Cadence Design Systems, Inc. $CDNS Shares Purchased by Factory Mutual Insurance Co.

Key Points

• Factory Mutual Insurance Co. raised its stake in Cadence Design Systems by 4.4% in Q4, acquiring 9,250 shares to hold 220,421 shares worth about $68.9 million (≈0.08% of the company).
• Insiders sold a total of 3,185 shares worth $927,728 over the last quarter — including VP Paul Cunningham and Director Ita M. Brennan — leaving insiders with 1.99% ownership.
• Cadence beat Q4 estimates with $1.99 EPS and $1.44 billion revenue, issued FY2026 EPS guidance of $8.05–8.15, and retains a consensus analyst rating of "Moderate Buy" with a ~$376.50 target.

Factory Mutual Insurance Co. lifted its holdings in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 4.4% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 220,421 shares of the software maker's stock after acquiring an additional 9,250 shares during the period. Factory Mutual Insurance Co. owned approximately 0.08% of Cadence Design Systems worth $68,899,000 as of its most recent SEC filing.

Several other large investors also recently made changes to their positions in the business. Occidental Asset Management LLC increased its position in shares of Cadence Design Systems by 2.3% in the third quarter. Occidental Asset Management LLC now owns 1,321 shares of the software maker's stock worth $464,000 after acquiring an additional 30 shares in the last quarter. Whittier Trust Co. increased its position in shares of Cadence Design Systems by 0.4% in the third quarter. Whittier Trust Co. now owns 7,072 shares of the software maker's stock worth $2,456,000 after acquiring an additional 30 shares in the last quarter. Cornerstone Wealth Group LLC increased its position in shares of Cadence Design Systems by 4.3% in the third quarter. Cornerstone Wealth Group LLC now owns 777 shares of the software maker's stock worth $273,000 after acquiring an additional 32 shares in the last quarter. Spirepoint Private Client LLC increased its position in shares of Cadence Design Systems by 4.6% in the fourth quarter. Spirepoint Private Client LLC now owns 722 shares of the software maker's stock worth $226,000 after acquiring an additional 32 shares in the last quarter. Finally, KRS Capital Management LLC increased its position in shares of Cadence Design Systems by 1.4% in the third quarter. KRS Capital Management LLC now owns 2,425 shares of the software maker's stock worth $852,000 after acquiring an additional 33 shares in the last quarter. Institutional investors and hedge funds own 84.85% of the company's stock.

Insiders Place Their Bets

In other Cadence Design Systems news, VP Paul Cunningham sold 1,000 shares of the stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $297.78, for a total transaction of $297,780.00. Following the transaction, the vice president directly owned 94,137 shares in the company, valued at $28,032,115.86. This represents a 1.05% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Ita M. Brennan sold 180 shares of the stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $295.03, for a total transaction of $53,105.40. Following the transaction, the director owned 7,470 shares in the company, valued at $2,203,874.10. This trade represents a 2.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 3,185 shares of company stock worth $927,728 over the last quarter. 1.99% of the stock is currently owned by insiders.

Cadence Design Systems Price Performance

CDNS opened at $265.66 on Friday. The company has a fifty day simple moving average of $288.42 and a 200 day simple moving average of $312.44. The firm has a market cap of $73.35 billion, a price-to-earnings ratio of 65.43, a PEG ratio of 3.38 and a beta of 1.04. Cadence Design Systems, Inc. has a twelve month low of $247.70 and a twelve month high of $376.45. The company has a current ratio of 2.86, a quick ratio of 2.67 and a debt-to-equity ratio of 0.45.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its quarterly earnings results on Tuesday, February 17th. The software maker reported $1.99 earnings per share for the quarter, beating analysts' consensus estimates of $1.91 by $0.08. The business had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.42 billion. Cadence Design Systems had a net margin of 20.93% and a return on equity of 29.34%. The business's revenue was up 6.2% on a year-over-year basis. During the same period last year, the business earned $1.88 EPS. Cadence Design Systems has set its Q1 2026 guidance at 1.890-1.950 EPS and its FY 2026 guidance at 8.050-8.150 EPS. Equities research analysts expect that Cadence Design Systems, Inc. will post 5.41 EPS for the current fiscal year.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Wells Fargo & Company dropped their price objective on shares of Cadence Design Systems from $410.00 to $375.00 and set an "overweight" rating for the company in a research report on Wednesday, February 18th. Piper Sandler dropped their price objective on shares of Cadence Design Systems from $355.00 to $319.00 and set a "neutral" rating for the company in a research report on Wednesday, February 18th. Stifel Nicolaus set a $395.00 price objective on shares of Cadence Design Systems in a research report on Wednesday, February 18th. Rosenblatt Securities reaffirmed a "buy" rating and set a $360.00 price target on shares of Cadence Design Systems in a report on Thursday, February 26th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $390.00 price target on shares of Cadence Design Systems in a report on Wednesday, February 18th. Fifteen 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, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $376.50.

Key Cadence Design Systems News

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

• Positive Sentiment: Q4 results and FY2026 outlook showed solid execution — revenue and non‑GAAP EPS beat expectations, backlog remains substantial and management issued FY2026 revenue and EPS guidance (FY EPS ~$8.05–8.15). This underpins longer‑term growth expectations. Cadence Design Systems falls 5.3% as investors digest FY2026 outlook despite strong Q4 results
• Positive Sentiment: Analyst/industry tailwinds: BNP notes potential upside from Broadcom’s TPU deal with Google/Anthropic that could indirectly boost demand for Cadence tools used in AI chip design. This is a strategic upside case for future cycles. Cadence might benefit from Broadcom's TPU deal with Google, Anthropic: BNP
• Neutral Sentiment: Wall Street positioning remains mixed but skewed positive: multiple buy/overweight ratings and a median 6‑month target well above current levels (median ~$375) support longer‑term upside vs. near‑term volatility. Cadence Design Systems falls 5.3% as investors digest FY2026 outlook despite strong Q4 results
• Neutral Sentiment: Sector/research coverage includes Cadence in broader IP and EDA market reports (Physical IP market research), which points to structural demand but is not an immediate catalyst. Physical Intellectual Property Market Research Report 2026-2032
• Negative Sentiment: Sell‑the‑news / guidance framing: despite the beat, the stock fell as investors parsed the FY2026 outlook and the company’s note that guidance excludes the pending Hexagon D&E acquisition — creating near‑term uncertainty about incremental growth and valuation. Elevated volume accompanied the drop. Cadence Design Systems falls 5.3% as investors digest FY2026 outlook despite strong Q4 results
• Negative Sentiment: Insider selling and recent fund rebalancing headlines: multiple insider sales and notable institutional portfolio adjustments (some large managers trimming exposure) are being highlighted by data providers and can amplify downside pressure on sentiment. Cadence Design Systems falls 5.3% as investors digest FY2026 outlook despite strong Q4 results

Cadence Design Systems 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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