Swiss National Bank Grows Position in Cadence Design Systems, Inc. $CDNS

Key Points

• Swiss National Bank increased its Cadence Design Systems stake by 7% in the first quarter, ending with 798,860 shares valued at about $222 million. Institutional investors still own the vast majority of the company, at 84.85%.
• Wall Street remains broadly positive on CDNS, with several firms raising price targets and Benchmark upgrading the stock to Strong Buy. The consensus price target is roughly $393.65, above the recent share price of $330.11.
• Cadence continues to lean into AI-driven growth, launching the AuraStack AI Super Agent and partnering with Rapidus on agentic AI for advanced chip design. At the same time, investors are watching for possible EDA disruption from AI competitors and the company’s July 27 earnings report.

Swiss National Bank grew its holdings in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 7.0% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 798,860 shares of the software maker's stock after purchasing an additional 52,200 shares during the quarter. Swiss National Bank owned about 0.29% of Cadence Design Systems worth $221,979,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently modified their holdings of the business. Pinnacle Wealth Management Advisory Group LLC boosted its holdings in Cadence Design Systems by 3.1% in the 1st quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,033 shares of the software maker's stock worth $287,000 after buying an additional 31 shares during the period. Westfuller Advisors LLC lifted its position in shares of Cadence Design Systems by 8.2% during the first quarter. Westfuller Advisors LLC now owns 408 shares of the software maker's stock worth $113,000 after acquiring an additional 31 shares in the last quarter. Spirepoint Private Client LLC lifted its position in shares of Cadence Design Systems by 4.6% during the fourth quarter. Spirepoint Private Client LLC now owns 722 shares of the software maker's stock worth $226,000 after acquiring an additional 32 shares in the last quarter. Cornerstone Planning Group LLC boosted its holdings in shares of Cadence Design Systems by 32.0% in the first quarter. Cornerstone Planning Group LLC now owns 132 shares of the software maker's stock worth $37,000 after acquiring an additional 32 shares during the period. Finally, Townsquare Capital LLC boosted its holdings in shares of Cadence Design Systems by 3.6% in the fourth quarter. Townsquare Capital LLC now owns 977 shares of the software maker's stock worth $305,000 after acquiring an additional 34 shares during the period. Institutional investors own 84.85% of the company's stock.

Trending Headlines about Cadence Design Systems

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

• Positive Sentiment: Benchmark upgraded Cadence to Strong Buy, and recent brokerage commentary put the average price target around $387, indicating Wall Street still sees upside from current levels. Zacks.com
• Positive Sentiment: Cadence recently launched new AI products, including the AuraStack AI Super Agent for PCB and advanced packaging design, reinforcing the company’s growth narrative in AI-driven design workflows. Business Wire article
• Positive Sentiment: The company also announced a partnership with Rapidus to advance agentic AI for advanced SoC design, which could support longer-term demand for Cadence’s software tools. Business Wire article
• Neutral Sentiment: Cadence is due to report second-quarter results on July 27, and some of the weakness may reflect investors taking profits or reducing exposure ahead of earnings. MSN article
• Negative Sentiment: Shares are also being hit by broader fears that Moonshot and other AI-driven tools could disrupt the EDA industry, pressuring Cadence and peers like Synopsys on concerns about future pricing power and competition. MSN article

Insiders Place Their Bets

In other news, 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 transaction of $69,741.00. Following the sale, the director 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 transaction was disclosed in a 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 Cadence Design Systems stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $415.00, for a total transaction of $10,377,075.00. Following the sale, the chief executive officer directly owned 253,519 shares of the company's stock, valued at $105,210,385. This represents a 8.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 157,057 shares of company stock valued at $60,272,277 over the last three months. Corporate insiders own 0.49% of the company's stock.

Cadence Design Systems Stock Performance

Shares of CDNS stock opened at $330.11 on Monday. 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 52-week low of $262.75 and a 52-week high of $416.69. The company has a market capitalization of $91.05 billion, a PE ratio of 76.95, a price-to-earnings-growth ratio of 3.91 and a beta of 1.15. The business's fifty day moving average is $376.09 and its 200 day moving average is $328.65.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its earnings results on Monday, April 27th. The software maker reported $1.96 EPS 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 during the quarter, compared to analysts' expectations of $1.46 billion. During the same period in the previous year, the business earned $1.57 earnings per share. The firm's 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. On average, equities research analysts anticipate that Cadence Design Systems, Inc. will post 6.23 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

CDNS has been the subject of several recent research reports. Wells Fargo & Company lifted their price target on Cadence Design Systems from $400.00 to $425.00 and gave the company an "overweight" rating in a research report on Tuesday, May 26th. Berenberg Bank set a $440.00 target price on Cadence Design Systems in a research note on Wednesday, May 27th. Piper Sandler lifted their target price on Cadence Design Systems from $319.00 to $325.00 and gave the company a "neutral" rating in a report on Tuesday, April 28th. Citigroup upped 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. Finally, Rosenblatt Securities increased their price target on shares of Cadence Design Systems from $375.00 to $410.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, Cadence Design Systems has an average rating of "Moderate Buy" and a consensus price target of $393.65.

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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