Cadence Design Systems, Inc. $CDNS Shares Bought by Employees Retirement System of Texas

Key Points

• Employees Retirement System of Texas increased its Cadence Design Systems stake by 12.4% in the fourth quarter, buying 31,628 additional shares and bringing its total holdings to 287,581 shares worth about $89.9 million.
• Cadence reported strong quarterly results, with earnings per share of $1.96 and revenue of $1.47 billion, both slightly above expectations. Revenue rose 18.6% year over year, and the company also issued FY2026 and Q2 2026 guidance.
• Analyst sentiment remains bullish, with several firms raising price targets and the stock carrying a Moderate Buy consensus. However, there has also been notable insider selling, including recent share sales by the CFO and a vice president.

Employees Retirement System of Texas grew its holdings in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 12.4% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 287,581 shares of the software maker's stock after purchasing an additional 31,628 shares during the quarter. Employees Retirement System of Texas owned about 0.11% of Cadence Design Systems worth $89,892,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also made changes to their positions in CDNS. Y.D. More Investments Ltd acquired a new position in Cadence Design Systems during the third quarter worth $26,000. Caitlin John LLC acquired a new stake in shares of Cadence Design Systems in the 3rd quarter worth $29,000. Lodestone Wealth Management LLC purchased a new position in shares of Cadence Design Systems during the 4th quarter worth $30,000. Imprint Wealth LLC purchased a new position in shares of Cadence Design Systems during the 3rd quarter worth $31,000. Finally, Strategic Wealth Investment Group LLC acquired a new position in shares of Cadence Design Systems during the 2nd quarter valued at about $32,000. 84.85% of the stock is currently owned by institutional investors and hedge funds.

Cadence Design Systems Stock Up 2.2%

Shares of CDNS opened at $381.75 on Wednesday. The firm has a market cap of $105.29 billion, a P/E ratio of 88.99, a price-to-earnings-growth ratio of 4.42 and a beta of 1.13. Cadence Design Systems, Inc. has a 12-month low of $262.75 and a 12-month high of $383.24. The company's 50-day moving average price is $316.29 and its 200 day moving average price is $311.67. The company has a current ratio of 1.47, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share for the quarter, topping the consensus estimate of $1.91 by $0.05. The company had revenue of $1.47 billion during the quarter, compared to analyst estimates of $1.46 billion. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. 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. On average, sell-side analysts forecast that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on CDNS shares. Wells Fargo & Company raised their price objective on shares of Cadence Design Systems from $400.00 to $425.00 and gave the stock an "overweight" rating in a research report on Tuesday. Piper Sandler boosted their target price on shares of Cadence Design Systems from $319.00 to $325.00 and gave the company a "neutral" rating in a report on Tuesday, April 28th. Citigroup increased their price target on shares of Cadence Design Systems from $385.00 to $400.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. KeyCorp raised their price target on shares of Cadence Design Systems from $405.00 to $425.00 and gave the stock an "overweight" rating in a report on Tuesday, April 28th. Finally, Morgan Stanley reduced their price target on shares of Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating on the stock in a research report on Wednesday, February 18th. Fourteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $382.06.

Insider Activity at Cadence Design Systems

In related news, CFO John M. Wall sold 5,000 shares of the business's stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $348.71, for a total value of $1,743,550.00. Following the sale, the chief financial officer owned 81,875 shares in the company, valued at approximately $28,550,631.25. The trade was a 5.76% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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 1,071 shares of the stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $345.06, for a total value of $369,559.26. Following the transaction, the vice president directly owned 32,181 shares in the company, valued at approximately $11,104,375.86. The trade was a 3.22% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 41,251 shares of company stock worth $13,294,350 over the last quarter. Company insiders own 0.49% of the company's stock.

About Cadence Design Systems

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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