Adage Capital Partners GP L.L.C. Sells 36,100 Shares of Cadence Design Systems, Inc. $CDNS

Key Points

• Adage Capital Partners GP L.L.C. reduced its stake in Cadence Design Systems by 14.1%, owning 220,300 shares valued at $56 million after selling 36,100 shares in the 1st quarter.
• Cadence Design Systems reported earnings of $1.65 EPS for the last quarter, exceeding analysts' expectations of $1.56, along with revenue of $1.28 billion.
• Cadence Design Systems' stock has experienced a 2.2% drop, with 84.85% of shares owned by institutional investors, and recent analyst ratings indicating a consensus of "Moderate Buy."

Adage Capital Partners GP L.L.C. trimmed its position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 14.1% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 220,300 shares of the software maker's stock after selling 36,100 shares during the period. Adage Capital Partners GP L.L.C. owned about 0.08% of Cadence Design Systems worth $56,029,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Smallwood Wealth Investment Management LLC bought a new position in shares of Cadence Design Systems during the first quarter valued at about $25,000. Costello Asset Management INC bought a new position in shares of Cadence Design Systems during the first quarter valued at about $25,000. Saudi Central Bank bought a new position in shares of Cadence Design Systems during the first quarter valued at about $27,000. Valley National Advisers Inc. raised its stake in shares of Cadence Design Systems by 707.1% during the first quarter. Valley National Advisers Inc. now owns 113 shares of the software maker's stock valued at $28,000 after acquiring an additional 99 shares during the last quarter. Finally, Ancora Advisors LLC raised its stake in shares of Cadence Design Systems by 1,400.0% during the fourth quarter. Ancora Advisors LLC now owns 120 shares of the software maker's stock valued at $36,000 after acquiring an additional 112 shares during the last quarter. 84.85% of the stock is owned by institutional investors.

Cadence Design Systems Stock Up 0.5%

Shares of NASDAQ CDNS traded up $1.68 on Friday, reaching $351.01. 1,115,780 shares of the company's stock traded hands, compared to its average volume of 1,252,134. Cadence Design Systems, Inc. has a 12 month low of $221.56 and a 12 month high of $376.45. The business's 50 day simple moving average is $339.27 and its two-hundred day simple moving average is $299.35. The company has a market cap of $95.65 billion, a price-to-earnings ratio of 94.87, a price-to-earnings-growth ratio of 4.60 and a beta of 1.00. The company has a quick ratio of 2.67, a current ratio of 2.82 and a debt-to-equity ratio of 0.49.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its earnings results on Monday, July 28th. The software maker reported $1.65 earnings per share for the quarter, beating analysts' consensus estimates of $1.56 by $0.09. Cadence Design Systems had a net margin of 19.88% and a return on equity of 29.65%. The business had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.25 billion. During the same quarter last year, the firm earned $1.28 earnings per share. The business's revenue for the quarter was up 20.2% on a year-over-year basis. Cadence Design Systems has set its Q3 2025 guidance at 1.750-1.810 EPS. FY 2025 guidance at 6.850-6.950 EPS. As a group, equities research analysts forecast that Cadence Design Systems, Inc. will post 5.41 EPS for the current fiscal year.

Insider Buying and Selling

In other news, VP Paul Cunningham sold 1,000 shares of the stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $343.95, for a total transaction of $343,950.00. Following the sale, the vice president owned 102,499 shares in the company, valued at $35,254,531.05. This represents a 0.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Ita M. Brennan sold 180 shares of the firm's stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $304.00, for a total transaction of $54,720.00. Following the completion of the sale, the director owned 8,010 shares in the company, valued at $2,435,040. This represents a 2.20% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 4,180 shares of company stock worth $1,365,740. Corporate insiders own 1.99% of the company's stock.

Wall Street Analyst Weigh In

CDNS has been the subject of a number of research reports. JPMorgan Chase & Co. increased their price target on shares of Cadence Design Systems from $330.00 to $390.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 29th. Piper Sandler reissued a "neutral" rating and issued a $355.00 price target (up from $328.00) on shares of Cadence Design Systems in a research note on Tuesday, July 29th. Needham & Company LLC increased their price target on shares of Cadence Design Systems from $325.00 to $390.00 and gave the stock a "buy" rating in a research note on Tuesday, July 29th. Wall Street Zen downgraded shares of Cadence Design Systems from a "buy" rating to a "hold" rating in a research note on Sunday, August 31st. Finally, The Goldman Sachs Group initiated coverage on shares of Cadence Design Systems in a research note on Thursday, July 10th. They issued a "buy" rating and a $380.00 price target for the company. Twelve investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $364.33.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification.