Stock Traders Buy Large Volume of Cadence Design Systems Put Options (NASDAQ:CDNS)

Cadence Design Systems, Inc. (NASDAQ:CDNS) saw some unusual options trading on Wednesday. Traders purchased 8,675 put options on the company. This represents an increase of 172% compared to the average volume of 3,187 put options.

Cadence Design Systems Price Performance

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

Cadence Design Systems (NASDAQ:CDNS) last announced its quarterly earnings data on Tuesday, February 17th. The software maker reported $1.99 earnings per share (EPS) for the quarter, topping the consensus estimate 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 company had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.42 billion. During the same quarter in the previous year, the company posted $1.88 EPS. The business’s 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. As a group, analysts expect that Cadence Design Systems will post 5.41 earnings per share for the current fiscal year.

Insider Activity at Cadence Design Systems

In other news, VP Paul Cunningham sold 1,000 shares of the company’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $295.09, for a total transaction of $295,090.00. Following the completion of the transaction, the vice president owned 95,137 shares in the company, valued at approximately $28,073,977.33. This represents a 1.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO John M. Wall sold 27,805 shares of Cadence Design Systems stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $318.57, for a total transaction of $8,857,838.85. Following the completion of the sale, the chief financial officer owned 69,957 shares in the company, valued at approximately $22,286,201.49. This represents a 28.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 56,475 shares of company stock valued at $18,505,486. Company insiders own 1.99% of the company’s stock.

Institutional Investors Weigh In On Cadence Design Systems

Institutional investors and hedge funds have recently modified their holdings of the stock. Y.D. More Investments Ltd purchased a new position in Cadence Design Systems in the 3rd quarter worth about $26,000. University of Texas Texas AM Investment Management Co. acquired a new position in shares of Cadence Design Systems in the fourth quarter worth about $28,000. Caitlin John LLC purchased a new position in shares of Cadence Design Systems in the third quarter worth approximately $29,000. Swiss RE Ltd. acquired a new stake in shares of Cadence Design Systems during the fourth quarter valued at approximately $29,000. Finally, Lodestone Wealth Management LLC purchased a new stake in shares of Cadence Design Systems in the 4th quarter valued at approximately $30,000. 84.85% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on CDNS. Stifel Nicolaus set a $395.00 target price on Cadence Design Systems in a research note on Wednesday. Morgan Stanley lowered their price target on Cadence Design Systems from $385.00 to $370.00 and set an “overweight” rating on the stock in a report on Wednesday. Piper Sandler reduced their price objective on shares of Cadence Design Systems from $355.00 to $319.00 and set a “neutral” rating for the company in a report on Wednesday. Needham & Company LLC reissued a “buy” rating and set a $390.00 target price on shares of Cadence Design Systems in a research note on Wednesday. Finally, Wolfe Research reaffirmed an “outperform” rating and issued a $385.00 price target on shares of Cadence Design Systems in a research note on Tuesday, October 28th. Fifteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $376.50.

More Cadence Design Systems News

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

• Positive Sentiment: Q4 beat and raised guidance — Cadence reported Q4 revenue and EPS above expectations and issued Q1 and full‑year FY2026 guidance well ahead of Street models (Q1 adj. EPS 1.89–1.95; FY EPS 8.05–8.15), underpinning the rally. Cadence Reports Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: AI and custom‑chip demand driving upside — Management emphasized AI-related demand across its portfolio and said the trend toward companies building custom chips should accelerate end market spending on Cadence tools. Cadence Design Systems Earnings Call Highlights AI Surge
• Positive Sentiment: Market coverage and analyst upgrades — Several firms raised/adjusted forecasts after the print (Needham reaffirmed buy with a high PT; Rosenblatt upgraded to buy), supporting investor confidence. These Analysts Revise Their Forecasts On Cadence Design Systems Following Q4 Results
• Neutral Sentiment: Mixed analyst target moves — Some shops trimmed price targets (Piper Sandler, Morgan Stanley nudged targets lower but kept constructive stances in places), creating a mix of support and caution. CDNS Price Target Commentary
• Neutral Sentiment: Options flow — Elevated put volume was reported (roughly 8,675 puts traded, ~172% above normal), which could reflect hedging or short‑term speculation rather than directional conviction.
• Negative Sentiment: Investor and insider signals — Data show notable insider selling activity and some analysts/notes (and commentary calling the stock “overpriced”) that remind investors valuation is high after the run. Cadence Design Systems (CDNS) stock rises on Q4 2025 Earnings
• Negative Sentiment: Contrarian takes and selective downgrades — Some research (e.g., Seeking Alpha commentary and an underperform from a firm earlier) argue the shares may be richly valued, which could cap upside if growth disappoints. Cadence: A Strong Company, But Overpriced

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.