Traders Purchase High Volume of Put Options on Cadence Design Systems (NASDAQ:CDNS)

Cadence Design Systems, Inc. (NASDAQ:CDNS) was the target of some unusual options trading on Thursday. Investors bought 25,594 put options on the stock. This is an increase of approximately 291% compared to the typical volume of 6,553 put options.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. Piper Sandler boosted their price target on Cadence Design Systems from $319.00 to $325.00 and gave the company a “neutral” rating in a research note on Tuesday, April 28th. Stifel Nicolaus set a $395.00 target price on Cadence Design Systems in a report on Wednesday, February 18th. Wells Fargo & Company raised their target price on Cadence Design Systems from $400.00 to $425.00 and gave the company an “overweight” rating in a report on Tuesday, May 26th. Citigroup raised their target price on Cadence Design Systems from $385.00 to $400.00 and gave the company a “buy” rating in a report on Wednesday, April 29th. Finally, Robert W. Baird raised their target price on Cadence Design Systems from $381.00 to $385.00 and gave the company an “outperform” rating in a report on Tuesday, April 28th. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $384.41.

Insider Transactions at Cadence Design Systems

In related news, CFO John M. Wall sold 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $348.71, for a total value of $1,743,550.00. Following the completion of the sale, the chief financial officer owned 81,875 shares of the company’s stock, valued at approximately $28,550,631.25. The trade was a 5.76% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 1,000 shares of the business’s stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $337.49, for a total value of $337,490.00. Following the completion of the sale, the vice president directly owned 127,586 shares of the company’s stock, valued at approximately $43,058,999.14. The trade was a 0.78% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 176,046 shares of company stock worth $65,830,801. 0.49% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cadence Design Systems

A number of institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. lifted its holdings in shares of Cadence Design Systems by 1.1% during the fourth quarter. Vanguard Group Inc. now owns 27,231,070 shares of the software maker’s stock worth $8,511,888,000 after buying an additional 307,753 shares during the last quarter. State Street Corp lifted its holdings in shares of Cadence Design Systems by 1.1% during the fourth quarter. State Street Corp now owns 12,603,368 shares of the software maker’s stock worth $3,939,561,000 after buying an additional 135,206 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Cadence Design Systems by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 7,627,272 shares of the software maker’s stock worth $2,378,707,000 after buying an additional 92,152 shares during the last quarter. Norges Bank acquired a new position in shares of Cadence Design Systems during the fourth quarter worth approximately $1,352,922,000. Finally, Van ECK Associates Corp lifted its holdings in shares of Cadence Design Systems by 11.9% during the fourth quarter. Van ECK Associates Corp now owns 3,534,180 shares of the software maker’s stock worth $1,104,714,000 after buying an additional 376,654 shares during the last quarter. 84.85% of the stock is currently owned by institutional investors.

Key Stories Impacting Cadence Design Systems

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

• Positive Sentiment: Cadence was highlighted as a potential long-term winner in the AI and semiconductor “arms race,” with a Buy rating and a $470 price target. The article cited 19% year-over-year revenue growth, an $8 billion backlog, and broad-based double-digit growth, which supports the company’s growth outlook. Article: Cadence: The Silicon Arms Race Is Just Getting Started
• Positive Sentiment: Analyst commentary remains constructive overall, with several firms maintaining Buy/Overweight views and raising price targets, reflecting confidence in Cadence’s EDA software leadership and AI-related demand. Article: Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum
• Neutral Sentiment: Cadence’s presentations at the Bank of America Global Technology Conference and the Nasdaq conference kept the stock in focus, but did not include new financial guidance or a material business update. Article: Cadence Design Systems, Inc. Presents at Bank of America 2026 Global Technology Conference Transcript
• Neutral Sentiment: The stock has been trading near its 52-week high, which signals strong momentum but can also leave shares more sensitive to profit-taking after a sharp run-up. Article: 1 Momentum Stock with Competitive Advantages and 2 We Brush Off
• Negative Sentiment: Unusually heavy put-option volume suggests some traders are positioning for downside, which can weigh on short-term sentiment around CDNS. Article: Unusual options trading activity
• Negative Sentiment: CEO Anirudh Devgan sold 51,822 shares and VP Paul Scannell sold 7,081 shares in recent transactions, adding to concern that insiders may be locking in gains after the stock’s strong move higher, even though both trades were under pre-arranged 10b5-1 plans. Article: Insider trade details for Anirudh Devgan
• Negative Sentiment: Recent coverage said CDNS underperformed the broader market in the latest session, suggesting some investors are taking profits or reassessing valuation after the rally. Article: Here’s Why Cadence Design Systems (CDNS) Fell More Than Broader Market

Cadence Design Systems Stock Up 1.6%

NASDAQ CDNS traded up $6.61 during trading on Thursday, hitting $414.61. 911,607 shares of the company traded hands, compared to its average volume of 2,476,617. Cadence Design Systems has a 12 month low of $262.75 and a 12 month high of $416.69. The business has a fifty day simple moving average of $328.72 and a 200 day simple moving average of $314.72. The company has a current ratio of 1.47, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38. The company has a market capitalization of $114.36 billion, a P/E ratio of 96.65, a PEG ratio of 4.93 and a beta of 1.15.

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

Cadence Design Systems Company 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.