Cadence Design Systems, Inc. $CDNS Shares Sold by DSM Capital Partners LLC

Key Points

• DSM Capital Partners reduced its Cadence Design Systems stake by 2.3% in the first quarter, selling 6,292 shares and leaving it with 271,858 shares worth about $75.5 million.
• Cadence saw additional insider selling, including director James D. Plummer and CFO John M. Wall, with insiders selling 178,557 shares worth $66.9 million over the last three months.
• Despite the selling, analysts remain generally positive: the stock has a Moderate Buy consensus rating, Cadence beat quarterly earnings estimates, and it raised FY2026 guidance while shares traded around $374.06.

DSM Capital Partners LLC cut its holdings in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 2.3% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 271,858 shares of the software maker's stock after selling 6,292 shares during the quarter. Cadence Design Systems accounts for about 1.3% of DSM Capital Partners LLC's portfolio, making the stock its 21st largest holding. DSM Capital Partners LLC owned about 0.10% of Cadence Design Systems worth $75,541,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also bought and sold shares of the company. Pinnacle Wealth Management Advisory Group LLC lifted its position in 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 valued at $287,000 after purchasing an additional 31 shares during the period. Westfuller Advisors LLC grew its position in Cadence Design Systems by 8.2% during the 1st quarter. Westfuller Advisors LLC now owns 408 shares of the software maker's stock worth $113,000 after purchasing an additional 31 shares during the period. Spirepoint Private Client LLC raised its stake in shares of Cadence Design Systems by 4.6% during the 4th quarter. Spirepoint Private Client LLC now owns 722 shares of the software maker's stock valued at $226,000 after buying an additional 32 shares during the last quarter. Townsquare Capital LLC raised its stake in shares of Cadence Design Systems by 3.6% during the 4th quarter. Townsquare Capital LLC now owns 977 shares of the software maker's stock valued at $305,000 after buying an additional 34 shares during the last quarter. Finally, Pinnacle Associates Ltd. lifted its holdings in shares of Cadence Design Systems by 3.4% in the 3rd quarter. Pinnacle Associates Ltd. now owns 1,079 shares of the software maker's stock valued at $379,000 after buying an additional 35 shares during the period. 84.85% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, Director James D. Plummer sold 1,511 shares of the business's stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $381.34, for a total transaction of $576,204.74. Following the transaction, the director directly owned 23,264 shares in the company, valued at $8,871,493.76. The trade was a 6.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Wall sold 21,500 shares of the company's stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $309.45, for a total value of $6,653,175.00. Following the completion of the sale, the chief financial officer owned 86,875 shares of the company's stock, valued at $26,883,468.75. This trade represents a 19.84% 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. Over the last three months, insiders sold 178,557 shares of company stock worth $66,925,452. 0.49% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on CDNS shares. Needham & Company LLC restated a "buy" rating and issued a $400.00 target price on shares of Cadence Design Systems in a research note on Tuesday, April 28th. Piper Sandler lifted their price target on Cadence Design Systems from $319.00 to $325.00 and gave the company a "neutral" rating in a research report on Tuesday, April 28th. Robert W. Baird boosted their price target on Cadence Design Systems from $381.00 to $385.00 and gave the company an "outperform" rating in a report on Tuesday, April 28th. Berenberg Bank set a $440.00 target price on shares of Cadence Design Systems in a report on Wednesday, May 27th. Finally, KeyCorp lifted their target price on shares of Cadence Design Systems from $405.00 to $425.00 and gave the company an "overweight" rating in a report on Tuesday, April 28th. Fourteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $386.59.

Cadence Design Systems Price Performance

Shares of NASDAQ CDNS opened at $374.06 on Thursday. The firm has a 50-day simple moving average of $372.53 and a 200-day simple moving average of $326.04. The company has a quick ratio of 1.32, a current ratio of 1.47 and a debt-to-equity ratio of 0.38. The stock has a market capitalization of $103.17 billion, a price-to-earnings ratio of 87.19, a price-to-earnings-growth ratio of 4.39 and a beta of 1.15. Cadence Design Systems, Inc. has a 52 week low of $262.75 and a 52 week high of $416.69.

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, topping analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $1.46 billion. During the same period in the previous year, the business posted $1.57 earnings per share. Cadence Design Systems's quarterly 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. On average, equities analysts predict that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current fiscal year.

Cadence Design Systems 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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