Institutions Add to Cadence Design Stakes

Several large investors increased their stakes in Cadence Design Systems, Inc. during the third quarter, underscoring continued institutional interest in the software maker. Korea Investment CORP, Natixis Advisors LLC and First Trust Advisors LP all reported larger positions in recent regulatory filings.

Korea Investment CORP raised its holdings by 17.6%, buying an additional 30,636 shares to reach 204,774 shares valued at $71.93 million, representing about 0.08% of the company. Natixis Advisors LLC boosted its position by 7.2% to 231,772 shares worth $81.41 million, or roughly 0.09% of outstanding shares.

First Trust Advisors LP increased its position by 4.4%, acquiring 16,722 additional shares. The fund now holds 399,416 shares valued at $140.30 million, representing approximately 0.15% of Cadence Design Systems. Across these investors, the recent purchases add to already sizeable holdings.

Smaller firms also initiated or added positions in the third quarter. Y.D. More Investments Ltd, Caitlin John LLC, Robbins Farley and Cloud Capital Management LLC each acquired new stakes, while Strategic Wealth Investment Group LLC established a position in the second quarter. Overall, hedge funds and other institutional investors now own about 84.85% of Cadence shares.

Cadence Design Systems last reported quarterly results on Tuesday, February 17th. The company posted earnings per share of $1.99, exceeding the consensus estimate of $1.91. In the same quarter a year earlier, Cadence earned $1.88 per share.

Revenue for the quarter came in at $1.44 billion, slightly above analyst expectations of $1.42 billion and up 6.2% from the prior-year period. The company reported a net margin of 20.93% and a return on equity of 29.34%, reflecting continued profitability.

Looking ahead, Cadence issued earnings guidance for both the first quarter of 2026 and the full 2026 fiscal year. The company forecast Q1 2026 EPS in the range of $1.89 to $1.95 and full-year 2026 EPS between $8.05 and $8.15. Analysts currently expect the company to post 5.41 EPS for the current year.

Cadence shares opened at $296.94 on Monday, trading about 1.0% lower. Over the past 12 months, the stock has traded between a low of $221.56 and a high of $376.45. The company’s 50-day moving average stands at $304.06, with a 200-day moving average of $323.85.

At the latest price, Cadence Design Systems holds a market capitalization of $80.96 billion. The shares trade at a price-to-earnings ratio of 73.14 and a price-to-earnings-growth ratio of 3.56. The stock’s beta is 1.00, indicating movement roughly in line with the broader market.

Cadence reports a debt-to-equity ratio of 0.45, alongside a current ratio of 2.86 and a quick ratio of 2.67. These figures indicate the company holds substantially more current assets than current liabilities, providing liquidity to support operations and investment.

Equity research coverage remains broadly positive on Cadence Design Systems. According to MarketBeat data, fifteen analysts currently rate the stock a Buy and three assign a Hold rating, resulting in an overall “Moderate Buy” consensus. The average price target stands at $376.50.

Recent analyst actions include Morgan Stanley (MS) lowering its price target from $385.00 to $370.00 with an “overweight” rating, and Wells Fargo & Company cutting its target from $410.00 to $375.00 while also assigning an “overweight” rating. Piper Sandler reduced its target from $355.00 to $319.00 and set a “neutral” rating.

Other brokers have initiated or updated coverage in recent months. Citigroup began coverage with a “buy” rating and a $385.00 price objective, while Oppenheimer upgraded Cadence from “underperform” to “market perform” with a $275.00 target price. Needham & Company LLC and Stifel Nicolaus each issued price targets near or above $390.00 with Buy ratings.

Recent filings also show insider selling activity. Vice President Paul Cunningham sold 1,000 shares on March 2nd at an average price of $297.78, for proceeds of $297,780. Following the transaction, he owned 94,137 shares, valued at about $28.03 million, a 1.05% reduction in his holdings.

Chief Financial Officer John M. Wall sold 27,805 shares on December 16th at an average price of $318.57, totaling approximately $8.86 million. After the sale, he held 69,957 shares, with the transaction representing a 28.44% decrease in his position.

Director Ita M. Brennan sold 180 shares on December 10th at an average price of $337.48, for proceeds of $60,746.40, leaving her with 7,650 shares and marking a 2.30% reduction in her stake. Across the last 90 days, insiders sold 36,480 shares of company stock worth about $11.69 million. Company insiders collectively own about 0.37% of Cadence shares.