Franklin Resources Inc. Trims Stake in Cadence Design Systems, Inc. $CDNS

Key Points

• Franklin Resources trimmed its stake in Cadence by 7.1% in Q3, selling 300,936 shares and ending the quarter with 3,942,491 shares (about 1.45% of the company) valued at roughly $1.385 billion.
• Several institutions made notable moves: Norges Bank bought a new stake worth ~$1.19 billion, Massachusetts Financial Services increased its holding to 5.31 million shares, and overall institutional ownership stands at about 84.85%.
• Analysts have a consensus rating of Moderate Buy with a $376.50 target; Cadence recently beat Q3 EPS estimates ($1.99 vs. $1.91) and trades around $293 with a market cap near $80 billion.

Franklin Resources Inc. cut its holdings in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 7.1% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 3,942,491 shares of the software maker's stock after selling 300,936 shares during the quarter. Franklin Resources Inc. owned approximately 1.45% of Cadence Design Systems worth $1,384,840,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also made changes to their positions in the company. Norges Bank purchased a new stake in shares of Cadence Design Systems in the second quarter worth $1,190,618,000. Massachusetts Financial Services Co. MA raised its position in shares of Cadence Design Systems by 16.0% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 5,314,407 shares of the software maker's stock worth $1,866,739,000 after purchasing an additional 731,788 shares during the last quarter. Voya Investment Management LLC boosted its stake in Cadence Design Systems by 914.2% in the 3rd quarter. Voya Investment Management LLC now owns 691,071 shares of the software maker's stock worth $242,746,000 after purchasing an additional 622,934 shares in the last quarter. Scge Management L.P. purchased a new stake in Cadence Design Systems during the 2nd quarter valued at about $187,663,000. Finally, Close Asset Management Ltd grew its position in 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 valued at $199,088,000 after purchasing an additional 483,039 shares during the last quarter. Institutional investors own 84.85% of the company's stock.

Analyst Ratings Changes

Several research analysts have issued reports on CDNS shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Cadence Design Systems in a report on Monday, December 29th. Citigroup started coverage on shares of Cadence Design Systems in a report on Monday, November 24th. They set a "buy" rating and a $385.00 price target on the stock. Stifel Nicolaus set a $395.00 price target on shares of Cadence Design Systems in a research report on Wednesday, February 18th. Oppenheimer upgraded shares of Cadence Design Systems from an "underperform" rating to a "market perform" rating and set a $275.00 price objective for the company in a report on Monday, December 1st. Finally, Needham & Company LLC reiterated a "buy" rating and set a $390.00 target price on shares of Cadence Design Systems in a research note on Wednesday, February 18th. Fifteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $376.50.

Cadence Design Systems Stock Performance

Shares of NASDAQ CDNS opened at $293.29 on Wednesday. The firm's 50-day moving average price is $303.22 and its 200-day moving average price is $323.10. Cadence Design Systems, Inc. has a 52-week low of $221.56 and a 52-week high of $376.45. The company has a market cap of $79.97 billion, a PE ratio of 72.24, a PEG ratio of 3.58 and a beta of 1.00. The company has a quick ratio of 2.67, a current ratio of 2.86 and a debt-to-equity ratio of 0.45.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its quarterly earnings data on Tuesday, February 17th. The software maker reported $1.99 earnings per share for the quarter, beating the consensus estimate of $1.91 by $0.08. The firm had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.42 billion. Cadence Design Systems had a net margin of 20.93% and a return on equity of 29.34%. The firm's quarterly revenue was up 6.2% on a year-over-year basis. During the same period in the previous year, the company earned $1.88 earnings per share. Cadence Design Systems has set its Q1 2026 guidance at 1.890-1.950 EPS and its FY 2026 guidance at 8.050-8.150 EPS. As a group, analysts anticipate that Cadence Design Systems, Inc. will post 5.41 EPS for the current year.

Insider Buying and Selling

In other Cadence Design Systems news, CFO John M. Wall sold 27,805 shares of the business's stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $318.57, for a total transaction of $8,857,838.85. Following the completion of the sale, the chief financial officer directly owned 69,957 shares in the company, valued at approximately $22,286,201.49. The trade was a 28.44% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Paul Cunningham sold 1,000 shares of the stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $297.78, for a total value of $297,780.00. Following the transaction, the vice president directly owned 94,137 shares in the company, valued at $28,032,115.86. The trade was a 1.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 30,810 shares of company stock valued at $9,767,972. 0.37% of the stock is currently owned by insiders.

Cadence Design Systems 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.

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