Fifth Third Bancorp Grows Stake in Cadence Design Systems, Inc. $CDNS

Key Points

• Fifth Third Bancorp increased its stake in Cadence Design Systems by 117.1% in Q1, bringing its holdings to 120,809 shares valued at about $33.6 million.
• Cadence reported strong quarterly results, with EPS of $1.96 beating estimates and revenue rising 18.6% year over year to $1.47 billion. The company also issued FY 2026 and Q2 2026 guidance above current-year analyst expectations.
• Wall Street remains generally constructive on CDNS, with analysts maintaining a Moderate Buy consensus and several firms raising price targets, even as some insiders recently sold shares.

Fifth Third Bancorp raised its position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 117.1% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 120,809 shares of the software maker's stock after purchasing an additional 65,162 shares during the period. Fifth Third Bancorp's holdings in Cadence Design Systems were worth $33,569,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also made changes to their positions in CDNS. Norges Bank bought a new stake in shares of Cadence Design Systems in the fourth quarter valued at about $1,352,922,000. J. Stern & Co. LLP grew its holdings in Cadence Design Systems by 10,159.3% during the 4th quarter. J. Stern & Co. LLP now owns 2,953,256 shares of the software maker's stock worth $923,129,000 after acquiring an additional 2,924,470 shares in the last quarter. Wellington Management Group LLP increased its position in Cadence Design Systems by 218.6% during the 4th quarter. Wellington Management Group LLP now owns 2,553,225 shares of the software maker's stock valued at $798,087,000 after purchasing an additional 1,751,927 shares during the period. Assenagon Asset Management S.A. increased its position in Cadence Design Systems by 120.9% during the 4th quarter. Assenagon Asset Management S.A. now owns 1,124,417 shares of the software maker's stock valued at $351,470,000 after purchasing an additional 615,440 shares during the period. Finally, Scge Management L.P. bought a new stake in shares of Cadence Design Systems in the 2nd quarter valued at about $187,663,000. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Cadence Design Systems Stock Performance

CDNS opened at $384.17 on Monday. The company has a market cap of $105.96 billion, a P/E ratio of 89.55, a price-to-earnings-growth ratio of 4.55 and a beta of 1.15. The company has a quick ratio of 1.32, a current ratio of 1.47 and a debt-to-equity ratio of 0.38. The firm's 50-day moving average price is $374.82 and its 200-day moving average price is $327.01. Cadence Design Systems, Inc. has a 52-week low of $262.75 and a 52-week high of $416.69.

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, 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 company had revenue of $1.47 billion during the quarter, compared to analysts' expectations of $1.46 billion. During the same period last year, the business earned $1.57 EPS. Cadence Design Systems's revenue for the quarter was up 18.6% on a year-over-year basis. 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 anticipate that Cadence Design Systems, Inc. will post 6.23 EPS for the current fiscal year.

Insider Buying and Selling at Cadence Design Systems

In related news, VP Paul Scannell sold 7,081 shares of the firm's stock in a transaction on Monday, June 1st. The stock was sold at an average price of $393.91, for a total value of $2,789,276.71. Following the completion of the transaction, the vice president owned 32,181 shares in the company, valued at $12,676,417.71. This trade represents a 18.04% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 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 dated Monday, June 15th. The stock was sold at an average price of $391.00, for a total value of $782,000.00. Following the sale, the vice president directly owned 126,586 shares of the company's stock, valued at approximately $49,495,126. This represents a 1.56% 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. In the last ninety days, insiders sold 178,557 shares of company stock valued at $66,925,452. Company insiders own 0.49% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on CDNS. Stifel Nicolaus upped their price target on shares of Cadence Design Systems from $395.00 to $432.00 and gave the stock a "buy" rating in a research report on Tuesday, June 9th. Needham & Company LLC reissued a "buy" rating and set a $400.00 price objective on shares of Cadence Design Systems in a report on Tuesday, April 28th. Weiss Ratings reissued a "hold (c)" rating on shares of Cadence Design Systems in a research note on Thursday, July 2nd. Citigroup upped their target price on Cadence Design Systems from $385.00 to $400.00 and gave the stock a "buy" rating in a report on Wednesday, April 29th. Finally, KeyCorp increased their target price on Cadence Design Systems from $405.00 to $425.00 and gave the company an "overweight" rating in a research report on Tuesday, April 28th. Thirteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, Cadence Design Systems has a consensus rating of "Moderate Buy" and a consensus price target of $387.00.

Cadence Design Systems Company 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.

Want to see what other hedge funds are holding CDNS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.