Cadence Design Systems (NASDAQ:CDNS) Shares Gap Down – Here’s What Happened

Cadence Design Systems, Inc. (NASDAQ:CDNS) shares gapped down prior to trading on Friday . The stock had previously closed at $364.65, but opened at $334.56. Cadence Design Systems shares last traded at $327.2490, with a volume of 547,627 shares.

More Cadence Design Systems News

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

Wall Street Analyst Weigh In

A number of research firms have issued reports on CDNS. Berenberg Bank set a $440.00 price target on Cadence Design Systems in a research report on Wednesday, May 27th. KeyCorp lifted their price objective on Cadence Design Systems from $405.00 to $425.00 and gave the company an “overweight” rating in a research note on Tuesday, April 28th. Needham & Company LLC reiterated a “buy” rating and set a $400.00 target price on shares of Cadence Design Systems in a report on Tuesday, April 28th. Rosenblatt Securities increased their target price on shares of Cadence Design Systems from $375.00 to $410.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Finally, Wells Fargo & Company raised their price target on shares of Cadence Design Systems from $400.00 to $425.00 and gave the company an “overweight” rating in a report on Tuesday, May 26th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $393.65.

Cadence Design Systems Stock Down 9.5%

The firm has a 50-day simple moving average of $376.09 and a 200 day simple moving average of $328.57. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.47 and a quick ratio of 1.32. 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.

Cadence Design Systems (NASDAQ:CDNS) last issued its earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share for the quarter, topping the consensus estimate of $1.91 by $0.05. The company had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.46 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The company’s revenue was up 18.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.57 earnings per share. 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, research analysts predict that Cadence Design Systems, Inc. will post 6.23 EPS for the current fiscal year.

Insider Activity at Cadence Design Systems

In other news, Director Ita M. Brennan sold 180 shares of the firm’s stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $387.45, for a total transaction 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. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anirudh Devgan sold 25,005 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $415.00, for a total value of $10,377,075.00. Following the completion of the transaction, the chief executive officer owned 253,519 shares in the company, valued at approximately $105,210,385. This trade represents a 8.98% decrease in their position. 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. Over the last three months, insiders have sold 157,057 shares of company stock valued at $60,272,277. 0.49% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Cadence Design Systems

Hedge funds and other institutional investors have recently modified their holdings of the stock. University of Texas Texas AM Investment Management Co. bought a new position in Cadence Design Systems in the fourth quarter worth about $28,000. Arlington Trust Co LLC grew its holdings in shares of Cadence Design Systems by 154.3% during the second quarter. Arlington Trust Co LLC now owns 89 shares of the software maker’s stock valued at $33,000 after purchasing an additional 54 shares during the last quarter. Imprint Wealth LLC bought a new position in shares of Cadence Design Systems during the third quarter valued at approximately $31,000. Whipplewood Advisors LLC raised its position in shares of Cadence Design Systems by 933.3% during the 1st quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker’s stock worth $26,000 after purchasing an additional 84 shares during the period. Finally, Swiss RE Ltd. acquired a new stake in shares of Cadence Design Systems during the 4th quarter worth approximately $29,000. Institutional investors own 84.85% of the company’s stock.

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.