Handelsbanken Fonder AB Raises Holdings in Cadence Design Systems, Inc. $CDNS

Key Points

• Handelsbanken Fonder AB increased its Cadence Design Systems stake by 15.4% in the fourth quarter, ending with 137,390 shares valued at about $42.9 million.
• Cadence reported better-than-expected quarterly results, with EPS of $1.96 versus $1.91 expected and revenue of $1.47 billion, up 18.6% year over year. The company also issued FY2026 guidance of $7.85 to $7.95 EPS.
• Wall Street sentiment remains positive, with several analysts raising price targets and the stock carrying a Moderate Buy consensus rating. The average target price is about $380.59, while insiders have recently sold shares, including VP Paul Scannell.

Handelsbanken Fonder AB grew its position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 15.4% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 137,390 shares of the software maker's stock after buying an additional 18,316 shares during the period. Handelsbanken Fonder AB owned 0.05% of Cadence Design Systems worth $42,945,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Y.D. More Investments Ltd purchased a new stake in Cadence Design Systems during the 3rd quarter worth about $26,000. Caitlin John LLC purchased a new stake in Cadence Design Systems during the 3rd quarter worth about $29,000. Lodestone Wealth Management LLC purchased a new stake in Cadence Design Systems during the 4th quarter worth about $30,000. Imprint Wealth LLC purchased a new stake in Cadence Design Systems during the 3rd quarter worth about $31,000. Finally, Strategic Wealth Investment Group LLC purchased a new stake in Cadence Design Systems during the 2nd quarter worth about $32,000. Hedge funds and other institutional investors own 84.85% of the company's stock.

Cadence Design Systems Price Performance

Shares of NASDAQ CDNS opened at $338.12 on Wednesday. The firm has a market capitalization of $93.26 billion, a P/E ratio of 78.82, a P/E/G ratio of 4.10 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. The stock's 50-day simple moving average is $308.79 and its two-hundred day simple moving average is $310.50. Cadence Design Systems, Inc. has a twelve month low of $262.75 and a twelve month high of $376.45.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share for the quarter, topping analysts' consensus estimates of $1.91 by $0.05. The business had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.46 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The company's quarterly revenue was up 18.6% compared to the same quarter last year. During the same period in the prior year, the company earned $1.57 EPS. 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.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on CDNS shares. Citigroup increased their price objective on Cadence Design Systems from $385.00 to $400.00 and gave the stock a "buy" rating in a report on Wednesday, April 29th. Stifel Nicolaus set a $395.00 price objective on Cadence Design Systems in a report on Wednesday, February 18th. KeyCorp increased their price objective on Cadence Design Systems from $405.00 to $425.00 and gave the stock an "overweight" rating in a report on Tuesday, April 28th. 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 report on Tuesday, April 28th. Finally, Morgan Stanley dropped their price objective on Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating on the stock in a report on Wednesday, February 18th. Fourteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Cadence Design Systems has a consensus rating of "Moderate Buy" and an average target price of $380.59.

Insider Transactions at Cadence Design Systems

In other news, VP Paul Scannell sold 10,500 shares of the stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $339.00, for a total transaction of $3,559,500.00. Following the transaction, the vice president directly owned 33,946 shares in the company, valued at approximately $11,507,694. This represents a 23.62% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita M. Brennan sold 180 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $295.03, for a total value of $53,105.40. Following the transaction, the director owned 7,470 shares in the company, valued at $2,203,874.10. This trade represents a 2.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 40,180 shares of company stock valued at $12,924,790 over the last 90 days. Company insiders own 0.49% of the company's stock.

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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