Goldman Sachs Group Inc. Lowers Stock Holdings in Cadence Design Systems, Inc. $CDNS

Key Points

• Goldman Sachs reduced its Cadence Design Systems stake by 21.1% in the fourth quarter, selling 698,191 shares and ending with 2.61 million shares valued at about $814.4 million.
• Analysts remain broadly positive on CDNS, with 14 Buy ratings and 3 Hold ratings, and a consensus price target of $384.41 despite some mixed target changes from individual firms.
• Company insiders have also been selling shares: CEO Anirudh Devgan and VP Paul Scannell both trimmed positions under pre-arranged trading plans, and insiders sold a total of 176,046 shares over the last 90 days.

Goldman Sachs Group Inc. trimmed its position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 21.1% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,605,437 shares of the software maker's stock after selling 698,191 shares during the quarter. Goldman Sachs Group Inc. owned 0.96% of Cadence Design Systems worth $814,407,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Y.D. More Investments Ltd purchased a new position in Cadence Design Systems during the 3rd quarter valued at about $26,000. Caitlin John LLC acquired a new stake in Cadence Design Systems in the 3rd quarter valued at about $29,000. Lodestone Wealth Management LLC acquired a new stake in Cadence Design Systems in the 4th quarter valued at about $30,000. Imprint Wealth LLC acquired a new stake in Cadence Design Systems in the 3rd quarter valued at about $31,000. Finally, MidAtlantic Capital Management Inc. acquired a new stake in Cadence Design Systems in the 4th quarter valued at about $32,000. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

CDNS has been the topic of a number of analyst reports. KeyCorp increased their price target on Cadence Design Systems from $405.00 to $425.00 and gave the company an "overweight" rating in a research report on Tuesday, April 28th. Citigroup increased their price target on Cadence Design Systems from $385.00 to $400.00 and gave the company a "buy" rating in a research report on Wednesday, April 29th. Morgan Stanley reduced their price target on Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating on the stock in a research report on Wednesday, February 18th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $360.00 price target on shares of Cadence Design Systems in a research report on Friday, April 24th. Finally, Robert W. Baird increased their price target on Cadence Design Systems from $381.00 to $385.00 and gave the company an "outperform" rating in a research report on Tuesday, April 28th. Fourteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $384.41.

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 stock was sold at an average price of $393.91, for a total transaction of $2,789,276.71. Following the sale, the vice president 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anirudh Devgan sold 25,005 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $415.00, for a total value of $10,377,075.00. Following the sale, the chief executive officer directly owned 253,519 shares in the company, valued at $105,210,385. This trade represents a 8.98% 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. Insiders sold a total of 176,046 shares of company stock worth $65,830,801 over the last 90 days. Insiders own 0.49% of the company's stock.

More Cadence Design Systems News

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

• Positive Sentiment: Cadence continues to draw bullish analyst and investor attention, with coverage noting strong long-term prospects and competitive advantages despite recent relative underperformance. Cadence Design Systems Stock: Is CDNS Underperforming the Technology Sector?
• Positive Sentiment: Recent conference appearances by Cadence executives may reinforce investor interest in the company’s strategy and growth outlook. Cadence Design Systems, Inc. (CDNS) Presents at Bank of America 2026 Global Technology Conference Transcript
• Neutral Sentiment: Cadence’s Richard Gu is scheduled to present at a Nasdaq conference, keeping the company visible to investors but not changing fundamentals by itself. Cadence’s Richard Gu to Present at Nasdaq Conference
• Neutral Sentiment: Valuation-focused coverage compared CDNS with Adobe, suggesting investors are still debating whether the stock’s premium valuation is justified. ADBE or CDNS: Which Is the Better Value Stock Right Now?
• Negative Sentiment: CEO Anirudh Devgan sold shares in two separate transactions, and VP Paul Scannell also sold stock; although both sales were made under pre-arranged 10b5-1 plans, insider selling can still weigh on sentiment. SEC filing for Paul Scannell sale SEC filing for Anirudh Devgan sale
• Negative Sentiment: Recent market coverage noted that CDNS fell more than the broader market in the latest session, reinforcing short-term weakness in the share price. Here's Why Cadence Design Systems (CDNS) Fell More Than Broader Market

Cadence Design Systems Price Performance

Shares of NASDAQ CDNS opened at $408.00 on Thursday. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.47. Cadence Design Systems, Inc. has a fifty-two week low of $262.75 and a fifty-two week high of $416.69. The firm has a market capitalization of $112.53 billion, a PE ratio of 95.11, a price-to-earnings-growth ratio of 4.93 and a beta of 1.15. The stock's 50-day simple moving average is $328.72 and its 200-day simple moving average is $314.72.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share for the quarter, topping the consensus estimate of $1.91 by $0.05. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The business had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.46 billion. During the same quarter last year, the company earned $1.57 EPS. The business's quarterly revenue was up 18.6% on a year-over-year basis. Cadence Design Systems has set its FY 2026 guidance at 7.850-7.950 EPS and its Q2 2026 guidance at 2.020-2.080 EPS. As a group, equities research analysts forecast that Cadence Design Systems, Inc. will post 6.23 EPS for the current fiscal year.

Cadence Design Systems Company Profile

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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