Cadence Design Systems, Inc. $CDNS Shares Purchased by Teacher Retirement System of Texas

Key Points

• Teacher Retirement System of Texas boosted its Cadence stake by 28.3%, purchasing 24,918 shares to hold 112,958 shares worth about $35.3 million per its latest 13F filing.
• Institutional ownership is high (84.85%) with large investors like Vanguard, State Street, MFS and Invesco adding to positions, and Wall Street sentiment is broadly positive — consensus rating "Moderate Buy" with an average price target of $377.06.
• Insiders have sold roughly 24,680 shares recently (including CFO John Wall's 21,500-share sale), and the stock has pulled back (down ~5.2%) amid a rich valuation (P/E ~77.4), which could pressure near-term sentiment.

Teacher Retirement System of Texas lifted its position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 28.3% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 112,958 shares of the software maker's stock after purchasing an additional 24,918 shares during the period. Teacher Retirement System of Texas' holdings in Cadence Design Systems were worth $35,308,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in CDNS. Vanguard Group Inc. grew its position in shares of Cadence Design Systems by 1.2% during the third quarter. Vanguard Group Inc. now owns 26,923,317 shares of the software maker's stock worth $9,457,084,000 after buying an additional 327,456 shares in the last quarter. State Street Corp grew its position in shares of Cadence Design Systems by 1.2% during the third quarter. State Street Corp now owns 12,468,162 shares of the software maker's stock worth $4,379,567,000 after buying an additional 149,577 shares in the last quarter. Massachusetts Financial Services Co. MA grew its position in shares of Cadence Design Systems by 16.0% during the third quarter. Massachusetts Financial Services Co. MA now owns 5,314,407 shares of the software maker's stock worth $1,866,739,000 after buying an additional 731,788 shares in the last quarter. Invesco Ltd. grew its position in shares of Cadence Design Systems by 20.4% during the third quarter. Invesco Ltd. now owns 2,942,746 shares of the software maker's stock worth $1,033,669,000 after buying an additional 499,009 shares in the last quarter. Finally, Principal Financial Group Inc. grew its position in shares of Cadence Design Systems by 5.1% during the third quarter. Principal Financial Group Inc. now owns 2,301,781 shares of the software maker's stock worth $808,530,000 after buying an additional 110,794 shares in the last quarter. 84.85% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

CDNS has been the subject of a number of recent analyst reports. Piper Sandler decreased their price target 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. Rosenblatt Securities reiterated a "buy" rating and issued a $360.00 target price on shares of Cadence Design Systems in a research report on Thursday, February 26th. Stifel Nicolaus set a $395.00 target price on Cadence Design Systems in a research report on Wednesday, February 18th. Morgan Stanley decreased their target price on Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating for the company in a research report on Wednesday, February 18th. Finally, Needham & Company LLC raised their price objective on Cadence Design Systems from $390.00 to $400.00 and gave the stock a "buy" rating in a research note on Monday. Fifteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $377.06.

More Cadence Design Systems News

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

• Positive Sentiment: Expanded TSMC alliance — Cadence broadened its collaboration with TSMC to deliver silicon‑proven IP, signoff‑ready flows and AI‑driven design infrastructure for N3/N2/A16/A14 nodes, which should speed advanced AI chip development and improve customer time‑to‑market. Cadence Expands TSMC Alliance to Boost Advanced AI Chip Design
• Positive Sentiment: Deeper NVIDIA partnership — Cadence and NVIDIA expanded work on agentic AI, digital twins and simulation integration, reinforcing Cadence’s role in AI‑driven EDA workflows and potentially widening addressable market for high‑margin software/IP. Cadence And NVIDIA Deepen AI Partnership As Valuation Stays Demanding
• Positive Sentiment: Google collaboration — Cadence is working with Google to optimize its ChipStack AI Super‑Agent with Gemini on Google Cloud, supporting agentic, cloud‑native chip design workflows that could accelerate customer adoption. Alphabet Inc. (GOOGL)’s Google Partners with Cadence to Advance Chip Development
• Positive Sentiment: Analyst bullishness — Needham raised its price target to $400, signaling continued analyst conviction in Cadence’s growth runway from agentic AI and EDA/IP exposure. Needham & Company LLC Raises Cadence Design Systems NASDAQ: CDNS Price Target to $400.00
• Neutral Sentiment: Q1 earnings near — analysts expect Cadence to report results soon; previews point to strong AI‑driven demand and backlog but warn macro and competitive pressures could affect guidance and sentiment. Earnings could be a catalyst either way. Cadence Design to Release Q1 Earnings: Here's What to Expect
• Negative Sentiment: Insider selling — a reported sale of 21,500 shares by John Wall may have heightened near‑term selling pressure and raised caution among some investors. John Wall Sells 21,500 Shares of Cadence Design Systems NASDAQ: CDNS Stock
• Negative Sentiment: Market reaction & valuation concerns — commentary flagged that Cadence’s pullback exceeded the broader market decline today; with a rich valuation (high P/E) and recent run‑up, investors appear to be taking profits ahead of the upcoming report. Cadence Design Systems (CDNS) Suffers a Larger Drop Than the General Market: Key Insights

Insider Activity

In other news, CFO John M. Wall sold 21,500 shares of Cadence Design Systems stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $309.45, for a total transaction of $6,653,175.00. Following the transaction, the chief financial officer owned 86,875 shares in the company, valued at approximately $26,883,468.75. The trade was a 19.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 1,000 shares of Cadence Design Systems stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $297.78, for a total value of $297,780.00. Following the sale, the vice president directly owned 94,137 shares of the company's stock, valued at approximately $28,032,115.86. The trade was a 1.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 24,680 shares of company stock worth $7,579,340. 0.49% of the stock is owned by corporate insiders.

Cadence Design Systems Trading Down 5.2%

NASDAQ:CDNS opened at $314.33 on Friday. Cadence Design Systems, Inc. has a 1 year low of $262.75 and a 1 year high of $376.45. The stock has a market cap of $86.78 billion, a price-to-earnings ratio of 77.42, a PEG ratio of 3.98 and a beta of 1.04. The business has a fifty day moving average of $293.06 and a 200-day moving average of $309.82. The company has a debt-to-equity ratio of 0.45, a quick ratio of 2.67 and a current ratio of 2.86.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings data on Tuesday, February 17th. The software maker reported $1.99 earnings per share for the quarter, beating the consensus estimate 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 return on equity of 29.34% and a net margin of 20.93%.The company's revenue was up 6.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.88 earnings per share. 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 analysts predict that Cadence Design Systems, Inc. will post 6.51 earnings per share for the current year.

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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