Jennison Associates LLC Sells 1,016,098 Shares of Cadence Design Systems, Inc. $CDNS

Key Points

• Jennison Associates cut its Cadence stake by 11.6%, selling 1,016,098 shares in Q4 and now owns 7,715,550 shares (about 2.83% of CDNS) valued at roughly $2.41 billion.
• Cadence beat the quarter's estimates with EPS of $1.96 versus $1.89 and revenue of $1.47 billion (up 18.6% YoY), and issued FY2026 guidance of $7.85–$7.95 EPS and Q2 guidance of $2.02–$2.08 EPS.
• Analysts remain positive, giving Cadence a consensus rating of "Moderate Buy" with an average target of $380.59, and several firms recently raised price targets (e.g., KeyCorp to $425, Citigroup and Wells Fargo to $400).

Jennison Associates LLC cut its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 11.6% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 7,715,550 shares of the software maker's stock after selling 1,016,098 shares during the quarter. Cadence Design Systems accounts for about 1.4% of Jennison Associates LLC's holdings, making the stock its 20th biggest holding. Jennison Associates LLC owned approximately 2.83% of Cadence Design Systems worth $2,411,727,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also bought and sold shares of the company. Y.D. More Investments Ltd purchased a new stake in Cadence Design Systems in the third quarter worth approximately $26,000. Caitlin John LLC bought a new stake in shares of Cadence Design Systems in the third quarter worth about $29,000. Imprint Wealth LLC bought a new stake in shares of Cadence Design Systems in the third quarter worth about $31,000. Lodestone Wealth Management LLC purchased a new stake in Cadence Design Systems in the fourth quarter worth $30,000. Finally, Cloud Capital Management LLC purchased a new stake in Cadence Design Systems in the third quarter worth $35,000. Hedge funds and other institutional investors own 84.85% of the company's stock.

Analyst Ratings Changes

A number of brokerages recently commented on CDNS. Rosenblatt Securities reaffirmed a "buy" rating and issued a $360.00 price target on shares of Cadence Design Systems in a research note on Friday, April 24th. KeyCorp raised their price target on Cadence Design Systems from $405.00 to $425.00 and gave the stock an "overweight" rating in a research note on Tuesday. Robert W. Baird raised their price target on Cadence Design Systems from $381.00 to $385.00 and gave the stock an "outperform" rating in a research note on Tuesday. Citigroup raised their price target on Cadence Design Systems from $385.00 to $400.00 and gave the stock a "buy" rating in a research note on Wednesday. Finally, Wells Fargo & Company raised their price target on Cadence Design Systems from $375.00 to $400.00 and gave the stock an "overweight" rating in a research note on Tuesday. Fourteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Cadence Design Systems currently has a consensus rating of "Moderate Buy" and an average target price of $380.59.

Cadence Design Systems Price Performance

CDNS opened at $321.29 on Thursday. The stock has a fifty day simple moving average of $295.82 and a two-hundred day simple moving average of $309.19. The company has a current ratio of 2.86, a quick ratio of 2.67 and a debt-to-equity ratio of 0.45. The company has a market cap of $88.70 billion, a price-to-earnings ratio of 74.75, a price-to-earnings-growth ratio of 4.04 and a beta of 1.04. Cadence Design Systems, Inc. has a 12-month low of $262.75 and a 12-month high of $376.45.

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 for the quarter, beating the consensus estimate of $1.89 by $0.07. Cadence Design Systems had a return on equity of 30.26% and a net margin of 21.18%.The firm had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.45 billion. During the same period last year, the company earned $1.57 earnings per share. The company's revenue 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. Research analysts predict that Cadence Design Systems, Inc. will post 6.51 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO John M. Wall sold 21,500 shares of the firm's stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $309.45, for a total transaction of $6,653,175.00. Following the completion of the transaction, the chief financial officer directly owned 86,875 shares in the company, valued at $26,883,468.75. This trade represents a 19.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 1,000 shares of the firm's 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 owned 94,137 shares of the company's stock, 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. Insiders sold 24,680 shares of company stock worth $7,579,340 over the last three months. 0.49% of the stock is currently owned by corporate insiders.

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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