King Luther Capital Management Corp Boosts Stock Position in Cadence Design Systems, Inc. $CDNS

King Luther Capital Management Corp boosted its holdings in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS) by 2.4% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 122,316 shares of the software maker’s stock after purchasing an additional 2,868 shares during the quarter. King Luther Capital Management Corp’s holdings in Cadence Design Systems were worth $42,965,000 as of its most recent SEC filing.

Several other institutional investors have also bought and sold shares of CDNS. Strategic Wealth Investment Group LLC purchased a new position in Cadence Design Systems in the second quarter worth about $32,000. Promus Capital LLC bought a new stake in shares of Cadence Design Systems in the 2nd quarter valued at approximately $33,000. Robbins Farley purchased a new position in shares of Cadence Design Systems in the 3rd quarter worth approximately $35,000. Cloud Capital Management LLC bought a new position in shares of Cadence Design Systems during the 3rd quarter valued at approximately $35,000. Finally, Heartwood Wealth Advisors LLC purchased a new stake in Cadence Design Systems during the 3rd quarter valued at $39,000. 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: 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

Insider Buying and Selling at Cadence Design Systems

In other news, CFO John M. Wall sold 27,805 shares of the stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $318.57, for a total transaction of $8,857,838.85. Following the transaction, the chief financial officer owned 69,957 shares of the company’s stock, valued at approximately $22,286,201.49. This represents a 28.44% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Paul Scannell sold 5,490 shares of the firm’s stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $339.43, for a total value of $1,863,470.70. Following the transaction, the vice president owned 20,321 shares in the company, valued at approximately $6,897,557.03. This represents a 21.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 56,475 shares of company stock worth $18,505,486 over the last quarter. Insiders own 1.99% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts have commented on CDNS shares. JPMorgan Chase & Co. lifted their price objective on shares of Cadence Design Systems from $390.00 to $405.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 28th. Citigroup assumed coverage on shares of Cadence Design Systems in a research note on Monday, November 24th. They set a “buy” rating and a $385.00 price target for the company. Piper Sandler cut their price target on shares of Cadence Design Systems from $355.00 to $319.00 and set a “neutral” rating on the stock in a report on Wednesday. Needham & Company LLC reissued a “buy” rating and issued a $390.00 price objective on shares of Cadence Design Systems in a research note on Wednesday. Finally, Wolfe Research restated an “outperform” rating and set a $385.00 target price on shares of Cadence Design Systems in a research report on Tuesday, October 28th. Fifteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Cadence Design Systems has an average rating of “Moderate Buy” and an average price target of $376.50.

Cadence Design Systems Trading Up 7.6%

Shares of CDNS opened at $305.01 on Thursday. The firm 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 company has a debt-to-equity ratio of 0.48, a current ratio of 3.05 and a quick ratio of 2.84. Cadence Design Systems, Inc. has a 1-year low of $221.56 and a 1-year high of $376.45. The company has a 50-day moving average of $309.22 and a 200 day moving average of $328.72.

Cadence Design Systems (NASDAQ:CDNS) last issued its earnings results on Tuesday, February 17th. The software maker reported $1.99 EPS for the quarter, topping analysts’ consensus estimates of $1.91 by $0.08. Cadence Design Systems had a net margin of 20.93% and a return on equity of 30.04%. The business had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.42 billion. During the same period last year, the company posted $1.88 earnings per share. The company’s quarterly revenue was up 6.2% compared to the same quarter last year. 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. On average, research analysts expect that Cadence Design Systems, Inc. will post 5.41 EPS for the current year.

Cadence Design Systems 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.