William Blair Investment Management LLC Takes Position in Cadence Design Systems, Inc. $CDNS

Key Points

• William Blair Investment Management purchased 49,478 Cadence Design Systems shares in the second quarter, valued at approximately $18.6 million. Institutional investors collectively own 84.85% of the company.
• Cadence reported quarterly earnings of $2.11 per share, beating estimates by $0.06, while revenue rose 24.2% year over year to $1.58 billion. The company issued fiscal 2026 EPS guidance of $8.05–$8.15.
• Analysts maintain a Moderate Buy consensus rating with an average price target of $405.69, although insiders sold approximately $35.7 million of stock over the past quarter.

William Blair Investment Management LLC purchased a new position in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 49,478 shares of the software maker's stock, valued at approximately $18,570,000.

Other large investors have also added to or reduced their stakes in the company. Pinnacle Wealth Management Advisory Group LLC raised 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 purchasing an additional 31 shares in the last quarter. Westfuller Advisors LLC lifted its position in shares of Cadence Design Systems by 8.2% in the 1st quarter. Westfuller Advisors LLC now owns 408 shares of the software maker's stock worth $113,000 after purchasing an additional 31 shares during the period. Cornerstone Planning Group LLC boosted its stake in shares of Cadence Design Systems by 32.0% during the 1st quarter. Cornerstone Planning Group LLC now owns 132 shares of the software maker's stock valued at $37,000 after purchasing an additional 32 shares in the last quarter. KCM Investment Advisors LLC increased its position in shares of Cadence Design Systems by 0.4% during the first 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. Finally, Fulton Bank N.A. raised its stake in Cadence Design Systems by 2.6% in the second quarter. Fulton Bank N.A. now owns 1,296 shares of the software maker's stock worth $486,000 after buying an additional 33 shares in the last quarter. Institutional investors own 84.85% of the company's stock.

Insider Activity at Cadence Design Systems

In other Cadence Design Systems news, CEO Anirudh Devgan sold 51,822 shares of Cadence Design Systems stock in a transaction on Monday, June 1st. The stock was sold at an average price of $395.00, for a total transaction of $20,469,690.00. Following the completion of the transaction, the chief executive officer owned 278,524 shares in the company, valued at approximately $110,016,980. The trade was a 15.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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 business's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $387.45, for a total value of $69,741.00. Following the completion of the sale, the director directly owned 8,004 shares in the company, valued at $3,101,149.80. This trade represents a 2.20% 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 have sold 89,599 shares of company stock worth $35,710,627 over the last quarter. 0.49% of the stock is currently owned by company insiders.

Cadence Design Systems Trading Up 1.7%

NASDAQ:CDNS opened at $319.02 on Friday. The firm has a market capitalization of $87.85 billion, a P/E ratio of 63.42, a PEG ratio of 3.42 and a beta of 1.15. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.53. Cadence Design Systems, Inc. has a one year low of $262.75 and a one year high of $416.69. The company's 50-day simple moving average is $353.70 and its 200 day simple moving average is $331.25.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share for the quarter, beating analysts' consensus estimates of $2.05 by $0.06. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The business had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.58 billion. During the same quarter last year, the firm earned $1.65 earnings per share. The business's revenue for the quarter was up 24.2% on a year-over-year basis. 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, analysts forecast that Cadence Design Systems, Inc. will post 6.4 EPS for the current fiscal year.

Analyst Ratings Changes

Several analysts have commented on CDNS shares. Piper Sandler raised their price objective on shares of Cadence Design Systems from $325.00 to $349.00 and gave the stock a "neutral" rating in a report on Tuesday, July 28th. Citigroup increased their target price on Cadence Design Systems from $400.00 to $420.00 and gave the stock a "buy" rating in a research report on Tuesday, July 28th. Benchmark restated a "buy" rating on shares of Cadence Design Systems in a research note on Tuesday, July 28th. Berenberg Bank set a $440.00 price target on Cadence Design Systems in a research report on Wednesday, May 27th. Finally, Robert W. Baird increased their price objective on Cadence Design Systems from $415.00 to $420.00 and gave the stock an "outperform" rating in a report on Tuesday, July 28th. Thirteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $405.69.

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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