ABC Arbitrage SA Purchases 13,474 Shares of Cadence Design Systems, Inc. $CDNS

Key Points

• ABC Arbitrage SA boosted its stake in Cadence Design Systems by 402.6% in the fourth quarter, buying 13,474 additional shares and bringing its total to 16,821 shares valued at about $5.26 million.
• Institutional ownership remains very high, with hedge funds and large investors holding 84.85% of Cadence’s stock. Several major firms, including Vanguard and State Street, also increased their positions.
• Cadence reported solid quarterly results, with EPS of $1.96 and revenue of $1.47 billion, both topping analyst expectations. The company also raised guidance, while analysts currently rate the stock a Moderate Buy with an average price target of $380.59.

ABC Arbitrage SA increased its position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 402.6% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 16,821 shares of the software maker's stock after buying an additional 13,474 shares during the quarter. ABC Arbitrage SA's holdings in Cadence Design Systems were worth $5,258,000 as of its most recent SEC filing.

A number of other large investors have also recently bought and sold shares of the company. Vanguard Group Inc. lifted its position in Cadence Design Systems by 1.1% during the 4th 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 in the last quarter. State Street Corp raised its holdings in Cadence Design Systems by 1.2% during the third quarter. State Street Corp now owns 12,468,162 shares of the software maker's stock worth $4,379,567,000 after acquiring an additional 149,577 shares in the last quarter. Massachusetts Financial Services Co. MA boosted its position in Cadence Design Systems by 16.0% during the third quarter. Massachusetts Financial Services Co. MA now owns 5,314,407 shares of the software maker's stock valued at $1,866,739,000 after purchasing an additional 731,788 shares during the last quarter. Invesco Ltd. grew its stake in shares of Cadence Design Systems by 20.4% in the third quarter. Invesco Ltd. now owns 2,942,746 shares of the software maker's stock valued at $1,033,669,000 after buying an additional 499,009 shares in the last quarter. Finally, Principal Financial Group Inc. grew its position in shares of Cadence Design Systems by 5.1% in the 3rd quarter. Principal Financial Group Inc. now owns 2,301,781 shares of the software maker's stock valued at $808,530,000 after acquiring an additional 110,794 shares during the period. Institutional investors and hedge funds own 84.85% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently commented on CDNS shares. Stifel Nicolaus set a $395.00 target price on Cadence Design Systems in a research note on Wednesday, February 18th. Piper Sandler upped their price objective on Cadence Design Systems from $319.00 to $325.00 and gave the company a "neutral" rating in a report on Tuesday, April 28th. Wells Fargo & Company increased their price objective on Cadence Design Systems from $375.00 to $400.00 and gave the stock an "overweight" rating in a research report on Tuesday, April 28th. Morgan Stanley dropped their target price on Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating for the company in a report on Wednesday, February 18th. Finally, Rosenblatt Securities reissued a "buy" rating and issued a $360.00 target price on shares of Cadence Design Systems in a research report on Friday, April 24th. Fourteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $380.59.

Insider Activity

In other news, VP Paul Cunningham sold 1,000 shares of the company'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 transaction of $337,490.00. Following the completion of the sale, the vice president owned 127,586 shares of the company's stock, valued at approximately $43,058,999.14. This represents a 0.78% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Wall sold 5,000 shares of the stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $348.71, for a total transaction of $1,743,550.00. Following the sale, the chief financial officer owned 81,875 shares in the company, valued at $28,550,631.25. This represents a 5.76% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 40,180 shares of company stock worth $12,924,790. 0.49% of the stock is owned by company insiders.

Cadence Design Systems Trading Up 0.4%

Shares of NASDAQ:CDNS opened at $364.20 on Tuesday. The business's 50 day simple moving average is $303.00 and its 200 day simple moving average is $310.15. Cadence Design Systems, Inc. has a 1 year low of $262.75 and a 1 year high of $376.45. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.47 and a quick ratio of 1.32. The company has a market capitalization of $100.45 billion, a P/E ratio of 84.90, a P/E/G ratio of 4.29 and a beta of 1.13.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share for the quarter, beating analysts' consensus estimates of $1.91 by $0.05. The firm had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.46 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The company's revenue was up 18.6% compared to the same quarter last year. During the same period in the prior year, the company posted $1.57 EPS. 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. On average, research analysts anticipate that Cadence Design Systems, Inc. will post 6.23 EPS for the current fiscal year.

Cadence Design Systems 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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