Cadence Design Systems, Inc. $CDNS Shares Sold by Bank of America Corp DE

Key Points

• Bank of America reduced its Cadence Design Systems stake by 29.1% in the first quarter, selling 451,634 shares and retaining 1,100,771 shares worth approximately $305.9 million. Institutional investors collectively own 84.85% of the company.
• Analysts maintain a generally positive outlook, with 13 Buy ratings and three Holds, producing a “Moderate Buy” consensus and an average price target of $405.69.
• Cadence reported quarterly EPS of $2.11, beating estimates of $2.05, while revenue rose 24.2% year over year to $1.58 billion. Shares opened at $340.02, below their 50-day moving average of $372.37.

Bank of America Corp DE reduced its stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 29.1% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,100,771 shares of the software maker's stock after selling 451,634 shares during the period. Bank of America Corp DE owned 0.40% of Cadence Design Systems worth $305,871,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Pinnacle Wealth Management Advisory Group LLC grew its holdings in shares of Cadence Design Systems by 3.1% during the first quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,033 shares of the software maker's stock worth $287,000 after purchasing an additional 31 shares during the last quarter. Westfuller Advisors LLC increased its position in shares of Cadence Design Systems by 8.2% during the first quarter. Westfuller Advisors LLC now owns 408 shares of the software maker's stock worth $113,000 after purchasing an additional 31 shares in the last quarter. Spirepoint Private Client LLC lifted its holdings in shares of Cadence Design Systems by 4.6% in the 4th quarter. Spirepoint Private Client LLC now owns 722 shares of the software maker's stock valued at $226,000 after purchasing an additional 32 shares during the last quarter. Cornerstone Planning Group LLC lifted its holdings in shares of Cadence Design Systems by 32.0% in the 1st quarter. Cornerstone Planning Group LLC now owns 132 shares of the software maker's stock valued at $37,000 after purchasing an additional 32 shares during the last quarter. Finally, KCM Investment Advisors LLC boosted its position in shares of Cadence Design Systems by 0.4% in the 1st quarter. KCM Investment Advisors LLC now owns 8,013 shares of the software maker's stock valued at $2,227,000 after purchasing an additional 32 shares during the period. Institutional investors and hedge funds own 84.85% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have commented on CDNS shares. Rosenblatt Securities lifted their price target on Cadence Design Systems from $410.00 to $420.00 and gave the stock a "buy" rating in a research report on Tuesday, July 28th. Weiss Ratings raised Cadence Design Systems from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday. Stifel Nicolaus raised their target price on shares of Cadence Design Systems from $395.00 to $432.00 and gave the stock a "buy" rating in a research report on Tuesday, June 9th. Oppenheimer reaffirmed a "market perform" rating and issued a $300.00 target price on shares of Cadence Design Systems in a report on Tuesday, July 28th. Finally, Morgan Stanley reiterated an "overweight" rating and issued a $400.00 price target on shares of Cadence Design Systems in a research report on Wednesday. Thirteen 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 has an average rating of "Moderate Buy" and a consensus price target of $405.69.

Cadence Design Systems Stock Performance

Shares of CDNS stock opened at $340.02 on Monday. The business's 50 day moving average is $372.37 and its two-hundred day moving average is $330.05. Cadence Design Systems, Inc. has a twelve month low of $262.75 and a twelve month high of $416.69. The company has a market capitalization of $93.64 billion, a P/E ratio of 67.60, a price-to-earnings-growth ratio of 3.65 and a beta of 1.15. The company has a current ratio of 1.74, a quick ratio of 1.53 and a debt-to-equity ratio of 0.36.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.05 by $0.06. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%.The business had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.58 billion. During the same quarter in the previous year, the company posted $1.65 earnings per share. The company's revenue for the quarter 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. Equities analysts forecast that Cadence Design Systems, Inc. will post 6.4 EPS for the current year.

Insider Activity at Cadence Design Systems

In other news, VP Paul Scannell sold 7,081 shares of the firm's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $393.91, for a total value of $2,789,276.71. Following the completion of the sale, the vice president owned 32,181 shares in the company, valued at approximately $12,676,417.71. This trade represents a 18.04% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anirudh Devgan sold 51,887 shares of the stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $370.00, for a total transaction of $19,198,190.00. Following the transaction, the chief executive officer directly owned 303,525 shares of the company's stock, valued at $112,304,250. This represents a 14.60% 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 145,557 shares of company stock worth $56,375,287 in the last 90 days. 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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