Ethic Inc. Boosts Stock Position in Cadence Design Systems, Inc. $CDNS

Key Points

• Ethic Inc. increased its stake in Cadence Design Systems by 14.5% in the fourth quarter, adding 3,966 shares to bring its total to 31,244 shares valued at about $9.77 million.
• Several other institutional investors also raised their positions, and hedge funds and other institutions now own 84.85% of Cadence’s stock.
• Cadence reported strong quarterly results, with EPS of $1.96 beating estimates and revenue of $1.47 billion topping expectations; analysts remain mostly bullish with a Moderate Buy rating and an average target price of $380.59.

Ethic Inc. grew its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 14.5% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 31,244 shares of the software maker's stock after acquiring an additional 3,966 shares during the period. Ethic Inc.'s holdings in Cadence Design Systems were worth $9,766,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in the stock. Occidental Asset Management LLC lifted its position in shares of Cadence Design Systems by 2.3% during the third quarter. Occidental Asset Management LLC now owns 1,321 shares of the software maker's stock worth $464,000 after acquiring an additional 30 shares in the last quarter. Whittier Trust Co. raised its position in shares of Cadence Design Systems by 0.4% in the third quarter. Whittier Trust Co. now owns 7,072 shares of the software maker's stock worth $2,456,000 after buying an additional 30 shares in the last quarter. Cornerstone Wealth Group LLC raised its position in shares of Cadence Design Systems by 4.3% in the third quarter. Cornerstone Wealth Group LLC now owns 777 shares of the software maker's stock worth $273,000 after buying an additional 32 shares in the last quarter. Spirepoint Private Client LLC raised its position in shares of Cadence Design Systems by 4.6% in the fourth quarter. Spirepoint Private Client LLC now owns 722 shares of the software maker's stock worth $226,000 after buying an additional 32 shares in the last quarter. Finally, West Family Investments Inc. raised its position in shares of Cadence Design Systems by 2.2% in the third quarter. West Family Investments Inc. now owns 1,559 shares of the software maker's stock worth $548,000 after buying an additional 33 shares in the last quarter. Hedge funds and other institutional investors own 84.85% of the company's stock.

Analyst Ratings Changes

A number of brokerages recently issued reports on CDNS. Piper Sandler increased their price objective on Cadence Design Systems from $319.00 to $325.00 and gave the stock a "neutral" rating in a research report on Tuesday, April 28th. Citigroup increased their price objective on Cadence Design Systems from $385.00 to $400.00 and gave the stock a "buy" rating in a research report on Wednesday, April 29th. Needham & Company LLC reiterated a "buy" rating and issued a $400.00 price objective on shares of Cadence Design Systems in a research report on Tuesday, April 28th. Stifel Nicolaus set a $395.00 price objective on Cadence Design Systems in a research report on Wednesday, February 18th. Finally, Wells Fargo & Company increased their price objective on Cadence Design Systems from $375.00 to $400.00 and gave the stock an "overweight" rating in a research report on Tuesday, April 28th. Fourteen research 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, the stock currently has an average rating of "Moderate Buy" and an average target price of $380.59.

Cadence Design Systems Stock Up 1.6%

CDNS opened at $362.70 on Friday. The stock has a market cap of $100.04 billion, a PE ratio of 84.55, a P/E/G ratio of 4.30 and a beta of 1.13. The company has a quick ratio of 1.32, a current ratio of 1.47 and a debt-to-equity ratio of 0.38. Cadence Design Systems, Inc. has a 52 week low of $262.75 and a 52 week high of $376.45. The business's fifty day simple moving average is $300.45 and its 200 day simple moving average is $309.70.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its earnings results on Monday, April 27th. The software maker reported $1.96 EPS for the quarter, beating analysts' consensus estimates of $1.91 by $0.05. The business had revenue of $1.47 billion for the quarter, compared to analysts' expectations of $1.46 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The firm's revenue was up 18.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.57 earnings per share. 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, research analysts expect that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current fiscal year.

Insider Transactions at Cadence Design Systems

In related news, VP Paul Scannell sold 10,500 shares of the stock in a transaction on Friday, May 1st. The stock was sold at an average price of $339.00, for a total value of $3,559,500.00. Following the transaction, the vice president owned 33,946 shares of the company's stock, valued at $11,507,694. This represents a 23.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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 on Thursday, April 16th. The shares were sold at an average price of $309.45, for a total value of $6,653,175.00. Following the completion of the transaction, the chief financial officer directly owned 86,875 shares in the company, valued at approximately $26,883,468.75. This 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 sold 40,180 shares of company stock worth $12,924,790 in the last three months. 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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