Diversify Wealth Management LLC Purchases New Position in Cadence Design Systems, Inc. $CDNS

Key Points

• Diversify Wealth Management LLC opened a new position in Cadence Design Systems during the first quarter, buying 7,935 shares valued at about $2.2 million.
• Cadence Design Systems reported strong quarterly results, with EPS of $1.96 beating estimates and revenue of $1.47 billion, up 18.6% year over year.
• Analysts remain largely bullish on the stock, with a consensus “Moderate Buy” rating and an average price target of $387; several firms recently raised their targets.

Diversify Wealth Management LLC acquired a new stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 7,935 shares of the software maker's stock, valued at approximately $2,205,000.

Other institutional investors and hedge funds have also made changes to their positions in the company. Whipplewood Advisors LLC grew its holdings in shares of Cadence Design Systems by 933.3% during the first quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker's stock worth $26,000 after buying an additional 84 shares in the last quarter. Brown Lisle Cummings Inc. raised its position in shares of Cadence Design Systems by 860.0% in the first quarter. Brown Lisle Cummings Inc. now owns 96 shares of the software maker's stock valued at $27,000 after buying an additional 86 shares during the last quarter. University of Texas Texas AM Investment Management Co. purchased a new position in shares of Cadence Design Systems in the fourth quarter worth about $28,000. Swiss RE Ltd. acquired a new position in Cadence Design Systems during the fourth quarter worth about $29,000. Finally, Lodestone Wealth Management LLC purchased a new stake in Cadence Design Systems during the 4th quarter valued at about $30,000. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Cadence Design Systems Stock Down 1.6%

Shares of NASDAQ CDNS opened at $377.92 on Tuesday. The stock has a market cap of $104.24 billion, a P/E ratio of 88.09, a PEG ratio of 4.55 and a beta of 1.15. 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 business's fifty day simple moving average is $375.79 and its 200-day simple moving average is $327.44.

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 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 prior year, the firm 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, equities analysts predict that Cadence Design Systems, Inc. will post 6.23 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director James D. Plummer sold 1,511 shares of the stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $381.34, for a total value of $576,204.74. Following the completion of the sale, the director directly owned 23,264 shares of the company's stock, valued at approximately $8,871,493.76. This 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 can be accessed 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 stock in a transaction dated Thursday, April 16th. The stock was sold at an average price of $309.45, for a total transaction of $6,653,175.00. Following 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 position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 178,557 shares of company stock valued at $66,925,452 over the last ninety days. Company insiders own 0.49% of the company's stock.

Analysts Set New Price Targets

Several analysts have issued reports on the company. Wells Fargo & Company upped their target price on Cadence Design Systems from $400.00 to $425.00 and gave the company an "overweight" rating in a report on Tuesday, May 26th. Rosenblatt Securities reiterated a "buy" rating and set a $360.00 price target on shares of Cadence Design Systems in a report on Friday, April 24th. Piper Sandler boosted their price target on shares of Cadence Design Systems from $319.00 to $325.00 and gave the company a "neutral" rating in a research report on Tuesday, April 28th. Berenberg Bank set a $440.00 price objective on shares of Cadence Design Systems in a report on Wednesday, May 27th. Finally, Robert W. Baird raised 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 report on Tuesday, April 28th. Thirteen 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, Cadence Design Systems presently has a consensus rating of "Moderate Buy" and a consensus price target of $387.00.

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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