Cadence Design Systems, Inc. $CDNS Stock: Jackson Square Capital LLC Lowers Position

Key Points

• Jackson Square Capital cut its Cadence Design Systems position by 50.6% in the third quarter, selling 11,192 shares and retaining 10,934 shares valued at approximately $3.61 million. Hedge funds and institutional investors collectively own 84.85% of CDNS.
• Wall Street remains broadly bullish, with a consensus “Moderate Buy” rating from 22 analysts and an average price target of $404.14, despite one neutral rating.
• CDNS shares rose 2.5% to $327.63, while the company reported quarterly EPS of $2.11 versus a $2.05 estimate and 24.2% year-over-year revenue growth. Insiders sold 8,960 shares worth $2.83 million during the latest quarter.

Jackson Square Capital LLC lowered its position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 50.6% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 10,934 shares of the software maker's stock after selling 11,192 shares during the period. Jackson Square Capital LLC's holdings in Cadence Design Systems were worth $3,610,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of CDNS. SteelPeak Wealth LLC boosted its stake in shares of Cadence Design Systems by 21.2% in the 3rd quarter. SteelPeak Wealth LLC now owns 2,295 shares of the software maker's stock valued at $758,000 after purchasing an additional 401 shares in the last quarter. IFP Advisors Inc raised its position in Cadence Design Systems by 862.3% in the 3rd quarter. IFP Advisors Inc now owns 10,172 shares of the software maker's stock worth $3,359,000 after purchasing an additional 9,115 shares during the period. Frank Rimerman Advisors LLC raised its position in Cadence Design Systems by 256.5% in the 3rd quarter. Frank Rimerman Advisors LLC now owns 17,892 shares of the software maker's stock worth $5,908,000 after purchasing an additional 12,873 shares during the period. Alpine Bank Wealth Management lifted its stake in Cadence Design Systems by 264.2% in the third quarter. Alpine Bank Wealth Management now owns 845 shares of the software maker's stock worth $279,000 after purchasing an additional 613 shares during the last quarter. Finally, Hutchens & Kramer Investment Management Group LLC lifted its stake in Cadence Design Systems by 7.1% in the third quarter. Hutchens & Kramer Investment Management Group LLC now owns 2,207 shares of the software maker's stock worth $729,000 after purchasing an additional 146 shares during the last quarter. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the stock. KeyCorp restated an "overweight" rating on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Rothschild & Co Redburn lifted their price objective on Cadence Design Systems from $385.00 to $395.00 and gave the stock a "buy" rating in a report on Tuesday, July 28th. Needham & Company LLC reissued a "buy" rating and issued a $400.00 target price on shares of Cadence Design Systems in a research note on Tuesday, July 28th. Rosenblatt Securities boosted their target price on Cadence Design Systems from $410.00 to $420.00 and gave the company a "buy" rating in a research note on Tuesday, July 28th. Finally, Piper Sandler increased their target price on Cadence Design Systems from $325.00 to $349.00 and gave the company a "neutral" rating in a report on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Cadence Design Systems currently has a consensus rating of "Moderate Buy" and an average target price of $404.14.

Insiders Place Their Bets

In other Cadence Design Systems news, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $350.07, for a total value of $437,587.50. Following the completion of the sale, the director owned 39,544 shares in the company, valued at approximately $13,843,168.08. This trade represents a 3.06% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 2,000 shares of Cadence Design Systems stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $277.12, for a total value of $554,240.00. Following the completion of the sale, the vice president owned 121,793 shares in the company, valued at approximately $33,751,276.16. This represents a 1.62% 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 8,960 shares of company stock worth $2,834,139 in the last quarter. 0.49% of the stock is currently owned by company insiders.

Cadence Design Systems Trading Up 2.5%

CDNS traded up $8.12 during trading on Monday, hitting $327.63. 699,226 shares of the stock traded hands, compared to its average volume of 2,438,860. The firm has a market capitalization of $90.23 billion, a P/E ratio of 65.15, a price-to-earnings-growth ratio of 3.42 and a beta of 1.13. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.53. The firm has a 50-day moving average of $318.85 and a 200 day moving average of $339.32. Cadence Design Systems, Inc. has a 12-month low of $262.75 and a 12-month high of $416.69.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.05 by $0.06. The business had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.58 billion. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The company's revenue was up 24.2% on a year-over-year basis. During the same quarter last year, the firm earned $1.65 EPS. 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 research analysts anticipate that Cadence Design Systems, Inc. will post 6.41 EPS for the current year.

Cadence Design Systems Profile

Cadence Design Systems, Inc develops computational software, hardware, and semiconductor intellectual property used to design and verify electronic systems and integrated circuits. Its electronic design automation (EDA) solutions support chip development across areas such as digital and custom IC design, functional verification, emulation, prototyping, and system analysis.

The company also provides semiconductor IP, including processor cores, interconnect technologies, memory interfaces, and other building blocks that help customers develop complex chips.

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