Cadence Design Systems, Inc. $CDNS Stock: Fragasso Financial Advisors Inc Lowers Position

Key Points

• Fragasso Financial Advisors cut its Cadence Design Systems position by 67.2% in the third quarter, leaving it with 1,903 shares valued at approximately $671,000. Institutional investors and hedge funds still own 84.85% of CDNS.
• Cadence insiders sold 6,960 shares worth $2.19 million over the past 90 days, while insiders own just 0.49% of the company. The disclosed director sales were conducted under pre-arranged Rule 10b5-1 trading plans.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $404.14. Cadence recently exceeded quarterly EPS expectations and reported 24.2% year-over-year revenue growth, though its premium valuation and broader weakness in semiconductor-related stocks remain risks.

Fragasso Financial Advisors Inc cut its position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 67.2% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,903 shares of the software maker's stock after selling 3,891 shares during the quarter. Fragasso Financial Advisors Inc's holdings in Cadence Design Systems were worth $671,000 at the end of the most recent quarter.

A number of other institutional investors have also modified their holdings of CDNS. Avalon Trust Co purchased a new position in shares of Cadence Design Systems during the second quarter valued at approximately $30,000. Fiduciary Financial Advisors acquired a new stake in Cadence Design Systems during the second quarter worth approximately $31,000. University of Texas Texas AM Investment Management Co. acquired a new stake in Cadence Design Systems during the fourth quarter worth approximately $28,000. Arlington Trust Co LLC grew its stake in Cadence Design Systems by 154.3% in the 2nd quarter. Arlington Trust Co LLC now owns 89 shares of the software maker's stock worth $33,000 after acquiring an additional 54 shares during the period. Finally, Burkett Financial Services LLC purchased a new stake in Cadence Design Systems in the 3rd quarter worth approximately $30,000. Institutional investors and hedge funds own 84.85% of the company's stock.

Insider Activity at Cadence Design Systems

In other Cadence Design Systems news, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of Cadence Design Systems stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $350.07, for a total value of $437,587.50. Following the transaction, the director owned 39,544 shares in the company, valued at $13,843,168.08. This trade represents a 3.06% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita Brennan sold 180 shares of Cadence Design Systems stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $285.51, for a total transaction of $51,391.80. Following the completion of the transaction, the director owned 7,824 shares in the company, valued at approximately $2,233,830.24. This trade represents a 2.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 6,960 shares of company stock worth $2,185,879. Company insiders own 0.49% of the company's stock.

Analyst Ratings Changes

Several research analysts have weighed in on CDNS shares. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $420.00 price target (up from $400.00) on shares of Cadence Design Systems in a report on Wednesday, October 7th. Oppenheimer reissued a "market perform" rating and set a $300.00 price target (up from $275.00) on shares of Cadence Design Systems in a research note on Tuesday, July 28th. Needham & Company LLC restated a "buy" rating and set a $400.00 price objective on shares of Cadence Design Systems in a report on Tuesday, July 28th. Bank of America lifted their price objective on Cadence Design Systems from $400.00 to $420.00 and gave the company a "buy" rating in a research report on Tuesday, July 28th. Finally, FBN Securities started coverage on Cadence Design Systems in a research report on Friday, September 11th. They issued an "outperform" rating and a $375.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, Cadence Design Systems has a consensus rating of "Moderate Buy" and an average target price of $404.14.

Cadence Design Systems Trading Down 4.1%

Shares of CDNS stock opened at $334.20 on Wednesday. The firm's 50-day simple moving average is $319.68 and its 200-day simple moving average is $338.26. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.53. Cadence Design Systems, Inc. has a 1-year low of $262.75 and a 1-year high of $416.69. The firm has a market cap of $92.04 billion, a P/E ratio of 56.56, a PEG ratio of 3.73 and a beta of 1.13.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.05 by $0.06. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The business had revenue of $1.58 billion for the quarter, compared to analysts' expectations of $1.58 billion. During the same period last year, the company earned $1.65 earnings per share. The company's quarterly revenue was up 24.2% on a year-over-year basis. 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. As a group, equities analysts forecast that Cadence Design Systems, Inc. will post 6.41 EPS for the current year.

Cadence Design Systems News Roundup

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

• Positive Sentiment: Erste Group Bank raised its FY2026 EPS estimate slightly to $6.40 from $6.39, broadly in line with the $6.41 consensus forecast. Erste Group Bank estimate update
• Positive Sentiment: Cadence’s latest quarterly results remained strong, with revenue of approximately $1.584 billion, record backlog of $8.1 billion and increased full-year 2026 guidance. The company is also scheduled to report third-quarter results on October 26. Cadence stock rotation analysis
• Neutral Sentiment: Semiconductor equipment and chip-design shares broadly weakened after a strong AI-driven run, with peers including Applied Materials, Lam Research and KLA also declining. This indicates sector-wide profit-taking rather than a Cadence-specific operational shock. Semiconductor equipment stocks slide
• Negative Sentiment: Cadence trades at a premium valuation, making CDNS more vulnerable to risk reduction in AI- and semiconductor-exposed software names. Synopsys also traded lower, reinforcing the broader electronic-design-automation selloff. Cadence valuation and sector analysis
• Negative Sentiment: One analysis argues that Cadence’s customers may be gaining negotiating leverage, potentially pressuring pricing, margins or future growth. In addition, reported insider activity shows selling with no purchases over the past six months, which may weigh on sentiment. Cadence customer leverage analysis

Cadence Design Systems Profile

Cadence Design Systems, Inc is a technology company that develops electronic design automation (EDA) software, hardware, and semiconductor intellectual property. Its products help engineers design, verify, analyze, and manufacture complex semiconductor chips, printed circuit boards, and electronic systems.

The company's offerings include digital and custom/analog integrated-circuit design tools, functional verification and emulation platforms, semiconductor intellectual property, and system analysis solutions.

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.