Cadence Design Systems, Inc. $CDNS Stock Holdings Lowered by Wedge Capital Management L L P NC

Key Points

• Wedge Capital Management trimmed its Cadence stake by 5.5% in Q4, selling 9,955 shares and ending the period with 172,448 shares worth about $53.9 million, which represents 1.0% of Wedge's portfolio (its 27th-largest holding).
• Cadence beat Q4 expectations, reporting $1.99 EPS on $1.44 billion revenue (revenue +6.2% YoY), and set Q1 2026 EPS guidance of $1.890–1.950 and FY2026 guidance of $8.050–8.150; analysts hold a consensus "Moderate Buy" with an average target of $376.50.

Wedge Capital Management L L P NC lessened its position in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 5.5% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 172,448 shares of the software maker's stock after selling 9,955 shares during the period. Cadence Design Systems makes up 1.0% of Wedge Capital Management L L P NC's portfolio, making the stock its 27th biggest position. Wedge Capital Management L L P NC owned approximately 0.06% of Cadence Design Systems worth $53,904,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Peterson Wealth Services boosted its position in Cadence Design Systems by 1,501.3% during the 3rd quarter. Peterson Wealth Services now owns 187,115 shares of the software maker's stock worth $65,726,000 after acquiring an additional 175,430 shares during the period. Pacer Advisors Inc. increased its holdings in shares of Cadence Design Systems by 83.3% during the third quarter. Pacer Advisors Inc. now owns 182,348 shares of the software maker's stock valued at $64,052,000 after purchasing an additional 82,856 shares during the period. Stanley Laman Group Ltd. bought a new stake in shares of Cadence Design Systems during the third quarter valued at about $6,177,000. Patton Fund Management Inc. raised its stake in shares of Cadence Design Systems by 1,743.7% during the third quarter. Patton Fund Management Inc. now owns 13,994 shares of the software maker's stock valued at $4,916,000 after purchasing an additional 13,235 shares in the last quarter. Finally, Westerkirk Capital Inc. acquired a new stake in Cadence Design Systems in the second quarter worth about $2,024,000. 84.85% of the stock is owned by institutional investors and hedge funds.

Cadence Design Systems Price Performance

Shares of NASDAQ CDNS opened at $271.77 on Friday. Cadence Design Systems, Inc. has a twelve month low of $221.56 and a twelve month high of $376.45. The company has a current ratio of 2.86, a quick ratio of 2.67 and a debt-to-equity ratio of 0.45. The firm has a 50-day moving average of $295.46 and a two-hundred day moving average of $317.83. The company has a market capitalization of $75.03 billion, a price-to-earnings ratio of 66.94, a PEG ratio of 3.37 and a beta of 1.00.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings data on Tuesday, February 17th. The software maker reported $1.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.91 by $0.08. Cadence Design Systems had a net margin of 20.93% and a return on equity of 29.34%. The company had revenue of $1.44 billion for the quarter, compared to analysts' expectations of $1.42 billion. During the same quarter in the previous year, the company posted $1.88 EPS. The business's revenue was up 6.2% compared to the same quarter last year. Cadence Design Systems has set its Q1 2026 guidance at 1.890-1.950 EPS and its FY 2026 guidance at 8.050-8.150 EPS. As a group, analysts expect that Cadence Design Systems, Inc. will post 5.41 earnings per share for the current fiscal year.

Analysts Set New Price Targets

CDNS has been the topic of several research analyst reports. Piper Sandler lowered their target price on shares of Cadence Design Systems from $355.00 to $319.00 and set a "neutral" rating on the stock in a research note on Wednesday, February 18th. Wells Fargo & Company decreased their price objective on shares of Cadence Design Systems from $410.00 to $375.00 and set an "overweight" rating for the company in a report on Wednesday, February 18th. Rosenblatt Securities reiterated a "buy" rating and set a $360.00 price objective on shares of Cadence Design Systems in a research note on Thursday, February 26th. Oppenheimer raised Cadence Design Systems from an "underperform" rating to a "market perform" rating and set a $275.00 target price on the stock in a report on Monday, December 1st. Finally, Stifel Nicolaus set a $395.00 target price on Cadence Design Systems in a research report on Wednesday, February 18th. Fifteen research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Cadence Design Systems presently has an average rating of "Moderate Buy" and a consensus price target of $376.50.

Insider Buying and Selling at Cadence Design Systems

In other news, VP Paul Cunningham sold 1,000 shares of the stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $297.78, for a total transaction of $297,780.00. Following the completion of the sale, the vice president owned 94,137 shares in the company, valued at approximately $28,032,115.86. This represents a 1.05% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Ita M. Brennan sold 180 shares of the firm's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $295.03, for a total value of $53,105.40. Following the sale, the director directly owned 7,470 shares of the company's stock, valued at approximately $2,203,874.10. This represents a 2.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 3,185 shares of company stock worth $963,238 in the last ninety days. 1.99% of the stock is owned by corporate insiders.

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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