AlphaQuest LLC Buys 2,930 Shares of Cadence Design Systems, Inc. $CDNS

Key Points

• AlphaQuest LLC boosted its Cadence Design Systems stake by 61.2% in the fourth quarter, buying 2,930 more shares and bringing its total holdings to 7,718 shares worth about $2.41 million.
• Cadence reported a strong quarterly performance, with EPS of $1.96 and revenue of $1.47 billion, both slightly ahead of analyst expectations, while revenue rose 18.6% year over year.
• Analysts remain broadly positive on CDNS, with 14 Buy ratings and a consensus price target of $382.06, even as insiders have recently sold shares and the stock trades near its 52-week high.

AlphaQuest LLC grew its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 61.2% in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 7,718 shares of the software maker's stock after acquiring an additional 2,930 shares during the period. AlphaQuest LLC's holdings in Cadence Design Systems were worth $2,412,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of CDNS. Cary Street Partners Investment Advisory LLC lifted its stake in shares of Cadence Design Systems by 17.1% during the 4th quarter. Cary Street Partners Investment Advisory LLC now owns 391 shares of the software maker's stock valued at $122,000 after buying an additional 57 shares in the last quarter. Bleakley Financial Group LLC lifted its stake in shares of Cadence Design Systems by 6.1% during the 4th quarter. Bleakley Financial Group LLC now owns 14,359 shares of the software maker's stock valued at $4,488,000 after buying an additional 828 shares in the last quarter. Mmbg Investment Advisors CO. lifted its stake in shares of Cadence Design Systems by 3.7% during the 4th quarter. Mmbg Investment Advisors CO. now owns 2,990 shares of the software maker's stock valued at $935,000 after buying an additional 107 shares in the last quarter. Harbour Investments Inc. lifted its stake in shares of Cadence Design Systems by 84.0% during the 4th quarter. Harbour Investments Inc. now owns 725 shares of the software maker's stock valued at $227,000 after buying an additional 331 shares in the last quarter. Finally, Global Assets Advisory LLC lifted its stake in shares of Cadence Design Systems by 2.1% during the 4th quarter. Global Assets Advisory LLC now owns 1,726 shares of the software maker's stock valued at $540,000 after buying an additional 35 shares in the last quarter. 84.85% of the stock is owned by institutional investors.

Cadence Design Systems Stock Performance

NASDAQ CDNS opened at $381.75 on Wednesday. Cadence Design Systems, Inc. has a 1 year low of $262.75 and a 1 year high of $383.24. 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 stock has a market capitalization of $105.29 billion, a PE ratio of 88.99, a P/E/G ratio of 4.42 and a beta of 1.13. The company's 50 day simple moving average is $316.29 and its two-hundred day simple moving average is $311.67.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings data on Monday, April 27th. The software maker reported $1.96 earnings per share for the quarter, beating the consensus estimate of $1.91 by $0.05. The firm had revenue of $1.47 billion for the quarter, compared to analysts' expectations of $1.46 billion. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The business's quarterly revenue was up 18.6% on a year-over-year basis. During the same quarter last 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. Analysts predict that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current fiscal year.

Analyst Ratings Changes

CDNS has been the topic of a number of recent research reports. Stifel Nicolaus set a $395.00 price target on shares of Cadence Design Systems in a research note on Wednesday, February 18th. KeyCorp increased their target price on shares of Cadence Design Systems from $405.00 to $425.00 and gave the stock an "overweight" rating in a research note on Tuesday, April 28th. Piper Sandler increased their target price on shares of Cadence Design Systems from $319.00 to $325.00 and gave the stock a "neutral" rating in a research note on Tuesday, April 28th. Needham & Company LLC reiterated a "buy" rating and issued a $400.00 target price on shares of Cadence Design Systems in a research note on Tuesday, April 28th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $360.00 target price on shares of Cadence Design Systems in a research note 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 company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $382.06.

Insider Activity at Cadence Design Systems

In other news, Director Ita M. Brennan sold 180 shares of the firm's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $295.03, for a total transaction of $53,105.40. Following the sale, the director owned 7,470 shares in the company, valued at approximately $2,203,874.10. This trade represents a 2.35% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Paul Cunningham sold 1,000 shares of the firm's stock in a transaction 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 sale, the vice president owned 127,586 shares in the company, valued at approximately $43,058,999.14. This trade represents a 0.78% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 41,251 shares of company stock worth $13,294,350. Corporate insiders own 0.49% of the company's stock.

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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