Cadence Design Systems, Inc. $CDNS Stock Sold by Axecap Investments LLC

Key Points

• Axecap Investments cut its Cadence Design Systems position by 67.7% in the third quarter, selling 9,377 shares and retaining 4,480 shares valued at approximately $1.48 million.
• Institutional ownership remains high at 84.85%, with investors including Van ECK Associates, UBS Asset Management and Assenagon increasing their stakes during recent quarters.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $404.14 price target, although Cadence faces valuation, export-restriction and acquisition-integration risks.

Axecap Investments LLC reduced its position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 67.7% in the third quarter, according to its most recent filing with the SEC. The fund owned 4,480 shares of the software maker's stock after selling 9,377 shares during the quarter. Axecap Investments LLC's holdings in Cadence Design Systems were worth $1,479,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Van ECK Associates Corp raised its stake in Cadence Design Systems by 21.8% during the second quarter. Van ECK Associates Corp now owns 4,889,765 shares of the software maker's stock valued at $1,835,227,000 after purchasing an additional 874,392 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Cadence Design Systems by 1.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,385,655 shares of the software maker's stock valued at $1,270,704,000 after purchasing an additional 48,937 shares during the last quarter. Assenagon Asset Management S.A. grew its stake in shares of Cadence Design Systems by 1,097.5% in the 3rd quarter. Assenagon Asset Management S.A. now owns 2,818,141 shares of the software maker's stock worth $930,522,000 after buying an additional 2,582,812 shares in the last quarter. Legal & General Group Plc purchased a new position in shares of Cadence Design Systems in the 2nd quarter worth $702,615,000. Finally, Jupiter Topco LLC purchased a new position in shares of Cadence Design Systems in the 2nd quarter worth $688,746,000. 84.85% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Cadence Design Systems

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

Insider Transactions at Cadence Design Systems

In related news, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of Cadence Design Systems stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $350.07, for a total value of $437,587.50. Following the completion of the sale, the director directly owned 39,544 shares in the company, valued at $13,843,168.08. The trade was a 3.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 2,000 shares of the company's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $277.12, for a total transaction of $554,240.00. Following the completion of the sale, the vice president directly owned 121,793 shares of the company's stock, valued at approximately $33,751,276.16. This trade represents a 1.62% decrease in their ownership of the stock. 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 have sold 8,960 shares of company stock worth $2,834,139. Corporate insiders own 0.49% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. KeyCorp restated an "overweight" rating on shares of Cadence Design Systems in a report on Tuesday, July 28th. FBN Securities initiated coverage on shares of Cadence Design Systems in a report on Friday, September 11th. They issued an "outperform" rating and a $375.00 price target for the company. Rothschild & Co Redburn increased their price target on shares of Cadence Design Systems from $385.00 to $395.00 and gave the company a "buy" rating in a report on Tuesday, July 28th. 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 research report on Wednesday, October 7th. Finally, Needham & Company LLC reissued a "buy" rating and set a $400.00 price objective on shares of Cadence Design Systems in a research note on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $404.14.

Cadence Design Systems Stock Performance

Shares of Cadence Design Systems stock opened at $319.87 on Wednesday. The stock's fifty day moving average is $318.58 and its two-hundred day moving average is $339.93. The company has a market capitalization of $88.09 billion, a PE ratio of 63.59, a price-to-earnings-growth ratio of 3.49 and a beta of 1.13. The company has a quick ratio of 1.53, a current ratio of 1.74 and a debt-to-equity ratio of 0.36. Cadence Design Systems, Inc. has a 52 week low of $262.75 and a 52 week high of $416.69.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings results 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 firm had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.58 billion. During the same quarter in the previous year, the business earned $1.65 earnings per share. Cadence Design Systems'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, analysts expect that Cadence Design Systems, Inc. will post 6.41 earnings per share for the current year.

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.

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