Cadence Design Systems, Inc. $CDNS Shares Acquired by California State Teachers Retirement System

Key Points

• California State Teachers Retirement System dramatically increased its Cadence Design Systems position by acquiring 154.6 million shares in the second quarter, bringing its holdings to 154.97 million shares, or 56.27% of the company. Institutional investors collectively own 84.85% of CDNS.
• Analyst sentiment remains favorable: 13 analysts rate the stock Buy and three rate it Hold, giving CDNS a “Moderate Buy” consensus and an average price target of $405.69.
• Cadence reported quarterly EPS of $2.11, exceeding the $2.05 consensus, while revenue rose 24.2% year over year to $1.58 billion. However, insiders have sold 7,221 shares worth about $2.57 million over the past 90 days, and the stock opened at $292.70, below its moving averages.

California State Teachers Retirement System lifted its position in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 37,856.6% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 154,968,502 shares of the software maker's stock after acquiring an additional 154,560,224 shares during the period. California State Teachers Retirement System owned 56.27% of Cadence Design Systems worth $58,162,778,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors have also recently made changes to their positions in CDNS. Avalon Trust Co purchased a new position in Cadence Design Systems in the 2nd quarter valued at $30,000. Fiduciary Financial Advisors purchased a new stake in shares of Cadence Design Systems during the second quarter worth $31,000. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Cadence Design Systems in the fourth quarter valued at about $28,000. Arlington Trust Co LLC lifted its stake in shares of Cadence Design Systems by 154.3% in the second quarter. Arlington Trust Co LLC now owns 89 shares of the software maker's stock worth $33,000 after buying an additional 54 shares in the last quarter. Finally, Imprint Wealth LLC acquired a new position in Cadence Design Systems during the third quarter worth about $31,000. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of analysts have commented on CDNS shares. Wall Street Zen upgraded shares of Cadence Design Systems from a "hold" rating to a "buy" rating in a report on Saturday, August 1st. Weiss Ratings upgraded Cadence Design Systems from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, July 30th. Rosenblatt Securities upped their price target on Cadence Design Systems from $410.00 to $420.00 and gave the company a "buy" rating in a research report on Tuesday, July 28th. Wells Fargo & Company increased their price target on Cadence Design Systems from $400.00 to $425.00 and gave the company an "overweight" rating in a report on Tuesday, May 26th. Finally, Morgan Stanley reiterated an "overweight" rating and set a $400.00 price objective on shares of Cadence Design Systems in a research report on Wednesday, July 29th. Thirteen 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, Cadence Design Systems presently has an average rating of "Moderate Buy" and an average target price of $405.69.

Insider Activity at Cadence Design Systems

In other news, VP Paul Cunningham sold 2,000 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $323.32, for a total transaction of $646,640.00. Following the completion of the transaction, the vice president directly owned 124,586 shares in the company, valued at approximately $40,281,145.52. This represents a 1.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the firm's stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $320.88, for a total value of $401,100.00. Following the sale, the director directly owned 40,794 shares of the company's stock, valued at $13,089,978.72. The trade was a 2.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 7,221 shares of company stock valued at $2,570,606 over the last 90 days. Corporate insiders own 0.49% of the company's stock.

Cadence Design Systems Stock Performance

NASDAQ:CDNS opened at $292.70 on Monday. The company's 50-day moving average is $341.57 and its two-hundred day moving average is $334.06. Cadence Design Systems, Inc. has a 1-year low of $262.75 and a 1-year high of $416.69. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.53. The firm has a market capitalization of $80.61 billion, a price-to-earnings ratio of 58.19, a PEG ratio of 3.14 and a beta of 1.14.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.05 by $0.06. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The business had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.58 billion. During the same quarter last year, the firm earned $1.65 EPS. The business's revenue was up 24.2% compared to the same quarter last year. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS. Analysts forecast that Cadence Design Systems, Inc. will post 6.4 EPS for the current year.

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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