Empowered Funds LLC Buys 16,970 Shares of Cadence Design Systems, Inc. $CDNS

Key Points

• Empowered Funds LLC increased its Cadence Design Systems stake by 77.2% in the first quarter, purchasing 16,970 additional shares and bringing its holdings to 38,948 shares valued at approximately $10.8 million. Institutional investors collectively own 84.85% of CDNS.
• Cadence exceeded second-quarter 2026 earnings expectations, reporting adjusted EPS of $2.11 versus $2.05 expected, while revenue rose 24.2% year over year to $1.58 billion. Record backlog of roughly $8.1 billion and raised full-year guidance point to continued AI and semiconductor-design demand.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $405.69, but CDNS trades at a rich valuation—around 54 to 66 times earnings—and insiders sold $56.4 million of stock over the past three months.

Empowered Funds LLC increased its stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 77.2% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 38,948 shares of the software maker's stock after buying an additional 16,970 shares during the period. Empowered Funds LLC's holdings in Cadence Design Systems were worth $10,822,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. University of Texas Texas AM Investment Management Co. bought a new stake in shares of Cadence Design Systems during the fourth quarter valued at approximately $28,000. Imprint Wealth LLC purchased a new stake in shares of Cadence Design Systems in the third quarter valued at approximately $31,000. Whipplewood Advisors LLC grew its stake in 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 purchasing an additional 84 shares in the last quarter. Swiss RE Ltd. purchased a new position in Cadence Design Systems during the 4th quarter worth $29,000. Finally, Brown Lisle Cummings Inc. increased its holdings in Cadence Design Systems by 860.0% during the 1st 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 period. Institutional investors own 84.85% of the company's stock.

Key Stories Impacting Cadence Design Systems

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

• Positive Sentiment: Cadence exceeded second-quarter 2026 earnings expectations, reporting $2.11 in adjusted EPS versus the $2.05 consensus estimate. Revenue increased 24.2% year over year to $1.58 billion, supported by demand for AI and advanced-chip design tools. Cadence Q2 Earnings Top Estimates on AI Demand, Backlog Hits $8.1B
• Positive Sentiment: Record backlog of approximately $8.1 billion provides visibility into future sales and was cited by analysts as evidence that agentic AI and broader semiconductor investment can extend Cadence’s growth. Cadence rises after Q2 beat as analysts highlight record backlog
• Positive Sentiment: Management raised its full-year 2026 outlook to $8.05–$8.15 in EPS and issued third-quarter guidance of $2.01–$2.07, reinforcing confidence in continued demand.
• Positive Sentiment: Several Wall Street firms remain constructive: Needham reiterated a Buy rating, while Rosenblatt raised its price target to $420. Baird, Bank of America and Piper Sandler analysts also anticipate further appreciation. Rosenblatt raises Cadence price target
• Neutral Sentiment: The earnings call and related research suggest growth is broadening beyond AI, potentially supporting another earnings-driven advance if Cadence converts its backlog into revenue. Cadence earnings call signals AI-driven surge
• Negative Sentiment: At roughly 54 times earnings, CDNS remains expensive, and some commentary warns that the share price already discounts years of strong execution. This rich valuation could limit upside or amplify pressure if growth slows. Cadence keeps winning, but the share price is years ahead

Analyst Ratings Changes

Several brokerages have weighed in on CDNS. Wells Fargo & Company upped their target price on Cadence Design Systems from $400.00 to $425.00 and gave the stock an "overweight" rating in a report on Tuesday, May 26th. Bank of America raised their price target on Cadence Design Systems from $400.00 to $420.00 and gave the company a "buy" rating in a research note on Tuesday. Weiss Ratings restated a "hold (c)" rating on shares of Cadence Design Systems in a report on Thursday, July 2nd. Benchmark reaffirmed a "buy" rating on shares of Cadence Design Systems in a research note on Tuesday. Finally, Rosenblatt Securities increased their target price on shares of Cadence Design Systems from $410.00 to $420.00 and gave the stock a "buy" rating in a report on Tuesday. Thirteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $405.69.

Cadence Design Systems Trading Up 0.0%

Shares of NASDAQ:CDNS opened at $332.82 on Friday. The company has a market capitalization of $91.80 billion, a PE ratio of 66.17, a P/E/G ratio of 3.79 and a beta of 1.15. The company has a current ratio of 1.74, a quick ratio of 1.32 and a debt-to-equity ratio of 0.36. Cadence Design Systems, Inc. has a 12-month low of $262.75 and a 12-month high of $416.69. The business's fifty day simple moving average is $373.04 and its 200-day simple moving average is $329.95.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 earnings per share for the quarter, topping 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 analysts' expectations of $1.58 billion. During the same period in the prior year, the business posted $1.65 EPS. The firm'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 research analysts predict that Cadence Design Systems, Inc. will post 6.39 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, VP Paul Scannell sold 7,081 shares of the firm's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $393.91, for a total value of $2,789,276.71. Following the sale, the vice president directly owned 32,181 shares in the company, valued at approximately $12,676,417.71. This trade represents a 18.04% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 2,000 shares of Cadence Design Systems stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $391.00, for a total transaction of $782,000.00. Following the completion of the transaction, the vice president directly owned 126,586 shares in the company, valued at approximately $49,495,126. The trade was a 1.56% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 145,557 shares of company stock valued at $56,375,287 in the last three months. 0.49% of the stock is currently owned by insiders.

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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