Arrowstreet Capital Limited Partnership Purchases 82,235 Shares of Cadence Design Systems, Inc. $CDNS

Key Points

• Arrowstreet Capital increased its Cadence Design Systems stake by 23.6% in the fourth quarter, buying 82,235 shares and bringing its total holding to 430,737 shares valued at about $134.6 million.
• Cadence posted stronger-than-expected quarterly results, with earnings of $1.96 per share and revenue of $1.47 billion, while revenue rose 18.6% year over year. The company also issued FY2026 and Q2 2026 guidance above or around analyst expectations.
• Insider selling and analyst sentiment were mixed: several executives sold shares over the past three months, but analysts remain broadly positive with a consensus rating of “Moderate Buy” and an average price target of $386.59.

Arrowstreet Capital Limited Partnership lifted its holdings in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 23.6% during the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 430,737 shares of the software maker's stock after buying an additional 82,235 shares during the period. Arrowstreet Capital Limited Partnership owned approximately 0.16% of Cadence Design Systems worth $134,640,000 at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Sun Financial Inc bought a new position in shares of Cadence Design Systems during the 4th quarter worth $1,225,000. MUFG Securities EMEA plc raised its stake in Cadence Design Systems by 113.9% in the 4th quarter. MUFG Securities EMEA plc now owns 11,159 shares of the software maker's stock valued at $3,488,000 after acquiring an additional 5,943 shares during the period. DDD Partners LLC raised its stake in Cadence Design Systems by 27.4% in the 4th quarter. DDD Partners LLC now owns 41,968 shares of the software maker's stock valued at $13,118,000 after acquiring an additional 9,024 shares during the period. Leonteq Securities AG purchased a new stake in Cadence Design Systems during the fourth quarter valued at about $1,105,000. Finally, Allianz SE purchased a new stake in Cadence Design Systems during the third quarter valued at about $1,265,000. 84.85% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, VP Paul Cunningham sold 1,000 shares of the stock in a transaction on Friday, May 1st. The stock was sold at an average price of $337.49, for a total value of $337,490.00. Following the transaction, the vice president owned 127,586 shares of the company's stock, valued at $43,058,999.14. This represents a 0.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James D. Plummer sold 1,511 shares of Cadence Design Systems stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $381.34, for a total value of $576,204.74. Following the sale, the director directly owned 23,264 shares of the company's stock, valued at approximately $8,871,493.76. This trade represents a 6.10% 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. Insiders sold 177,557 shares of company stock valued at $66,423,642 in the last three months. 0.49% of the stock is owned by corporate insiders.

Cadence Design Systems Stock Up 2.5%

Shares of NASDAQ CDNS opened at $394.50 on Tuesday. Cadence Design Systems, Inc. has a 12 month low of $262.75 and a 12 month high of $416.69. The company has a current ratio of 1.47, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38. The firm has a market capitalization of $108.81 billion, a price-to-earnings ratio of 91.96, a PEG ratio of 4.56 and a beta of 1.15. The business has a 50-day moving average of $346.64 and a 200-day moving average of $319.47.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced 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 business had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.46 billion. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. Cadence Design Systems's quarterly revenue was up 18.6% on a year-over-year basis. During the same period last year, the firm posted $1.57 earnings per share. 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. Sell-side analysts expect that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Morgan Stanley reduced their target price on shares of Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating for the company in a research note on Wednesday, February 18th. Citigroup upped their price target on shares of Cadence Design Systems from $385.00 to $400.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Piper Sandler lifted their price objective on shares of Cadence Design Systems from $319.00 to $325.00 and gave the company a "neutral" rating in a research note on Tuesday, April 28th. Robert W. Baird boosted their target price on shares of Cadence Design Systems from $381.00 to $385.00 and gave the company an "outperform" rating in a report on Tuesday, April 28th. Finally, Wells Fargo & Company increased their target price on Cadence Design Systems from $400.00 to $425.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 26th. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $386.59.

About Cadence Design Systems

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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