Cadence Design Systems, Inc. $CDNS Shares Sold by Natixis Advisors LLC

Key Points

• Natixis Advisors LLC cut its Cadence Design Systems position by 9.2% in the fourth quarter, selling 21,387 shares and leaving it with 210,385 shares valued at about $65.8 million.
• Despite that sale, institutional ownership remains very high, with funds like Vanguard, State Street, Geode Capital, Norges Bank, and Invesco either adding to or initiating large positions in the stock.
• Cadence reported better-than-expected quarterly results, including EPS of $1.96 versus $1.91 expected and revenue of $1.47 billion, while analysts broadly remain positive with a consensus rating of "Moderate Buy" and a target price of $384.41.

Natixis Advisors LLC lowered its position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 9.2% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 210,385 shares of the software maker's stock after selling 21,387 shares during the period. Natixis Advisors LLC owned about 0.08% of Cadence Design Systems worth $65,762,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. Vanguard Group Inc. grew its holdings in shares of Cadence Design Systems by 1.1% during the fourth quarter. Vanguard Group Inc. now owns 27,231,070 shares of the software maker's stock worth $8,511,888,000 after buying an additional 307,753 shares during the last quarter. State Street Corp grew its holdings in shares of Cadence Design Systems by 1.2% during the third quarter. State Street Corp now owns 12,468,162 shares of the software maker's stock worth $4,379,567,000 after buying an additional 149,577 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Cadence Design Systems by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 7,627,272 shares of the software maker's stock worth $2,378,707,000 after buying an additional 92,152 shares during the last quarter. Norges Bank purchased a new position in shares of Cadence Design Systems during the fourth quarter worth about $1,352,922,000. Finally, Invesco Ltd. grew its holdings in shares of Cadence Design Systems by 20.4% during the third quarter. Invesco Ltd. now owns 2,942,746 shares of the software maker's stock worth $1,033,669,000 after buying an additional 499,009 shares during the last quarter. Institutional investors and hedge funds own 84.85% of the company's stock.

Analysts Set New Price Targets

CDNS has been the topic of a number of research reports. Robert W. Baird raised their price target on Cadence Design Systems from $381.00 to $385.00 and gave the stock an "outperform" rating in a report on Tuesday, April 28th. Berenberg Bank set a $440.00 price target on Cadence Design Systems in a report on Wednesday, May 27th. Morgan Stanley lowered their price target on Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating on the stock in a report on Wednesday, February 18th. KeyCorp raised their price target on Cadence Design Systems from $405.00 to $425.00 and gave the stock an "overweight" rating in a report on Tuesday, April 28th. Finally, Wells Fargo & Company raised their price target on Cadence Design Systems from $400.00 to $425.00 and gave the stock an "overweight" rating in a report on Tuesday, May 26th. Fourteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Cadence Design Systems currently has a consensus rating of "Moderate Buy" and a consensus target price of $384.41.

Cadence Design Systems Stock Performance

NASDAQ CDNS opened at $416.39 on Wednesday. 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 business's 50 day moving average is $323.76 and its two-hundred day moving average is $313.36. Cadence Design Systems, Inc. has a 12-month low of $262.75 and a 12-month high of $416.69. The stock has a market capitalization of $114.85 billion, a price-to-earnings ratio of 97.06, a PEG ratio of 4.90 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.91 by $0.05. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The company had revenue of $1.47 billion for the quarter, compared to analysts' expectations of $1.46 billion. During the same quarter in the previous year, the firm posted $1.57 EPS. The firm'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. Research analysts expect that Cadence Design Systems, Inc. will post 6.23 EPS for the current year.

Insider Activity at Cadence Design Systems

In other news, VP Paul Scannell sold 10,500 shares of the business's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $339.00, for a total transaction of $3,559,500.00. Following the sale, the vice president owned 33,946 shares of the company's stock, valued at $11,507,694. The trade was a 23.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through 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 business's stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $309.45, for a total value of $6,653,175.00. Following the sale, the chief financial officer directly owned 86,875 shares in the company, valued at $26,883,468.75. This trade represents a 19.84% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 92,138 shares of company stock worth $32,194,760 in the last three months. 0.49% of the stock is currently owned by corporate insiders.

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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