Baird Financial Group Inc. Buys 5,139 Shares of Cadence Design Systems, Inc. $CDNS

Key Points

• Baird Financial Group increased its Cadence Design Systems position by 9.8% in the second quarter, buying 5,139 shares and bringing its holdings to 57,702 shares valued at approximately $21.7 million. Institutional investors collectively own 84.85% of CDNS.
• Cadence reported quarterly EPS of $2.11, beating estimates by $0.06, while revenue reached $1.58 billion and rose 24.2% year over year. The company issued fiscal 2026 EPS guidance of $8.05–$8.15.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $403.88, although some insiders sold shares under pre-arranged trading plans. CDNS recently opened at $289.37, below its 50-day and 200-day moving averages.

Baird Financial Group Inc. increased its position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 9.8% in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 57,702 shares of the software maker's stock after buying an additional 5,139 shares during the quarter. Baird Financial Group Inc.'s holdings in Cadence Design Systems were worth $21,657,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of CDNS. Pinnacle Wealth Management Advisory Group LLC boosted its holdings in shares of Cadence Design Systems by 3.1% in the 1st quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,033 shares of the software maker's stock valued at $287,000 after buying an additional 31 shares during the last quarter. Westfuller Advisors LLC increased its holdings in Cadence Design Systems by 8.2% during the first 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 last quarter. Cornerstone Planning Group LLC raised its position in Cadence Design Systems by 32.0% during the first quarter. Cornerstone Planning Group LLC now owns 132 shares of the software maker's stock worth $37,000 after acquiring an additional 32 shares in the last quarter. KCM Investment Advisors LLC raised its position in Cadence Design Systems by 0.4% during the first quarter. KCM Investment Advisors LLC now owns 8,013 shares of the software maker's stock worth $2,227,000 after acquiring an additional 32 shares in the last quarter. Finally, Fulton Bank N.A. lifted its stake in Cadence Design Systems by 2.6% in the second quarter. Fulton Bank N.A. now owns 1,296 shares of the software maker's stock valued at $486,000 after acquiring an additional 33 shares during the last quarter. Institutional investors and hedge funds own 84.85% of the company's stock.

Cadence Design Systems Stock Performance

Shares of Cadence Design Systems stock opened at $289.37 on Friday. The business has a 50-day moving average price of $332.84 and a two-hundred day moving average price of $333.50. Cadence Design Systems, Inc. has a 1-year low of $262.75 and a 1-year high of $416.69. 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 company has a market cap of $79.69 billion, a P/E ratio of 57.53, a PEG ratio of 3.06 and a beta of 1.14.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, beating the consensus estimate of $2.05 by $0.06. The firm had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.58 billion. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%.The company's quarterly revenue was up 24.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.65 earnings per share. 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, analysts anticipate that Cadence Design Systems, Inc. will post 6.4 EPS for the current year.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the company. Wall Street Zen downgraded Cadence Design Systems from a "buy" rating to a "hold" rating in a report on Saturday. 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. Berenberg Bank set a $440.00 price target on shares of Cadence Design Systems in a research note on Wednesday, May 27th. 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. Finally, Morgan Stanley restated an "overweight" rating and set a $400.00 price objective on shares of Cadence Design Systems in a research report on Wednesday, July 29th. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $403.88.

Insider Activity

In related news, VP Paul Scannell sold 280 shares of the company's stock in a transaction 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. The trade was a 0.88% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $320.88, for a total transaction of $401,100.00. Following the sale, the director directly owned 40,794 shares of the company's stock, valued at $13,089,978.72. The trade was a 2.97% decrease in their position. 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 sold 5,530 shares of company stock worth $1,924,660 in the last three months. Corporate insiders own 0.49% of the company's stock.

Cadence Design Systems Profile

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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