Renaissance Technologies LLC Makes New $44.60 Million Investment in Cadence Design Systems, Inc. $CDNS

Renaissance Technologies LLC acquired a new stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) in the 1st quarter, according to its most recent disclosure with the SEC. The fund acquired 160,520 shares of the software maker's stock, valued at approximately $44,604,000. Renaissance Technologies LLC owned approximately 0.06% of Cadence Design Systems at the end of the most recent reporting period.

A number of other institutional investors have also recently modified their holdings of the stock. Gamco Investors INC. ET AL raised its stake in Cadence Design Systems by 9.6% in the first quarter. Gamco Investors INC. ET AL now owns 16,713 shares of the software maker's stock valued at $4,644,000 after purchasing an additional 1,459 shares in the last quarter. Modern Wealth Management LLC grew its stake in Cadence Design Systems by 38.6% during the first quarter. Modern Wealth Management LLC now owns 1,877 shares of the software maker's stock worth $526,000 after buying an additional 523 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake 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 worth $397,521,000 after buying an additional 999,862 shares in the last quarter. Oak Associates Ltd. OH bought a new position in Cadence Design Systems in the 1st quarter valued at about $7,109,000. Finally, Liberty One Investment Management LLC raised its position in shares of Cadence Design Systems by 15.1% in the 1st quarter. Liberty One Investment Management LLC now owns 1,915 shares of the software maker's stock valued at $532,000 after buying an additional 251 shares in the last quarter. 84.85% of the stock is currently owned by institutional investors.

More Cadence Design Systems News

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

• Positive Sentiment: Cadence reported second-quarter adjusted earnings of $2.11 per share, exceeding the $2.05 consensus estimate and rising from $1.65 a year earlier. Revenue was $1.58 billion, in line with expectations. Cadence Design Systems Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company raised its full-year 2026 outlook, projecting earnings of $8.05-$8.15 per share and revenue of approximately $6.3 billion. The higher forecast indicates management expects continued strength in AI and high-performance computing-related demand. Cadence Raises Annual Forecasts as Demand Booms for AI Chip Design
• Positive Sentiment: Third-quarter 2026 EPS guidance of $2.01-$2.07 was above the reported consensus estimate of $1.84, reinforcing expectations for near-term earnings momentum. Cadence Design Systems Beats Q2 Estimates and Raises 2026 Outlook
• Neutral Sentiment: Cadence’s operating metrics remain solid, including a 28.44% return on equity and 21.18% net margin. The shares remain well above their 52-week low but below the 52-week high, suggesting investors are weighing strong growth against elevated expectations.
• Negative Sentiment: At roughly 79 times earnings and a PEG ratio near 3.9, CDNS trades at a demanding valuation. Any slowdown in AI-related spending or failure to exceed the upgraded forecasts could increase downside risk.

Insider Activity

In other news, VP Paul Scannell sold 7,081 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $393.91, for a total value of $2,789,276.71. Following the completion of the transaction, the vice president directly owned 32,181 shares in the company, valued at approximately $12,676,417.71. This 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 this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita M. Brennan sold 180 shares of the firm's stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $387.45, for a total value of $69,741.00. Following the sale, the director directly owned 8,004 shares in the company, valued at approximately $3,101,149.80. This trade represents a 2.20% 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. In the last quarter, insiders have sold 157,057 shares of company stock valued at $60,272,277. 0.49% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on CDNS. Wells Fargo & Company upped their price target on shares of Cadence Design Systems from $400.00 to $425.00 and gave the stock an "overweight" rating in a report on Tuesday, May 26th. Rosenblatt Securities lifted their price objective on shares of Cadence Design Systems from $375.00 to $410.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Robert W. Baird boosted their price objective on shares of Cadence Design Systems from $381.00 to $385.00 and gave the company an "outperform" rating in a research report on Tuesday, April 28th. Stifel Nicolaus upped their target price on Cadence Design Systems from $395.00 to $432.00 and gave the stock a "buy" rating in a research note on Tuesday, June 9th. Finally, KeyCorp raised their target price on Cadence Design Systems from $405.00 to $425.00 and gave the company an "overweight" rating in a report on Tuesday, April 28th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $393.65.

Cadence Design Systems Stock Up 3.8%

CDNS stock opened at $338.61 on Tuesday. The firm has a 50-day moving average price of $373.77 and a 200-day moving average price of $329.63. 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 1.47, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38. The stock has a market capitalization of $93.40 billion, a P/E ratio of 78.93, a price-to-earnings-growth ratio of 3.86 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 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.06. The company 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 21.18% and a return on equity of 28.44%. The firm's revenue was up 24.2% on a year-over-year basis. During the same period in the previous year, the firm posted $1.65 EPS. 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 anticipate 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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