King Luther Capital Management Corp Acquires 2,868 Shares of Cadence Design Systems, Inc. $CDNS

King Luther Capital Management Corp raised its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS) by 2.4% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 122,316 shares of the software maker’s stock after acquiring an additional 2,868 shares during the quarter. King Luther Capital Management Corp’s holdings in Cadence Design Systems were worth $42,965,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in CDNS. Peterson Wealth Services raised its holdings in shares of Cadence Design Systems by 1,501.3% in the third quarter. Peterson Wealth Services now owns 187,115 shares of the software maker’s stock worth $65,726,000 after buying an additional 175,430 shares during the last quarter. Pacer Advisors Inc. increased its position in shares of Cadence Design Systems by 83.3% in the 3rd quarter. Pacer Advisors Inc. now owns 182,348 shares of the software maker’s stock valued at $64,052,000 after acquiring an additional 82,856 shares during the period. Stanley Laman Group Ltd. purchased a new position in Cadence Design Systems in the 3rd quarter worth $6,177,000. Patton Fund Management Inc. lifted its position in Cadence Design Systems by 1,743.7% during the 3rd quarter. Patton Fund Management Inc. now owns 13,994 shares of the software maker’s stock worth $4,916,000 after acquiring an additional 13,235 shares during the period. Finally, Westerkirk Capital Inc. purchased a new stake in Cadence Design Systems during the 2nd quarter valued at about $2,024,000. 84.85% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on CDNS shares. Stifel Nicolaus set a $395.00 price objective on Cadence Design Systems in a research note on Wednesday. Robert W. Baird raised their price target on shares of Cadence Design Systems from $390.00 to $418.00 and gave the stock an “outperform” rating in a research report on Tuesday, October 28th. Needham & Company LLC reaffirmed a “buy” rating and issued a $390.00 price objective on shares of Cadence Design Systems in a report on Wednesday. Morgan Stanley cut their price objective on shares of Cadence Design Systems from $385.00 to $370.00 and set an “overweight” rating on the stock in a research note on Wednesday. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Cadence Design Systems in a research report on Monday, December 29th. Fifteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, Cadence Design Systems presently has a consensus rating of “Moderate Buy” and an average target price of $376.50.

Key Stories Impacting Cadence Design Systems

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

• Positive Sentiment: Q4 results and guidance: Cadence reported Q4 revenue and EPS above expectations and issued stronger-than-expected Q1 and FY26 guidance, underpinning the rally. Cadence Reports Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: AI/custom-chip tailwinds: Management emphasized accelerating custom-chip design and AI-related demand during the earnings call — a structural growth argument investors favor. Cadence Design Systems Earnings Call Highlights AI Surge
• Positive Sentiment: Wall Street reaction: Several outlets and analysts praised the quarter and outlook (coverage noting the beat and bullish takes), adding buying interest after-hours and into today’s session. Cadence Design Systems shares pop on earnings beat, custom chip optimism
• Positive Sentiment: Bank of America remains bullish: BofA reaffirmed a Buy and a $400 price target, supplying additional upside thesis for investors focused on long-term AI exposure. Bank of America Securities Remains Bullish on Cadence Design Systems, Inc. (CDNS)
• Neutral Sentiment: Analyst mix: Some shops raised targets or reiterated buy calls while others trimmed price targets — the result is mixed analyst messaging that supports both cautious and constructive views. These Analysts Revise Their Forecasts On Cadence Design Systems Following Q4 Results
• Neutral Sentiment: Rosenblatt stance changed: Recent items show Rosenblatt both upgrading and later reiterating a neutral rating — an example of short-term analyst repositioning after the print. Rosenblatt Securities Reiterates “Neutral” Rating for Cadence Design Systems (NASDAQ:CDNS)
• Negative Sentiment: Unusual put buying: Large volume of put options was traded, signaling traders buying downside protection or taking bearish bets — this increases short-term volatility risk. Stock Traders Buy Large Volume of Cadence Design Systems Put Options (NASDAQ:CDNS)
• Negative Sentiment: Insider/hedge activity and positioning: Reports show notable insider selling and sizable institutional portfolio adjustments; while not uncommon, these can weigh on near-term sentiment. Cadence Design Systems (CDNS) stock rises on Q4 2025 Earnings

Cadence Design Systems Price Performance

Shares of NASDAQ CDNS opened at $305.01 on Thursday. The company has a debt-to-equity ratio of 0.48, a current ratio of 3.05 and a quick ratio of 2.84. The stock has a market capitalization of $83.02 billion, a price-to-earnings ratio of 75.13, a PEG ratio of 3.15 and a beta of 1.01. The firm’s 50 day simple moving average is $309.22 and its 200-day simple moving average is $328.72. Cadence Design Systems, Inc. has a 12 month low of $221.56 and a 12 month high of $376.45.

Cadence Design Systems (NASDAQ:CDNS) last released its quarterly earnings results on Tuesday, February 17th. The software maker reported $1.99 EPS for the quarter, beating the consensus estimate of $1.91 by $0.08. The company had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.42 billion. Cadence Design Systems had a net margin of 20.93% and a return on equity of 30.04%. The firm’s revenue was up 6.2% on a year-over-year basis. During the same quarter last year, the business earned $1.88 earnings per share. Cadence Design Systems has set its Q1 2026 guidance at 1.890-1.950 EPS and its FY 2026 guidance at 8.050-8.150 EPS. Analysts expect that Cadence Design Systems, Inc. will post 5.41 EPS for the current year.

Insider Activity at Cadence Design Systems

In other Cadence Design Systems news, VP Paul Cunningham sold 1,000 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $295.09, for a total value of $295,090.00. Following the sale, the vice president directly owned 95,137 shares of the company’s stock, valued at approximately $28,073,977.33. This trade represents a 1.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Paul Scannell sold 5,490 shares of the company’s stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $339.43, for a total value of $1,863,470.70. Following the transaction, the vice president directly owned 20,321 shares of the company’s stock, valued at approximately $6,897,557.03. The trade was a 21.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 56,475 shares of company stock valued at $18,505,486 in the last ninety days. 1.99% of the stock is currently owned by company insiders.

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.