Cadence Design Systems, Inc. $CDNS Shares Sold by Peregrine Capital Management LLC

Key Points

• Peregrine Capital Management cut its Cadence Design Systems stake by 6.1% in the first quarter, selling 5,308 shares and leaving it with 81,038 shares worth about $22.5 million.
• Cadence reported better-than-expected Q1 earnings, posting $1.96 EPS versus $1.91 expected and revenue of $1.47 billion, up 18.6% year over year.
• Wall Street remains bullish on CDNS: multiple analysts raised price targets, and the stock currently has a consensus rating of “Moderate Buy” with an average target of $386.59.

Peregrine Capital Management LLC lessened its holdings in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 6.1% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 81,038 shares of the software maker's stock after selling 5,308 shares during the period. Cadence Design Systems makes up about 0.8% of Peregrine Capital Management LLC's portfolio, making the stock its 22nd biggest holding. Peregrine Capital Management LLC's holdings in Cadence Design Systems were worth $22,518,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its holdings in Cadence Design Systems by 1.1% in the fourth quarter. Vanguard Group Inc. now owns 27,231,070 shares of the software maker's stock worth $8,511,888,000 after acquiring an additional 307,753 shares in the last quarter. State Street Corp increased its holdings in shares of Cadence Design Systems by 1.1% during the fourth quarter. State Street Corp now owns 12,603,368 shares of the software maker's stock valued at $3,939,561,000 after acquiring an additional 135,206 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Cadence Design Systems by 1.2% in the 4th quarter. Geode Capital Management LLC now owns 7,627,272 shares of the software maker's stock valued at $2,378,707,000 after purchasing an additional 92,152 shares during the last quarter. Norges Bank purchased a new position in shares of Cadence Design Systems in the 4th quarter valued at approximately $1,352,922,000. Finally, Van ECK Associates Corp boosted its stake in Cadence Design Systems by 11.9% in the 4th quarter. Van ECK Associates Corp now owns 3,534,180 shares of the software maker's stock worth $1,104,714,000 after purchasing an additional 376,654 shares in the last quarter. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Cadence Design Systems Stock Performance

Shares of NASDAQ CDNS opened at $375.32 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. Cadence Design Systems, Inc. has a 12 month low of $262.75 and a 12 month high of $416.69. The company has a 50 day simple moving average of $366.84 and a two-hundred day simple moving average of $323.79. The stock has a market cap of $103.52 billion, a price-to-earnings ratio of 87.49, a PEG ratio of 4.41 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its quarterly earnings data 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 quarter in the prior year, the business earned $1.57 earnings per share. The business's quarterly revenue was up 18.6% compared to the same quarter last year. 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, analysts predict that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on CDNS shares. KeyCorp boosted 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 report on Tuesday, April 28th. Robert W. Baird lifted their price objective 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. Citigroup boosted their price objective on shares of Cadence Design Systems from $385.00 to $400.00 and gave the company a "buy" rating in a report on Wednesday, April 29th. Rosenblatt Securities reissued a "buy" rating and issued a $360.00 target price on shares of Cadence Design Systems in a research report on Friday, April 24th. Finally, 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. Fourteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $386.59.

Insider Activity at Cadence Design Systems

In related news, Director James D. Plummer sold 1,511 shares of the firm's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $381.34, for a total transaction of $576,204.74. Following the sale, the director directly owned 23,264 shares of the company's stock, valued at $8,871,493.76. This trade represents a 6.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita M. Brennan sold 180 shares of Cadence Design Systems stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $387.45, for a total value of $69,741.00. Following the transaction, the director owned 8,004 shares of the company's stock, valued at approximately $3,101,149.80. This represents a 2.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 178,557 shares of company stock worth $66,925,452 in the last three months. Company 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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