HB Wealth Management LLC Trims Stock Position in Cadence Design Systems, Inc. $CDNS

Key Points

• HB Wealth Management LLC cut its Cadence Design Systems stake by 21.8% in the first quarter, selling 4,186 shares and leaving it with 15,047 shares valued at about $4.18 million.
• Wall Street remains constructive on CDNS, with 14 analysts rating it a Buy and three Hold, giving it a consensus “Moderate Buy” and an average price target of $386.59.
• Cadence posted solid quarterly results, reporting EPS of $1.96 versus estimates of $1.91 and revenue of $1.47 billion, while revenue rose 18.6% year over year.

HB Wealth Management LLC trimmed its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 21.8% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 15,047 shares of the software maker's stock after selling 4,186 shares during the quarter. HB Wealth Management LLC's holdings in Cadence Design Systems were worth $4,181,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. Brown Lisle Cummings Inc. increased its holdings in shares of Cadence Design Systems by 860.0% in the first quarter. Brown Lisle Cummings Inc. now owns 96 shares of the software maker's stock valued at $27,000 after purchasing an additional 86 shares during the period. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Cadence Design Systems during the fourth quarter worth $28,000. Swiss RE Ltd. acquired a new stake in shares of Cadence Design Systems during the fourth quarter worth $29,000. Lodestone Wealth Management LLC purchased a new position in Cadence Design Systems in the 4th quarter valued at $30,000. Finally, Imprint Wealth LLC purchased a new position in Cadence Design Systems in the 3rd quarter valued at $31,000. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on CDNS shares. Rosenblatt Securities restated a "buy" rating and set a $360.00 price objective on shares of Cadence Design Systems in a research report on Friday, April 24th. Wells Fargo & Company lifted their target price on shares of Cadence Design Systems from $400.00 to $425.00 and gave the company an "overweight" rating in a report on Tuesday, May 26th. KeyCorp boosted their price target on shares of Cadence Design Systems from $405.00 to $425.00 and gave the stock an "overweight" rating in a research note on Tuesday, April 28th. Piper Sandler increased their price target on shares of Cadence Design Systems from $319.00 to $325.00 and gave the stock a "neutral" rating in a report on Tuesday, April 28th. Finally, Stifel Nicolaus increased their price target on shares of Cadence Design Systems from $395.00 to $432.00 and gave the stock a "buy" rating in a report on Tuesday, June 9th. Fourteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $386.59.

Cadence Design Systems Stock Performance

Shares of CDNS stock opened at $373.14 on Monday. The business's fifty day moving average price is $369.80 and its 200 day moving average price is $324.82. The firm has a market capitalization of $102.92 billion, a PE ratio of 86.98, a P/E/G ratio of 4.42 and a beta of 1.15. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.47 and a quick ratio of 1.32. Cadence Design Systems, Inc. has a 1-year low of $262.75 and a 1-year 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, beating analysts' consensus estimates of $1.91 by $0.05. The company had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.46 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.Cadence Design Systems's quarterly revenue was up 18.6% compared to the same quarter last year. During the same quarter last year, the company earned $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. As a group, sell-side analysts forecast that Cadence Design Systems, Inc. will post 6.23 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO John M. Wall sold 21,500 shares of the business's stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $309.45, for a total transaction of $6,653,175.00. Following the sale, the chief financial officer owned 86,875 shares of the company's stock, valued at approximately $26,883,468.75. The trade was a 19.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 10,500 shares of the company's 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 owned 33,946 shares in the company, valued at $11,507,694. The trade was a 23.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 178,557 shares of company stock worth $66,925,452. 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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