Smith Group Asset Management LLC Increases Stock Holdings in Cadence Design Systems, Inc. $CDNS

Key Points

• Smith Group Asset Management increased its Cadence Design Systems stake by 7.4% in the first quarter, acquiring 9,014 additional shares for a total of 130,269 shares valued at approximately $36.2 million. Institutional investors collectively own 84.85% of CDNS.
• Cadence reported quarterly EPS of $2.11, exceeding the $2.05 consensus estimate, while revenue rose 24.2% year over year to $1.58 billion. Management issued full-year 2026 EPS guidance of $8.05–$8.15, supported by strong AI and semiconductor-design demand.
• Analyst sentiment is generally positive, with a “Moderate Buy” consensus and an average price target of $403.81, but the stock’s high valuation remains a risk. Company insiders sold 157,057 shares worth about $60.3 million over the past 90 days.

Smith Group Asset Management LLC raised its position in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 7.4% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 130,269 shares of the software maker's stock after acquiring an additional 9,014 shares during the quarter. Cadence Design Systems makes up approximately 1.8% of Smith Group Asset Management LLC's portfolio, making the stock its 28th biggest position. Smith Group Asset Management LLC's holdings in Cadence Design Systems were worth $36,198,000 at the end of the most recent quarter.

Several other hedge funds have also made changes to their positions in the business. Amundi grew its holdings in shares of Cadence Design Systems by 3.8% in the first quarter. Amundi now owns 2,060,334 shares of the software maker's stock valued at $572,488,000 after purchasing an additional 75,492 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in Cadence Design Systems by 4.6% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,874 shares of the software maker's stock worth $520,000 after buying an additional 83 shares in the last quarter. Empowered Funds LLC lifted its holdings in Cadence Design Systems by 77.2% during the 1st quarter. Empowered Funds LLC now owns 38,948 shares of the software maker's stock worth $10,822,000 after buying an additional 16,970 shares in the last quarter. Evelyn Partners Investment Management Services Ltd boosted its position in Cadence Design Systems by 1.1% in the 1st quarter. Evelyn Partners Investment Management Services Ltd now owns 4,341 shares of the software maker's stock valued at $1,206,000 after buying an additional 49 shares during the period. Finally, KCM Investment Advisors LLC boosted its position in Cadence Design Systems by 0.4% in the 1st quarter. KCM Investment Advisors LLC now owns 8,013 shares of the software maker's stock valued at $2,227,000 after buying an additional 32 shares during the period. Institutional investors and hedge funds own 84.85% of the company's stock.

Cadence Design Systems Trading Up 1.8%

Shares of NASDAQ:CDNS opened at $344.72 on Wednesday. Cadence Design Systems, Inc. has a 52 week low of $262.75 and a 52 week high of $416.69. The company's 50 day moving average is $373.90 and its two-hundred day moving average is $329.80. The company has a market cap of $95.08 billion, a PE ratio of 68.53, a P/E/G ratio of 4.01 and a beta of 1.15. The company has a current ratio of 1.47, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its quarterly earnings data 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 during the quarter, compared to analysts' expectations of $1.58 billion. Cadence Design Systems had a net margin of 23.60% and a return on equity of 29.34%. The company'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 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. Equities analysts predict that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, VP Paul Cunningham sold 2,000 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $391.00, for a total value of $782,000.00. Following the transaction, the vice president owned 126,586 shares in the company, valued at approximately $49,495,126. This represents a 1.56% 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, 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 157,057 shares of company stock valued at $60,272,277 over the last 90 days. 0.49% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Cadence Design Systems

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

• Positive Sentiment: Q2 earnings beat expectations: Cadence reported adjusted earnings of $2.11 per share, above the $2.05 consensus estimate. Revenue reached $1.58 billion, up 24.2% year over year and roughly in line with expectations. Cadence Design Systems Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: AI demand lifted the outlook: Management raised its full-year 2026 guidance to approximately $6.3 billion in revenue and $8.05-$8.15 in EPS. Third-quarter EPS guidance of $2.01-$2.07 also exceeds the $1.84 analyst consensus. The company cited robust demand for AI-powered design software, high-performance computing, and broader adoption of its core tools. Cadence raises annual forecasts as demand booms for AI chip design
• Positive Sentiment: Record backlog supports visibility: Reports highlighted an $8.1 billion backlog and anticipated 19% 2026 revenue growth. Expanding partnerships and customer interest in “agentic AI” are increasing usage across Cadence’s design portfolio. Cadence signals 19 percent 2026 revenue growth
• Positive Sentiment: Analyst sentiment improved: Bank of America and Rosenblatt raised their price targets to $420 and assigned buy ratings, while Baird lifted its target to $420 and maintained an outperform rating. Needham reaffirmed its buy rating with a $400 target. Analyst rating updates
• Neutral Sentiment: Valuation remains demanding: Piper Sandler raised its target from $325 to $349 but retained a neutral rating, suggesting limited upside relative to the other analysts’ forecasts. Cadence also trades at a high earnings multiple, leaving the stock sensitive to any slowdown in AI-related spending or future guidance.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on CDNS shares. Piper Sandler upped their price objective on Cadence Design Systems from $325.00 to $349.00 and gave the stock a "neutral" rating in a research report on Tuesday. Benchmark reiterated a "buy" rating on shares of Cadence Design Systems in a report on Tuesday. Robert W. Baird boosted their target price on Cadence Design Systems from $415.00 to $420.00 and gave the stock an "outperform" rating in a research note on Tuesday. Oppenheimer restated a "market perform" rating and set a $300.00 price target on shares of Cadence Design Systems in a report on Tuesday. Finally, Stifel Nicolaus increased their price target on Cadence Design Systems from $395.00 to $432.00 and gave the company a "buy" rating in a research report on Tuesday, June 9th. Thirteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $403.81.

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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