48,649 Shares in Cadence Design Systems, Inc. $CDNS Acquired by Varma Mutual Pension Insurance Co

Key Points

• Varma Mutual Pension Insurance Co. initiated a position of 48,649 Cadence Design Systems shares worth approximately $18.3 million. Institutional investors collectively own 84.85% of the company.
• Analyst sentiment remains positive, with 13 Buy ratings and three Holds, producing a “Moderate Buy” consensus and an average price target of $405.69.
• Cadence reported quarterly EPS of $2.11, exceeding estimates of $2.05, while revenue rose 24.2% year over year to $1.58 billion. However, company insiders sold 89,599 shares worth roughly $35.7 million during the last quarter.

Varma Mutual Pension Insurance Co bought a new position in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 48,649 shares of the software maker's stock, valued at approximately $18,259,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in shares of Cadence Design Systems by 1.1% in the fourth quarter. Vanguard Group Inc. now owns 27,231,070 shares of the software maker's stock valued at $8,511,888,000 after purchasing an additional 307,753 shares during the period. State Street Corp boosted its holdings in shares of Cadence Design Systems by 1.1% during the 4th 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 period. Geode Capital Management LLC boosted its holdings in shares of Cadence Design Systems by 1.2% during the 4th 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 period. Norges Bank acquired a new position in Cadence Design Systems in the 4th quarter valued at $1,352,922,000. Finally, Van ECK Associates Corp grew its stake in Cadence Design Systems by 11.9% in the 4th quarter. Van ECK Associates Corp now owns 3,534,180 shares of the software maker's stock valued at $1,104,714,000 after buying an additional 376,654 shares during the last quarter. Institutional investors and hedge funds own 84.85% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. Piper Sandler boosted their target price on shares of Cadence Design Systems from $325.00 to $349.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 28th. Morgan Stanley restated an "overweight" rating and set a $400.00 price target on shares of Cadence Design Systems in a report on Wednesday, July 29th. Benchmark reaffirmed a "buy" rating on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Bank of America lifted their price objective on Cadence Design Systems from $400.00 to $420.00 and gave the stock a "buy" rating in a research note on Tuesday, July 28th. Finally, Wall Street Zen raised Cadence Design Systems from a "hold" rating to a "buy" rating in a research report on Saturday, August 1st. Thirteen 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 has an average rating of "Moderate Buy" and a consensus price target of $405.69.

Cadence Design Systems Price Performance

NASDAQ:CDNS opened at $319.02 on Friday. The stock has a market cap of $87.85 billion, a P/E ratio of 63.42, a PEG ratio of 3.42 and a beta of 1.15. Cadence Design Systems, Inc. has a one year low of $262.75 and a one year high of $416.69. The company has a fifty day moving average price of $353.70 and a 200 day moving average price of $331.25. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.53.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.05 by $0.06. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The company had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.58 billion. During the same period last year, the business posted $1.65 EPS. The business's quarterly revenue was up 24.2% on a year-over-year basis. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS. Analysts anticipate that Cadence Design Systems, Inc. will post 6.4 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Anirudh Devgan sold 25,005 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $415.00, for a total value of $10,377,075.00. Following the completion of the sale, 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 7,081 shares of Cadence Design Systems stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $393.91, for a total value of $2,789,276.71. Following the sale, the vice president directly owned 32,181 shares in the company, valued at approximately $12,676,417.71. This trade represents a 18.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 89,599 shares of company stock valued at $35,710,627 in the last quarter. 0.49% of the stock is currently owned by insiders.

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.

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