Cadence Design Systems, Inc. $CDNS Stake Boosted by IFP Advisors Inc

Key Points

• IFP Advisors increased its Cadence stake by 862.3% in the third quarter, bringing its holdings to 10,172 shares valued at approximately $3.36 million. Institutional investors collectively own 84.85% of CDNS.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $404.14, although some firms maintain neutral views and valuation remains a concern.
• Cadence reported quarterly EPS of $2.11, exceeding estimates, while revenue rose 24.2% year over year to $1.58 billion. Growth is supported by AI and semiconductor-design demand, but investors face risks from premium valuation, export restrictions and acquisition integration.

IFP Advisors Inc increased its stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 862.3% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 10,172 shares of the software maker's stock after buying an additional 9,115 shares during the period. IFP Advisors Inc's holdings in Cadence Design Systems were worth $3,359,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of CDNS. George Kaiser Family Foundation purchased a new stake in Cadence Design Systems in the second quarter worth $725,000. Vega Investment Solutions purchased a new position in Cadence Design Systems during the second quarter valued at $1,957,000. MassMutual Private Wealth & Trust FSB lifted its position in Cadence Design Systems by 65.7% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 26,160 shares of the software maker's stock valued at $8,638,000 after buying an additional 10,376 shares during the period. Osmosis Investment Management UK Ltd purchased a new position in Cadence Design Systems during the second quarter valued at $5,238,000. Finally, Persistent Asset Partners Ltd bought a new stake in shares of Cadence Design Systems during the 2nd quarter valued at $4,170,000. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Key Cadence Design Systems News

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

• Positive Sentiment: Expanding AI and SoC design partnership: Socionext is collaborating with Cadence to apply agentic AI to the physical design of large-scale, advanced-process system-on-chip products. The relationship highlights demand for Cadence’s AI-enabled electronic design automation tools. Socionext Expands Agentic AI to Advanced, Large-Scale SoC Physical Design
• Positive Sentiment: Long-term growth thesis remains intact: Cadence’s deep integration into customer workflows, partnerships with TSMC, Samsung, Google Cloud and NVIDIA, recurring revenue, approximately $8.1 billion backlog and reported 45.5% non-GAAP operating margin support revenue visibility. Rising chip complexity may further increase demand for its design software. Cadence: The Design Bottleneck Is Becoming More Valuable
• Neutral Sentiment: Upcoming earnings are a near-term catalyst: Analysts expect Cadence to release quarterly results shortly, while recent commentary points to earnings growth potential and factors that could support a beat. Investors may remain cautious ahead of the report because guidance and forward demand will be central to the valuation debate. Cadence Earnings Expected to Grow
• Negative Sentiment: Valuation and execution risks are pressuring the shares: Cadence trades at a premium valuation, making the stock sensitive to expectations for growth and earnings. Export restrictions and the integration of recent acquisitions, including Hexagon, are identified as material risks. Cadence: The Design Bottleneck Is Becoming More Valuable
• Negative Sentiment: Cautious analyst stance: Wall Street Zen lowered its rating on CDNS to Hold, adding to investor caution and likely contributing to the stock’s weaker performance despite the company’s favorable growth narrative. Cadence Rating Lowered to Hold

Analyst Ratings Changes

A number of research firms have recently weighed in on CDNS. Benchmark reaffirmed a "buy" rating on shares of Cadence Design Systems in a research report on Tuesday, July 28th. The Goldman Sachs Group increased their price target on shares of Cadence Design Systems from $410.00 to $470.00 and gave the stock a "buy" rating in a research note on Monday, July 13th. Piper Sandler lifted their price target on shares of Cadence Design Systems from $325.00 to $349.00 and gave the company a "neutral" rating in a research report on Tuesday, July 28th. Needham & Company LLC reissued a "buy" rating and set a $400.00 price target on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Finally, FBN Securities began coverage on shares of Cadence Design Systems in a research note on Friday, September 11th. They set an "outperform" rating and a $375.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $404.14.

Insider Buying and Selling

In other news, VP Paul Cunningham sold 2,000 shares of Cadence Design Systems stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $277.12, for a total value of $554,240.00. Following the completion of the transaction, the vice president owned 121,793 shares of the company's stock, valued at $33,751,276.16. The trade was a 1.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita Brennan sold 180 shares of the stock in a transaction dated Thursday, September 10th. The shares were 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 in the company, valued at $2,233,830.24. This trade represents a 2.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 8,960 shares of company stock valued at $2,834,139 over the last ninety days. Insiders own 0.49% of the company's stock.

Cadence Design Systems Stock Performance

Cadence Design Systems stock opened at $319.87 on Wednesday. Cadence Design Systems, Inc. has a twelve month low of $262.75 and a twelve month high of $416.69. The company has a quick ratio of 1.53, a current ratio of 1.74 and a debt-to-equity ratio of 0.36. The company has a market capitalization of $88.09 billion, a P/E ratio of 52.90, a PEG ratio of 3.49 and a beta of 1.13. The stock's 50 day moving average is $318.58 and its 200 day moving average is $339.93.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.05 by $0.06. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%. The business had revenue of $1.58 billion during the quarter, compared to analysts' expectations of $1.58 billion. During the same quarter in the previous year, the business earned $1.65 earnings per share. The firm's quarterly revenue 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. On average, equities research analysts predict that Cadence Design Systems, Inc. will post 6.41 earnings per share for the current fiscal year.

About Cadence Design Systems

Cadence Design Systems, Inc develops computational software, hardware, and semiconductor intellectual property used to design and verify electronic systems and integrated circuits. Its electronic design automation (EDA) solutions support chip development across areas such as digital and custom IC design, functional verification, emulation, prototyping, and system analysis.

The company also provides semiconductor IP, including processor cores, interconnect technologies, memory interfaces, and other building blocks that help customers develop complex chips.

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