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Cadence Design Systems Slides As Investors Appear to Rotate Out of High-Multiple Chip Design Software Names

Investivoq PriceTracker

Cadence Design Systems (CDNS) is down 3.7% today. Here is some analysis on what might have caused this price movement.

Analysis: The most likely driver appears to be broader weakness in technology and chip-related shares rather than a fresh company-specific setback. This could be because Cadence still trades at a premium valuation, making it more vulnerable when investors pull back from AI and semiconductor-exposed software names, even though the company’s latest results and outlook were strong. ([apnews.com](https://apnews.com/article/a2edaf9ec297fb75ff2a4e245063ec08?utm_source=openai))

Details:

  • Cadence shares closed at about $335.68, down roughly 3.66% on the session.
  • A close peer, Synopsys, also traded lower on the day, which supports the idea of sector-wide selling pressure across electronic design automation and adjacent chip software stocks.
  • Cadence’s most recent quarterly update showed revenue of $1.584 billion, record backlog of $8.1 billion, and higher full-year 2026 guidance, so today’s decline does not appear tied to a newly disclosed deterioration in operating performance. ([newsroom.cadence.com](https://newsroom.cadence.com/press-releases/press-release-details/2026/Cadence-Reports-Second-Quarter-2026-Financial-Results/default.aspx?utm_source=openai))
  • The company’s recent news flow has been mostly constructive, including new AI-product announcements and a scheduled October 26, 2026 third-quarter results webcast, which further suggests the drop may reflect positioning and valuation sensitivity ahead of earnings rather than a clear negative catalyst. ([newsroom.cadence.com](https://newsroom.cadence.com/press-releases/press-release-details/2026/Cadence-Expands-ChipStack-AI-Super-Agent-with-a-New-Agent-for-RTL-Generation-and-Early-PPA-Optimization/default.aspx?trk=article-ssr-frontend-pulse_little-text-block&utm_source=openai))

    • Sources:

    Cadence Design Systems, SEC, AP News

    Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

    $CDNS Insider Trading Activity

    CDNS Insider Trades

    $CDNS insiders have traded $CDNS stock on the open market 75 times in the past 6 months. Of those trades, 0 have been purchases and 75 have been sales.

    Here’s a breakdown of recent trading of $CDNS stock by insiders over the last 6 months:

    • ANIRUDH DEVGAN (President and CEO) has made 0 purchases and 3 sales selling 128,714 shares for an estimated $50,044,955.
    • JOHN M WALL (Sr. VP & CFO) has made 0 purchases and 6 sales selling 26,500 shares for an estimated $8,396,739.
    • PAUL SCANNELL (Sr. Vice President) has made 0 purchases and 4 sales selling 18,932 shares for an estimated $6,813,255.
    • CHIN-CHI TENG (Sr. Vice President) has made 0 purchases and 33 sales selling 18,232 shares for an estimated $6,409,779.
    • PAUL CUNNINGHAM (Sr. Vice President) has made 0 purchases and 5 sales selling 9,000 shares for an estimated $3,087,090.
    • VINCENTELLI ALBERTO SANGIOVANNI has made 0 purchases and 6 sales selling 2,500 shares for an estimated $838,684.
    • JAMES D PLUMMER sold 1,511 shares for an estimated $576,204
    • ITA M BRENNAN has made 0 purchases and 17 sales selling 360 shares for an estimated $121,132.

    To track insider transactions, check out Investivoq's insider trading dashboard. You can access data on insider stock transactions through the Investivoq API insider transaction endpoint.

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    $CDNS Hedge Fund Activity

    We have seen 787 institutional investors add shares of $CDNS stock to their portfolio, and 630 decrease their positions in their most recent quarter.

    Here are some of the largest recent moves:

    • JPMORGAN CHASE & CO added 7,865,907 shares (+inf%) to their portfolio in Q2 2026, for an estimated $2,952,232,215
    • INVESCO LTD. added 5,958,395 shares (+197.2%) to their portfolio in Q2 2026, for an estimated $2,236,304,811
    • SIXTH STREET PARTNERS MANAGEMENT COMPANY, L.P. added 2,192,940 shares (+inf%) to their portfolio in Q2 2026, for an estimated $823,054,240
    • JENNISON ASSOCIATES LLC removed 1,258,844 shares (-21.8%) from their portfolio in Q2 2026, for an estimated $472,469,330
    • BLACKROCK, INC. added 1,208,252 shares (+4.7%) to their portfolio in Q2 2026, for an estimated $453,481,140
    • T. ROWE PRICE INVESTMENT MANAGEMENT, INC. added 1,189,122 shares (+12942.1%) to their portfolio in Q2 2026, for an estimated $446,301,269
    • AMERICAN CENTURY COMPANIES INC added 1,059,557 shares (+86.2%) to their portfolio in Q2 2026, for an estimated $397,672,933

    To track hedge funds' stock portfolios, check out Investivoq's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Investivoq API 13F endpoint.

    $CDNS Government Contracts

    We have seen $2,229,485 of award payments to $CDNS over the last year.

    Here are some of the awards which we have have seen pay out the most over the last year:

    • FY26 COMBINED FIDELITY POINTWISE RENEWAL: $369,942
    • DMEA SOFTWARE MAINTENANCE 2025 CADENCE: $305,000
    • FY26 LARC POINTWISE CENTER CONSOLIDATED RENEWAL: $149,441
    • ANSA RENEWAL: $133,603
    • POINTWISE RENEWAL: $125,018

    To track government contracts to publicy traded companies, check out Investivoq's government contracts dashboard. You can access data on government contracts through the Investivoq API government contracts endpoint.

    $CDNS Congressional Stock Trading

    Members of Congress have traded $CDNS stock 4 times in the past 6 months. Of those trades, 0 have been purchases and 4 have been sales.

    Here’s a breakdown of recent trading of $CDNS stock by members of Congress over the last 6 months:

    • REPRESENTATIVE KEVIN HERN has traded it 2 times. They made 0 purchases and 2 sales worth up to $100,000 on 09/14, 09/02.
    • REPRESENTATIVE BYRON DONALDS has traded it 2 times. They made 0 purchases and 2 sales worth up to $30,000 on 06/05.

    To track congressional stock trading, check out Investivoq's congressional trading dashboard. You can access data on congressional stock trades through the Investivoq API Congress trades endpoint.

    $CDNS Price Targets

    Multiple analysts have issued price targets for $CDNS recently. We have seen 8 analysts offer price targets for $CDNS in the last 6 months, with a median target of $400.0.

    Here are some recent targets:

    • Ruben Roy from Stifel set a target price of $432.0 on 06/09/2026
    • Joe Quatrochi from Wells Fargo set a target price of $425.0 on 05/26/2026
    • Kelsey Chia from Citigroup set a target price of $400.0 on 04/29/2026
    • Clarke Jeffries from Piper Sandler set a target price of $325.0 on 04/28/2026
    • Joe Vruwink from Baird set a target price of $385.0 on 04/28/2026
    • Charles Shi from Needham set a target price of $400.0 on 04/28/2026
    • Jason Celino from Keybanc set a target price of $425.0 on 04/28/2026

    This article is not financial advice. See Investivoq's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.