Geode Capital Management LLC Has $2.38 Billion Stock Holdings in Cadence Design Systems, Inc. $CDNS

Key Points

• Geode Capital Management increased its Cadence Design Systems stake by 1.2% in the fourth quarter, ending with 7.63 million shares worth about $2.38 billion. The position represented roughly 2.8% of the company.
• Cadence reported strong quarterly results, with EPS of $1.96 beating estimates and revenue of $1.47 billion also topping expectations. Revenue rose 18.6% year over year, and the company issued FY 2026 guidance of $7.85 to $7.95 EPS.
• Analysts remain broadly bullish on CDNS, with 14 Buy ratings and an average target price of $384.41. The stock was trading near $374 after a 2% decline, close to its 52-week high of $383.80.

Geode Capital Management LLC lifted its holdings in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 1.2% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 7,627,272 shares of the software maker's stock after buying an additional 92,152 shares during the period. Geode Capital Management LLC owned about 2.80% of Cadence Design Systems worth $2,378,707,000 at the end of the most recent quarter.

Other large investors also recently modified their holdings of the company. Y.D. More Investments Ltd acquired a new position in shares of Cadence Design Systems during the 3rd quarter worth about $26,000. Caitlin John LLC acquired a new stake in Cadence Design Systems in the 3rd quarter valued at about $29,000. Imprint Wealth LLC acquired a new stake in Cadence Design Systems in the 3rd quarter valued at about $31,000. Lodestone Wealth Management LLC acquired a new stake in Cadence Design Systems in the 4th quarter valued at about $30,000. Finally, Cloud Capital Management LLC acquired a new stake in Cadence Design Systems in the 3rd quarter valued at about $35,000. 84.85% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities research analysts recently issued reports on CDNS shares. Citigroup raised their target price on shares of Cadence Design Systems from $385.00 to $400.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Rosenblatt Securities reiterated a "buy" rating and issued a $360.00 target price on shares of Cadence Design Systems in a research note on Friday, April 24th. Needham & Company LLC reiterated a "buy" rating and issued a $400.00 target price on shares of Cadence Design Systems in a research note on Tuesday, April 28th. Stifel Nicolaus set a $395.00 target price on shares of Cadence Design Systems in a research note on Wednesday, February 18th. Finally, Piper Sandler raised their target price on shares of Cadence Design Systems from $319.00 to $325.00 and gave the company a "neutral" rating in a research note on Tuesday, April 28th. Fourteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $384.41.

Cadence Design Systems Trading Down 2.0%

Shares of CDNS stock opened at $374.05 on Thursday. The company has a current ratio of 1.47, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38. The stock has a market cap of $103.17 billion, a P/E ratio of 87.19, a price-to-earnings-growth ratio of 4.52 and a beta of 1.13. The stock has a 50 day simple moving average of $317.92 and a 200 day simple moving average of $312.02. Cadence Design Systems, Inc. has a 1 year low of $262.75 and a 1 year high of $383.80.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.91 by $0.05. The business had revenue of $1.47 billion during 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 for the quarter was up 18.6% compared to the same quarter last year. During the same period in the previous year, the company posted $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. On average, research analysts predict that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, VP Paul Cunningham sold 1,000 shares of the business's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $337.49, for a total value of $337,490.00. Following the completion of the sale, the vice president directly owned 127,586 shares in the company, valued at approximately $43,058,999.14. The trade was a 0.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 1,071 shares of the business's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $345.06, for a total value of $369,559.26. Following the completion of the sale, the vice president owned 32,181 shares of the company's stock, valued at approximately $11,104,375.86. This trade represents a 3.22% decrease in their ownership of the stock. 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 sold a total of 93,138 shares of company stock valued at $32,492,540 in the last quarter. Company insiders own 0.49% of the company's stock.

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.

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