Canada Pension Plan Investment Board Invests $188.90 Million in Cadence Design Systems, Inc. $CDNS

Key Points

• Canada Pension Plan Investment Board acquired 503,294 Cadence Design Systems shares worth approximately $188.9 million, giving it a 0.18% stake. Institutional investors collectively own 84.85% of the company.
• Cadence reported quarterly EPS of $2.11, beating estimates by $0.06, while revenue reached $1.58 billion and increased 24.2% year over year. The company issued fiscal 2026 EPS guidance of $8.05–$8.15.
• Analysts maintain a favorable outlook, with 13 Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $405.69, above the reported share price of $334.68.

Canada Pension Plan Investment Board acquired a new stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 503,294 shares of the software maker's stock, valued at approximately $188,896,000. Canada Pension Plan Investment Board owned about 0.18% of Cadence Design Systems at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also bought and sold shares of the stock. Whipplewood Advisors LLC grew its stake in shares of Cadence Design Systems by 933.3% in the first quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker's stock worth $26,000 after acquiring an additional 84 shares during the period. Brown Lisle Cummings Inc. boosted its holdings in Cadence Design Systems by 860.0% in the first quarter. Brown Lisle Cummings Inc. now owns 96 shares of the software maker's stock worth $27,000 after purchasing an additional 86 shares during the last quarter. University of Texas Texas AM Investment Management Co. bought a new stake in Cadence Design Systems in the 4th quarter worth approximately $28,000. Swiss RE Ltd. purchased a new stake in Cadence Design Systems during the 4th quarter valued at $29,000. Finally, Avalon Trust Co purchased a new position in shares of Cadence Design Systems in the 2nd quarter worth $30,000. Institutional investors own 84.85% of the company's stock.

Cadence Design Systems Trading Up 0.8%

Shares of CDNS stock opened at $334.68 on Thursday. Cadence Design Systems, Inc. has a 12-month low of $262.75 and a 12-month 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's 50-day moving average price is $349.91 and its 200-day moving average price is $332.76. The stock has a market capitalization of $92.17 billion, a price-to-earnings ratio of 66.54, a price-to-earnings-growth ratio of 3.56 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, beating analysts' consensus estimates of $2.05 by $0.06. The company had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.58 billion. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%.The firm's revenue was up 24.2% on a year-over-year basis. During the same period in the prior year, the company earned $1.65 earnings per share. 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. Equities research analysts predict that Cadence Design Systems, Inc. will post 6.4 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of analysts recently commented on the company. Morgan Stanley reiterated an "overweight" rating and set a $400.00 price objective on shares of Cadence Design Systems in a research report on Wednesday, July 29th. Piper Sandler raised their target price on Cadence Design Systems from $325.00 to $349.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 28th. Needham & Company LLC restated a "buy" rating and set a $400.00 target price on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Rosenblatt Securities upped their price target on Cadence Design Systems from $410.00 to $420.00 and gave the stock a "buy" rating in a research report on Tuesday, July 28th. Finally, Citigroup raised their price objective on shares of Cadence Design Systems from $400.00 to $420.00 and gave the company a "buy" rating in a research report on Tuesday, July 28th. Thirteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, Cadence Design Systems currently has a consensus rating of "Moderate Buy" and a consensus price target of $405.69.

Insider Buying and Selling at Cadence Design Systems

In other news, CEO Anirudh Devgan sold 25,005 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $415.00, for a total transaction of $10,377,075.00. Following the completion of the transaction, the chief executive officer directly owned 253,519 shares in the company, valued at approximately $105,210,385. This represents a 8.98% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 7,081 shares of the firm's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $393.91, for a total transaction of $2,789,276.71. Following the completion of the transaction, the vice president directly owned 32,181 shares of the company's stock, valued at approximately $12,676,417.71. This trade represents a 18.04% 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. Over the last ninety days, insiders sold 89,599 shares of company stock worth $35,710,627. Company insiders own 0.49% of the company's stock.

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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