Cadence Design Systems slides as investors appear to take profits ahead of earnings

Cadence Design Systems (CDNS) is down 10.6% today. Here is some analysis on what might have caused this price movement.

Analysis: The catalyst is not fully clear from the company’s latest disclosures, and the move looks more like a sharp valuation reset than a reaction to a clearly negative company announcement. This could be because investors are taking profits ahead of the July 27, 2026 second-quarter report, even though Cadence recently highlighted new AI design products, a new partnership, and previously raised its 2026 outlook.

Details:

Cadence said last week that it will report second-quarter 2026 results on July 27, putting the stock in a period when positioning can become more volatile.

In late April, the company reported first-quarter results above guidance and raised its full-year 2026 revenue outlook, while also pointing to a record backlog.

Cadence introduced a new AI-focused PCB and advanced packaging design platform this week and also announced a partnership with Rapidus around agentic AI for advanced SoC design.

Despite today’s selloff, recent analyst actions had been supportive, including a fresh positive initiation and a higher price target earlier this week, which suggests the drop was not obviously tied to a wave of new downgrades.

Sources:

Cadence, SEC, Business Wire, MarketBeat ([investor.cadence.com](https://investor.cadence.com/news/news-details/2026/Cadence-Announces-Second-Quarter-2026-Financial-Results-Webcast/default.aspx?utm_source=openai))

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 insiders have traded $CDNS stock on the open market 62 times in the past 6 months. Of those trades, 0 have been purchases and 62 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 3 sales selling 18,652 shares for an estimated $6,718,335.
CHIN-CHI TENG (Sr. Vice President) has made 0 purchases and 23 sales selling 9,000 shares for an estimated $3,394,057.
PAUL CUNNINGHAM (Sr. Vice President) has made 0 purchases and 5 sales selling 6,000 shares for an estimated $1,992,550.
JAMES D PLUMMER sold 1,511 shares for an estimated $576,204
ITA M BRENNAN has made 0 purchases and 20 sales selling 360 shares for an estimated $122,845.
MOSHE GAVRIELOV sold 5 shares for an estimated $1,562

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

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$CDNS Hedge Fund Activity

We have seen 611 institutional investors add shares of $CDNS stock to their portfolio, and 668 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

CAPITAL INTERNATIONAL INVESTORS added 3,954,412 shares (+inf%) to their portfolio in Q1 2026, for an estimated $1,085,881,930
J. STERN & CO. LLP removed 2,940,736 shares (-99.6%) from their portfolio in Q1 2026, for an estimated $807,526,399
WELLINGTON MANAGEMENT GROUP LLP added 2,348,004 shares (+92.0%) to their portfolio in Q1 2026, for an estimated $644,762,133
JENNISON ASSOCIATES LLC removed 1,953,645 shares (-25.3%) from their portfolio in Q1 2026, for an estimated $536,471,112
MASSACHUSETTS FINANCIAL SERVICES CO /MA/ removed 1,819,766 shares (-38.0%) from their portfolio in Q1 2026, for an estimated $499,707,925
GOLDMAN SACHS GROUP INC added 1,420,266 shares (+54.5%) to their portfolio in Q1 2026, for an estimated $390,005,185
WINSLOW CAPITAL MANAGEMENT, LLC removed 1,151,476 shares (-100.0%) from their portfolio in Q1 2026, for an estimated $316,195,424

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

$CDNS Government Contracts

We have seen $2,201,684 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:

DMEA SOFTWARE MAINTENANCE 2025 CADENCE: $305,000
FY26 COMBINED FIDELITY POINTWISE RENEWAL: $195,960
CADENCE SOFTWARE SUPPORT AND MAINTENANCE: $175,333
FY26 LARC POINTWISE CENTER CONSOLIDATED RENEWAL: $149,441
ANSA RENEWAL: $133,603

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

$CDNS Congressional Stock Trading

Members of Congress have traded $CDNS stock 2 times in the past 6 months. Of those trades, 0 have been purchases and 2 have been sales.

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

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 Quiver Quantitative's congressional trading dashboard. You can access data on congressional stock trades through the Quiver Quantitative API Congress trades endpoint.

$CDNS Analyst Ratings

Wall Street analysts have issued reports on $CDNS in the last several months. We have seen 2 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

Morgan Stanley issued a "Overweight" rating on 02/18/2026
Needham issued a "Buy" rating on 02/18/2026

To track analyst ratings and price targets for $CDNS, check out Quiver Quantitative's $CDNS forecast page.

$CDNS Price Targets

Multiple analysts have issued price targets for $CDNS recently. We have seen 9 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 Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.