Baker Avenue Asset Management LP Cuts Holdings in Cadence Design Systems, Inc. $CDNS

Key Points

• Baker Avenue Asset Management cut its Cadence Design Systems stake by 44.5% in the fourth quarter, leaving it with 6,382 shares worth about $2.0 million.
• Cadence reported better-than-expected quarterly results, posting EPS of $1.96 versus $1.91 expected and revenue of $1.47 billion, up 18.6% year over year.
• Wall Street remains constructive on the stock, with a consensus rating of Moderate Buy and an average price target of $384.41.

Baker Avenue Asset Management LP decreased its holdings in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 44.5% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 6,382 shares of the software maker's stock after selling 5,116 shares during the period. Baker Avenue Asset Management LP's holdings in Cadence Design Systems were worth $1,995,000 as of its most recent SEC filing.

Several other hedge funds have also recently modified their holdings of the business. Assenagon Asset Management S.A. boosted its holdings in Cadence Design Systems by 120.9% in the fourth quarter. Assenagon Asset Management S.A. now owns 1,124,417 shares of the software maker's stock worth $351,470,000 after purchasing an additional 615,440 shares during the last quarter. Scge Management L.P. purchased a new stake in shares of Cadence Design Systems in the second quarter worth $187,663,000. Invesco Ltd. raised its holdings in Cadence Design Systems by 20.4% during the third quarter. Invesco Ltd. now owns 2,942,746 shares of the software maker's stock valued at $1,033,669,000 after acquiring an additional 499,009 shares during the period. Close Asset Management Ltd boosted its stake in shares of Cadence Design Systems by 577.5% in the third quarter. Close Asset Management Ltd now owns 566,679 shares of the software maker's stock worth $199,088,000 after acquiring an additional 483,039 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in shares of Cadence Design Systems in the third quarter worth about $128,767,000. Hedge funds and other institutional investors own 84.85% of the company's stock.

Insider Transactions at Cadence Design Systems

In other news, CFO John M. Wall sold 5,000 shares of the company's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $348.71, for a total value of $1,743,550.00. Following the completion of the sale, the chief financial officer owned 81,875 shares of the company's stock, valued at approximately $28,550,631.25. This represents a 5.76% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita M. Brennan sold 180 shares of the company's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $295.03, for a total value of $53,105.40. Following the sale, the director owned 7,470 shares of the company's stock, valued at approximately $2,203,874.10. This represents a 2.35% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 93,138 shares of company stock worth $32,492,540. Insiders own 0.49% of the company's stock.

Cadence Design Systems Trading Down 0.1%

NASDAQ CDNS opened at $373.85 on Friday. The stock has a market cap of $103.12 billion, a PE ratio of 87.14, a PEG ratio of 4.43 and a beta of 1.13. The company's 50-day moving average price is $319.52 and its 200-day moving average price is $312.37. Cadence Design Systems, Inc. has a 12 month low of $262.75 and a 12 month high of $383.80. The company has a current ratio of 1.47, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings results 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. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The firm had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter in the previous year, the firm posted $1.57 earnings per share. The company's revenue was up 18.6% on a year-over-year basis. 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. Equities research analysts forecast that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Stifel Nicolaus set a $395.00 price target on Cadence Design Systems in a research note on Wednesday, February 18th. Robert W. Baird increased their price target 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. Piper Sandler lifted their price target on Cadence Design Systems from $319.00 to $325.00 and gave the stock a "neutral" rating in a research report on Tuesday, April 28th. Wells Fargo & Company boosted their price objective on Cadence Design Systems from $400.00 to $425.00 and gave the stock an "overweight" rating in a research note on Tuesday. Finally, Citigroup upped their price objective on Cadence Design Systems from $385.00 to $400.00 and gave the company a "buy" rating in a research report on Wednesday, April 29th. Fourteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $384.41.

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.

Want to see what other hedge funds are holding CDNS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.