Liontrust Investment Partners LLP Cuts Stake in Cadence Design Systems, Inc. $CDNS

Key Points

• Liontrust Investment Partners cut its Cadence Design Systems stake by 35% in the first quarter, selling 198,601 shares and retaining 368,175 shares worth approximately $102.3 million. Institutional investors own 84.85% of CDNS.
• Cadence reported quarterly adjusted EPS of $2.11, above the $2.05 consensus, while revenue rose 24.2% year over year to $1.58 billion. Management issued full-year 2026 EPS guidance of $8.05–$8.15.
• Analysts remain broadly positive, with 13 Buy ratings and three Holds and an average price target of $405.69, although the stock’s elevated valuation and recent insider selling could limit upside.

Liontrust Investment Partners LLP cut its holdings in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 35.0% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 368,175 shares of the software maker's stock after selling 198,601 shares during the quarter. Cadence Design Systems makes up about 1.5% of Liontrust Investment Partners LLP's investment portfolio, making the stock its 19th largest position. Liontrust Investment Partners LLP owned approximately 0.13% of Cadence Design Systems worth $102,305,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in CDNS. Norges Bank bought a new stake in shares of Cadence Design Systems in the 4th quarter valued at about $1,352,922,000. J. Stern & Co. LLP lifted its position in shares of Cadence Design Systems by 10,159.3% in the 4th quarter. J. Stern & Co. LLP now owns 2,953,256 shares of the software maker's stock worth $923,129,000 after purchasing an additional 2,924,470 shares during the period. Wellington Management Group LLP boosted its stake in shares of Cadence Design Systems by 218.6% during the fourth quarter. Wellington Management Group LLP now owns 2,553,225 shares of the software maker's stock valued at $798,087,000 after purchasing an additional 1,751,927 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in Cadence Design Systems by 232.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,430,599 shares of the software maker's stock valued at $397,521,000 after buying an additional 999,862 shares during the period. Finally, Scge Management L.P. purchased a new position in Cadence Design Systems during the second quarter valued at approximately $187,663,000. 84.85% of the stock is currently owned by institutional investors.

Insider Transactions at Cadence Design Systems

In related news, Director James D. Plummer sold 1,511 shares of the business's stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $381.34, for a total transaction of $576,204.74. Following the transaction, the director directly owned 23,264 shares in the company, valued at $8,871,493.76. The trade was a 6.10% decrease in their position. The sale was disclosed in a filing 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, VP Paul Cunningham sold 2,000 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $391.00, for a total value of $782,000.00. Following the transaction, the vice president directly owned 126,586 shares in the company, valued at $49,495,126. This represents a 1.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 145,557 shares of company stock worth $56,375,287. 0.49% of the stock is currently owned by corporate insiders.

Cadence Design Systems Trading Up 0.0%

NASDAQ:CDNS opened at $332.82 on Friday. The stock has a market capitalization of $91.80 billion, a price-to-earnings ratio of 66.17, a PEG ratio of 3.79 and a beta of 1.15. Cadence Design Systems, Inc. has a 52 week low of $262.75 and a 52 week high of $416.69. The company has a quick ratio of 1.32, a current ratio of 1.74 and a debt-to-equity ratio of 0.36. The firm has a 50 day moving average of $373.04 and a 200 day moving average of $329.95.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its quarterly 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. The business had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.58 billion. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The business's revenue for the quarter was up 24.2% on a year-over-year basis. During the same period in the previous 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. As a group, sell-side analysts anticipate that Cadence Design Systems, Inc. will post 6.39 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of brokerages recently commented on CDNS. Bank of America boosted their price objective on shares of Cadence Design Systems from $400.00 to $420.00 and gave the stock a "buy" rating in a research note on Tuesday. Rosenblatt Securities lifted their price target on Cadence Design Systems from $410.00 to $420.00 and gave the company a "buy" rating in a report on Tuesday. Piper Sandler lifted their price target on Cadence Design Systems from $325.00 to $349.00 and gave the company a "neutral" rating in a report on Tuesday. KeyCorp reissued an "overweight" rating on shares of Cadence Design Systems in a research report on Tuesday. Finally, Morgan Stanley restated an "overweight" rating and set a $400.00 price objective on shares of Cadence Design Systems in a research note on Wednesday. Thirteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $405.69.

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

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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