Flputnam Investment Management Co. Lowers Holdings in Cadence Design Systems, Inc. $CDNS

Key Points

• Flputnam Investment Management cut its Cadence Design Systems stake by 13.5% in the fourth quarter, leaving it with 29,678 shares valued at about $9.3 million.
• Despite that trim, institutional ownership remains high: hedge funds and other institutional investors own about 84.85% of Cadence, and several other funds recently increased their positions significantly.
• Cadence reported strong quarterly results, with EPS of $1.96 topping estimates and revenue rising 18.6% year over year; analysts still rate the stock a Moderate Buy with an average target price of $384.41.

Flputnam Investment Management Co. trimmed its holdings in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 13.5% during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 29,678 shares of the software maker's stock after selling 4,634 shares during the quarter. Flputnam Investment Management Co.'s holdings in Cadence Design Systems were worth $9,277,000 at the end of the most recent reporting period.

Several other hedge funds also recently added to or reduced their stakes in the business. Assenagon Asset Management S.A. boosted its stake in shares of 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 worth $351,470,000 after acquiring an additional 615,440 shares in the last quarter. Scge Management L.P. purchased a new stake in shares of Cadence Design Systems during the 2nd quarter worth about $187,663,000. Invesco Ltd. boosted its stake in shares of Cadence Design Systems by 20.4% during the 3rd quarter. Invesco Ltd. now owns 2,942,746 shares of the software maker's stock worth $1,033,669,000 after acquiring an additional 499,009 shares in the last quarter. Close Asset Management Ltd boosted its stake in shares of Cadence Design Systems by 577.5% during the 3rd quarter. Close Asset Management Ltd now owns 566,679 shares of the software maker's stock worth $199,088,000 after acquiring an additional 483,039 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new stake in shares of Cadence Design Systems during the 3rd quarter worth about $128,767,000. 84.85% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on CDNS shares. Morgan Stanley lowered their target price on shares of Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 18th. Berenberg Bank set a $440.00 target price on shares of Cadence Design Systems in a research note on Wednesday. Robert W. Baird increased their target price on shares of Cadence Design Systems from $381.00 to $385.00 and gave the stock an "outperform" rating in a research note on Tuesday, April 28th. Rosenblatt Securities reissued a "buy" rating and set a $360.00 target price on shares of Cadence Design Systems in a research note on Friday, April 24th. Finally, Piper Sandler increased their target price on shares of Cadence Design Systems from $319.00 to $325.00 and gave the stock a "neutral" rating in a research note on Tuesday, April 28th. Fourteen research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $384.41.

Cadence Design Systems Stock Down 2.0%

CDNS opened at $374.05 on Thursday. Cadence Design Systems, Inc. has a twelve month low of $262.75 and a twelve month high of $383.80. 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 company has a 50-day moving average price of $317.92 and a 200 day moving average price of $312.02. The company has a market cap of $103.17 billion, a PE ratio of 87.19, a price-to-earnings-growth ratio of 4.52 and a beta of 1.13.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its quarterly earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter in the prior year, the firm earned $1.57 EPS. The company'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. Sell-side analysts expect that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current fiscal year.

Insider Activity

In related news, VP Paul Cunningham sold 1,000 shares of the company's stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $297.78, for a total transaction of $297,780.00. Following the completion of the transaction, the vice president owned 94,137 shares in the company, valued at $28,032,115.86. This represents a 1.05% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Anirudh Devgan sold 51,887 shares of the company's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $370.00, for a total transaction of $19,198,190.00. Following the transaction, the chief executive officer owned 303,525 shares of the company's stock, valued at approximately $112,304,250. This trade represents a 14.60% 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. Over the last 90 days, insiders have sold 93,138 shares of company stock worth $32,492,540. Company 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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