Cadence Design Systems, Inc. $CDNS Stock: Asset Management One Co. Ltd. Raises Holdings

Key Points

• Institutional ownership increased: Asset Management One raised its Cadence Design Systems stake by 2.8% to 157,371 shares, while institutional investors collectively own 84.85% of the company.
• Quarterly results beat expectations: Cadence reported adjusted EPS of $2.11 versus the $2.05 consensus and revenue of $1.63 billion, up 22% year over year. The company also raised its full-year 2026 revenue-growth outlook to 21%, supported by AI demand and an approximately $8.2 billion backlog.
• Analysts remain positive, though valuation is elevated: The stock has a “Moderate Buy” consensus rating with an average price target of $410.05, while shares traded near $342.46 and carried a P/E ratio above 68. Recent insider transactions were sales conducted under pre-arranged trading plans.

Asset Management One Co. Ltd. raised its position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 2.8% in the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 157,371 shares of the software maker's stock after acquiring an additional 4,214 shares during the period. Asset Management One Co. Ltd. owned approximately 0.06% of Cadence Design Systems worth $51,962,000 at the end of the most recent quarter.

A number of other institutional investors also recently made changes to their positions in the company. Assenagon Asset Management S.A. grew its position in shares of Cadence Design Systems by 1,097.5% in the third quarter. Assenagon Asset Management S.A. now owns 2,818,141 shares of the software maker's stock valued at $930,522,000 after purchasing an additional 2,582,812 shares during the last quarter. Legal & General Group Plc acquired a new stake in Cadence Design Systems during the 2nd quarter worth approximately $702,615,000. Jupiter Topco LLC acquired a new stake in Cadence Design Systems during the 2nd quarter worth approximately $688,746,000. Bank of New York Mellon Corp acquired a new stake in Cadence Design Systems during the 2nd quarter worth approximately $607,350,000. Finally, Deutsche Bank AG bought a new stake in Cadence Design Systems in the 2nd quarter valued at $532,338,000. Institutional investors own 84.85% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have commented on CDNS shares. KeyCorp reaffirmed an "overweight" rating on shares of Cadence Design Systems in a report on Tuesday. Mizuho set a $400.00 price objective on Cadence Design Systems in a research report on Tuesday. JPMorgan Chase & Co. lifted their target price on Cadence Design Systems from $405.00 to $420.00 and gave the stock an "overweight" rating in a report on Tuesday. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $420.00 target price (up from $400.00) on shares of Cadence Design Systems in a research report on Wednesday, October 7th. Finally, Rosenblatt Securities restated a "buy" rating and issued a $420.00 price target on shares of Cadence Design Systems in a research note on Friday, October 23rd. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $410.05.

Cadence Design Systems Trading Down 0.2%

Shares of CDNS stock opened at $342.46 on Thursday. The stock has a market cap of $94.31 billion, a P/E ratio of 68.08, a price-to-earnings-growth ratio of 3.38 and a beta of 1.13. 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 stock has a 50 day simple moving average of $319.69 and a 200 day simple moving average of $327.18.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings data on Monday, October 26th. The software maker reported $2.11 EPS for the quarter, topping analysts' consensus estimates of $2.05 by $0.06. The firm had revenue of $1.63 billion for the quarter, compared to analyst estimates of $1.61 billion. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%. The company's revenue was up 22.0% on a year-over-year basis. During the same quarter last year, the company earned $1.93 EPS. On average, research analysts predict that Cadence Design Systems, Inc. will post 6.42 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, VP Paul Scannell sold 280 shares of the stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $339.00, for a total transaction of $94,920.00. Following the sale, the vice president directly owned 31,720 shares of the company's stock, valued at approximately $10,753,080. This represents a 0.88% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita Brennan sold 180 shares of the firm's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $285.51, for a total value of $51,391.80. Following the completion of the transaction, the director owned 7,824 shares in the company, valued at $2,233,830.24. The trade was a 2.25% 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. In the last quarter, insiders have sold 8,960 shares of company stock valued at $2,834,139. 0.49% of the stock is owned by insiders.

Cadence Design Systems News Summary

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

• Positive Sentiment: Q3 beat and raised outlook: Cadence reported adjusted earnings of $2.11 per share versus the $2.05 consensus, while revenue increased 22% year over year to $1.63 billion. Management raised its full-year 2026 revenue-growth outlook to 21%, supported by strong customer demand. Cadence Q3 Earnings Beat Estimates on AI Demand, Outlook Raised
• Positive Sentiment: AI momentum and backlog: Record backlog of approximately $8.2 billion, accelerating adoption of AI and agentic-design tools, and growth across electronic design automation, intellectual property and systems design are reinforcing expectations for sustained expansion. Cadence Design Systems: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: New AI product initiative: Cadence introduced its Maestro AI Model Portfolio to support AI “super agents” across semiconductor and system-design workflows, strengthening its positioning in the expanding AI-design software market. Cadence Introduces Maestro AI Model Portfolio
• Positive Sentiment: Analyst support increased: JPMorgan raised its target to $420 from $405 with an overweight rating, while Needham lifted its target to $430 and Baird to $440. Wall Street Zen also upgraded the stock, adding to the positive sentiment following the earnings release. Needham Raises Cadence Price Target
• Neutral Sentiment: Investor focus: Analysts view the earnings beat and raised guidance as occurring early in a potentially significant “agentic AI” opportunity, but investors will continue monitoring how quickly that opportunity converts into revenue and earnings.
• Negative Sentiment: Risk signals remain: Unusually heavy put-option purchases—about 145% above typical daily volume—suggest some investors are hedging or positioning for weakness. Cadence’s premium valuation and reported margin pressure could also encourage profit-taking despite the improved outlook.

Cadence Design Systems Company Profile

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.

Want to see what other hedge funds are holding CDNS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.