased its Cadence Design Systems stake by 74.8% in the second quarter, buying 9,016 shares for a total holding of 21,069 shares valued at approximately $7.9 million. Institutional investors collectively own 84.85% of CDNS.
• Cadence reported quarterly EPS of $2.11, exceeding estimates, while revenue rose 24.2% year over year to $1.58 billion. The company also maintained supportive growth prospects through its TSMC partnership, AI-driven design tools and approximately $8.1 billion backlog.
• Wall Street remains broadly positive, with a “Moderate Buy” consensus and an average price target of $403.88, although insiders have sold 5,710 shares worth $1.75 million over the past 90 days and the stock trades at a high P/E ratio of 64.02.

Envestnet Portfolio Solutions Inc. lifted its stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 74.8% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 21,069 shares of the software maker's stock after acquiring an additional 9,016 shares during the quarter. Envestnet Portfolio Solutions Inc.'s holdings in Cadence Design Systems were worth $7,908,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. George Kaiser Family Foundation acquired a new position in shares of Cadence Design Systems during the 2nd quarter worth approximately $725,000. MUFG Securities EMEA plc raised its stake in Cadence Design Systems by 113.9% in the 4th quarter. MUFG Securities EMEA plc now owns 11,159 shares of the software maker's stock valued at $3,488,000 after acquiring an additional 5,943 shares during the period. Vega Investment Solutions acquired a new stake in Cadence Design Systems during the 2nd quarter valued at $1,957,000. Harvest Fund Management Co. Ltd lifted its holdings in Cadence Design Systems by 16.7% during the 4th quarter. Harvest Fund Management Co. Ltd now owns 21,945 shares of the software maker's stock valued at $6,858,000 after purchasing an additional 3,133 shares during the last quarter. Finally, Osmosis Investment Management UK Ltd bought a new position in Cadence Design Systems during the second quarter worth $5,238,000. Institutional investors own 84.85% of the company's stock.

More Cadence Design Systems News

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

• Positive Sentiment: Expanded TSMC partnership supports growth prospects: Cadence announced certified tools for Taiwan Semiconductor Manufacturing’s advanced A14 process, along with UALink and silicon-proven intellectual property for TSMC’s N3P and N2P technologies. The collaboration targets AI, high-performance computing, agentic-AI chip design and 3D-IC workflows, strengthening Cadence’s position in next-generation chip development. Cadence Collaborates With TSMC to Deliver Certified Tool Solutions
• Positive Sentiment: AI design-agent momentum is attracting investor interest: Cadence’s new RTL Generation Agent and ChipStack AI Super Agent are designed to automate chip design and optimization. Early evaluations cited by Zacks indicated 24% lower area and 18% lower power, while Cadence has highlighted customer validation and expected fourth-quarter availability. Cadence's New RTL Generation Agent Could Reshape AI-Driven Chip Design
• Positive Sentiment: Fundamental visibility remains supportive: Cadence previously reported record backlog of approximately $8.1 billion and raised its full-year 2026 outlook. Strong demand from semiconductor companies, hyperscalers and custom-silicon customers reinforces the view that AI infrastructure spending can support future revenue.
• Neutral Sentiment: Options-market activity is drawing attention, but the available report does not identify a definitive bullish or bearish positioning signal. Reported short-interest data showing zero shares also appears potentially incomplete or anomalous, limiting its usefulness.
• Negative Sentiment: Insider-trading data shows executives have recorded multiple open-market sales and no purchases during the past six months. These transactions may reflect compensation or diversification, but they could temper bullish sentiment, particularly given CDNS’s elevated valuation.

Cadence Design Systems Trading Up 4.2%

Shares of Cadence Design Systems stock opened at $322.00 on Friday. The firm has a 50-day moving average of $317.72 and a 200-day moving average of $333.37. The stock has a market cap of $88.68 billion, a PE ratio of 64.02, a PEG ratio of 3.25 and a beta of 1.14. 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.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released 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 net margin of 23.60% and a return on equity of 27.98%. The business had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.58 billion. During the same period last year, the firm earned $1.65 earnings per share. Cadence Design Systems's revenue for the quarter was up 24.2% compared to the same quarter last year. 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. As a group, sell-side analysts forecast that Cadence Design Systems, Inc. will post 6.4 EPS for the current year.

Insider Buying and Selling

In related news, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the business's stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $320.88, for a total value of $401,100.00. Following the completion of the transaction, the director owned 40,794 shares of the company's stock, valued at $13,089,978.72. The trade was a 2.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita M. Brennan sold 180 shares of the company's stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $285.51, for a total transaction of $51,391.80. Following the sale, the director directly owned 7,824 shares of the company's stock, valued at $2,233,830.24. This represents a 2.25% 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 ninety days, insiders have sold 5,710 shares of company stock valued at $1,748,292. 0.49% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

CDNS has been the topic of several research reports. Bank of America upped their price objective on shares of Cadence Design Systems from $400.00 to $420.00 and gave the company a "buy" rating in a report on Tuesday, July 28th. Citigroup raised their target price on shares of Cadence Design Systems from $400.00 to $420.00 and gave the stock a "buy" rating in a research note on Tuesday, July 28th. Benchmark reaffirmed a "buy" rating on shares of Cadence Design Systems in a report on Tuesday, July 28th. KeyCorp reiterated an "overweight" rating on shares of Cadence Design Systems in a research note on Tuesday, July 28th. Finally, Robert W. Baird increased their price target on shares of Cadence Design Systems from $415.00 to $420.00 and gave the company an "outperform" rating in a report on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $403.88.

About Cadence Design Systems

Cadence Design Systems, Inc is a technology company that develops electronic design automation (EDA) software, hardware and semiconductor intellectual property (IP). Its products help engineers design, verify and analyze integrated circuits, printed circuit boards and complete electronic systems.

The company offers solutions spanning digital and custom IC design, functional verification, digital and analog simulation, emulation and prototyping, system analysis, and 3D computational fluid dynamics.

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