Cadence Design Systems, Inc. $CDNS Shares Purchased by King Luther Capital Management Corp

Key Points

• King Luther Capital Management increased its Cadence Design Systems stake by 10.3% in the fourth quarter, buying 12,637 more shares and bringing its total holdings to 134,953 shares worth about $42.2 million.
• Cadence Design Systems reported strong quarterly results, with EPS of $1.96 beating estimates and revenue of $1.47 billion slightly topping forecasts; revenue also rose 18.6% from a year earlier.
• Analyst sentiment remains positive, with 14 Buy ratings and a consensus “Moderate Buy” view, while the average price target sits at $382.06, close to the stock’s recent trading range near its 52-week high.

King Luther Capital Management Corp boosted its stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 10.3% during the fourth quarter, according to its most recent 13F filing with the SEC. The firm owned 134,953 shares of the software maker's stock after acquiring an additional 12,637 shares during the quarter. King Luther Capital Management Corp's holdings in Cadence Design Systems were worth $42,184,000 as of its most recent filing with the SEC.

A number of other institutional investors have also recently added to or reduced their stakes in CDNS. Y.D. More Investments Ltd acquired a new stake in Cadence Design Systems in the 3rd quarter valued at $26,000. Caitlin John LLC acquired a new stake in Cadence Design Systems during the 3rd quarter worth $29,000. Lodestone Wealth Management LLC acquired a new stake in Cadence Design Systems during the 4th quarter worth $30,000. Imprint Wealth LLC acquired a new stake in Cadence Design Systems during the 3rd quarter worth $31,000. Finally, Strategic Wealth Investment Group LLC acquired a new stake in Cadence Design Systems during the 2nd quarter worth $32,000. Institutional investors and hedge funds own 84.85% of the company's stock.

Cadence Design Systems Trading Up 2.2%

Shares of CDNS stock opened at $381.75 on Wednesday. The company's 50-day moving average price is $316.29 and its 200-day moving average price is $311.67. 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 stock has a market cap of $105.29 billion, a price-to-earnings ratio of 88.99, a PEG ratio of 4.42 and a beta of 1.13. Cadence Design Systems, Inc. has a twelve month low of $262.75 and a twelve month high of $383.24.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced 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. 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 company's revenue was up 18.6% compared to the same quarter last year. During the same quarter in the previous 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. As a group, equities analysts predict that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on CDNS shares. Morgan Stanley lowered their target price on shares of Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 18th. Robert W. Baird lifted their target price on shares of Cadence Design Systems from $381.00 to $385.00 and gave the stock an "outperform" rating in a research note on Tuesday, April 28th. Stifel Nicolaus set a $395.00 target price on shares of Cadence Design Systems in a research note on Wednesday, February 18th. KeyCorp lifted 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. Finally, Citigroup lifted their target price on shares of Cadence Design Systems from $385.00 to $400.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. Fourteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Cadence Design Systems currently has a consensus rating of "Moderate Buy" and a consensus price target of $382.06.

Insider Activity at Cadence Design Systems

In related news, VP Paul Cunningham sold 1,000 shares of the business's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $337.49, for a total value of $337,490.00. Following the sale, the vice president directly owned 127,586 shares in the company, valued at approximately $43,058,999.14. The trade was a 0.78% decrease in their position. The sale was disclosed in a filing 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, VP Paul Scannell sold 1,071 shares of the business's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $345.06, for a total transaction of $369,559.26. Following the completion of the sale, the vice president owned 32,181 shares in the company, valued at approximately $11,104,375.86. This trade represents a 3.22% decrease in their ownership of the stock. 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 have sold a total of 41,251 shares of company stock valued at $13,294,350 in the last quarter. Corporate insiders own 0.49% of the company's stock.

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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