Norges Bank Invests $1.35 Billion in Cadence Design Systems, Inc. $CDNS

Key Points

• Norges Bank disclosed a new stake in Cadence Design Systems, buying 4.33 million shares valued at about $1.35 billion, or 1.59% of the company.
• Cadence reported better-than-expected quarterly results, with EPS of $1.96 and revenue of $1.47 billion, and raised guidance for FY 2026 and Q2 2026.
• The stock has a bullish technical backdrop after a golden cross, while analysts remain mostly positive with a consensus rating of Moderate Buy and a target price of $384.41.

Norges Bank acquired a new position in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund acquired 4,328,242 shares of the software maker's stock, valued at approximately $1,352,922,000. Norges Bank owned 1.59% of Cadence Design Systems at the end of the most recent quarter.

Several other large investors have also recently modified their holdings of the stock. Spirepoint Private Client LLC increased its holdings in shares of Cadence Design Systems by 4.6% in the fourth quarter. Spirepoint Private Client LLC now owns 722 shares of the software maker's stock worth $226,000 after buying an additional 32 shares during the period. West Family Investments Inc. increased its holdings in shares of Cadence Design Systems by 2.2% in the third quarter. West Family Investments Inc. now owns 1,559 shares of the software maker's stock worth $548,000 after buying an additional 33 shares during the period. Pinnacle Associates Ltd. increased its holdings in shares of Cadence Design Systems by 3.4% in the third quarter. Pinnacle Associates Ltd. now owns 1,079 shares of the software maker's stock worth $379,000 after buying an additional 35 shares during the period. Global Assets Advisory LLC increased its holdings in shares of Cadence Design Systems by 2.1% in the fourth quarter. Global Assets Advisory LLC now owns 1,726 shares of the software maker's stock worth $540,000 after buying an additional 35 shares during the period. Finally, Bridgewater Advisors Inc. increased its holdings in shares of Cadence Design Systems by 3.0% in the fourth quarter. Bridgewater Advisors Inc. now owns 1,233 shares of the software maker's stock worth $384,000 after buying an additional 36 shares during the period. Hedge funds and other institutional investors own 84.85% of the company's stock.

More Cadence Design Systems News

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

• Positive Sentiment: CDNS’s chart recently flashed a golden cross, with the 50-day moving average moving above the 200-day moving average. Traders often view this as a bullish technical signal that can suggest improving momentum and may attract additional buying. Cadence Design Systems (CDNS)'s Technical Outlook is Bright After Key Golden Cross
• Positive Sentiment: The company continues to benefit from strong fundamentals, including a recent earnings beat and upbeat guidance, which supports confidence in the stock’s longer-term outlook. Shares Fall, Targets Rise—Markets and Analysts Diverge on Synopsys (CDNS)
• Positive Sentiment: Cadence announced a partnership with Samsung to deliver a signoff-ready platform for AI infrastructure, reinforcing its role in the AI and semiconductor design ecosystem. Cadence, Samsung partner to deliver signoff-ready platform for AI infrastructure
• Neutral Sentiment: CEO Anirudh Devgan disclosed the sale of 51,887 shares under a pre-arranged 10b5-1 trading plan. While insider selling can pressure sentiment, the automated plan makes it less alarming than a discretionary sale. Cadence Design Systems NASDAQ: CDNS CEO Sells $19,198,190.00 in Stock
• Negative Sentiment: Some investors may view the stock’s elevated valuation as a risk, since CDNS already trades at a premium multiple after a strong run, which can limit upside if growth cools. Cadence Design Systems stock and company information

Cadence Design Systems Stock Up 0.3%

NASDAQ CDNS opened at $374.93 on Friday. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.47 and a quick ratio of 1.32. The stock has a market capitalization of $103.41 billion, a PE ratio of 87.40, a PEG ratio of 4.44 and a beta of 1.13. Cadence Design Systems, Inc. has a 1 year low of $262.75 and a 1 year high of $383.80. The business's 50-day moving average is $321.23 and its 200 day moving average is $312.80.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.91 by $0.05. The company had revenue of $1.47 billion for the quarter, compared to analysts' expectations of $1.46 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.Cadence Design Systems's quarterly revenue was up 18.6% on a year-over-year basis. During the same period last year, the firm earned $1.57 earnings per share. 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. Sell-side analysts forecast that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current year.

Wall Street Analyst Weigh In

CDNS has been the topic of several analyst reports. Morgan Stanley decreased their price objective on Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating on the stock in a report on Wednesday, February 18th. Berenberg Bank set a $440.00 target price on Cadence Design Systems in a research note on Wednesday. Wells Fargo & Company raised their target price on Cadence Design Systems from $400.00 to $425.00 and gave the stock an "overweight" rating in a research note on Tuesday. Stifel Nicolaus set a $395.00 target price on Cadence Design Systems in a research note on Wednesday, February 18th. Finally, Robert W. Baird raised their target price on Cadence Design Systems from $381.00 to $385.00 and gave the stock an "outperform" rating in a research note on Tuesday, April 28th. Fourteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $384.41.

Insider Buying and Selling at Cadence Design Systems

In other Cadence Design Systems news, CFO John M. Wall sold 5,000 shares of Cadence Design Systems stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $348.71, for a total transaction of $1,743,550.00. Following the sale, the chief financial officer directly owned 81,875 shares of the company's stock, valued at approximately $28,550,631.25. The trade was a 5.76% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 1,071 shares of Cadence Design Systems stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $345.06, for a total value of $369,559.26. Following the sale, the vice president directly owned 32,181 shares in the company, valued at approximately $11,104,375.86. The trade was a 3.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 93,138 shares of company stock worth $32,492,540. 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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