Jennison Associates LLC Sells 1,953,645 Shares of Cadence Design Systems, Inc. $CDNS

Key Points

• Jennison Associates LLC cut its Cadence Design Systems stake by 25.3% in the first quarter, selling 1.95 million shares and leaving it with 5.76 million shares worth about $1.6 billion.
• Insiders have also been selling shares, including VP Paul Cunningham and VP Paul Scannell, with total insider sales of 157,057 shares worth about $60.3 million over the past three months.
• Cadence posted solid quarterly results and upbeat guidance, beating EPS and revenue estimates in its latest report, while analysts remain mostly positive with a consensus “Moderate Buy” and a target price near $393.65.

Jennison Associates LLC lessened its holdings in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 25.3% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 5,761,905 shares of the software maker's stock after selling 1,953,645 shares during the period. Cadence Design Systems comprises approximately 1.1% of Jennison Associates LLC's holdings, making the stock its 22nd largest holding. Jennison Associates LLC owned about 2.09% of Cadence Design Systems worth $1,601,061,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also bought and sold shares of CDNS. MUFG Securities EMEA plc lifted its stake in Cadence Design Systems by 113.9% in the fourth quarter. MUFG Securities EMEA plc now owns 11,159 shares of the software maker's stock worth $3,488,000 after acquiring an additional 5,943 shares during the period. Sun Financial Inc bought a new stake in Cadence Design Systems in the fourth quarter valued at $1,225,000. DDD Partners LLC increased its position in Cadence Design Systems by 27.4% during the 4th quarter. DDD Partners LLC now owns 41,968 shares of the software maker's stock valued at $13,118,000 after purchasing an additional 9,024 shares during the period. Leonteq Securities AG purchased a new position in Cadence Design Systems during the 4th quarter valued at $1,105,000. Finally, PNC Financial Services Group Inc. raised its holdings in Cadence Design Systems by 1.0% in the 4th quarter. PNC Financial Services Group Inc. now owns 369,717 shares of the software maker's stock worth $115,566,000 after purchasing an additional 3,562 shares in the last quarter. Institutional investors own 84.85% of the company's stock.

Insider Buying and Selling at Cadence Design Systems

In other Cadence Design Systems news, VP Paul Cunningham sold 2,000 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $391.00, for a total transaction of $782,000.00. Following the completion of the transaction, the vice president owned 126,586 shares of the company's stock, valued at approximately $49,495,126. This trade represents a 1.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 7,081 shares of Cadence Design Systems stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $393.91, for a total transaction of $2,789,276.71. Following the transaction, the vice president owned 32,181 shares of the company's stock, valued at $12,676,417.71. The trade was a 18.04% 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 have sold a total of 157,057 shares of company stock valued at $60,272,277 over the last three months. 0.49% of the stock is currently owned by corporate insiders.

Cadence Design Systems Stock Performance

Shares of Cadence Design Systems stock opened at $330.11 on Friday. 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 firm has a market capitalization of $91.05 billion, a P/E ratio of 76.95, a P/E/G ratio of 3.91 and a beta of 1.15. The business has a fifty day simple moving average of $376.09 and a two-hundred day simple moving average of $328.57. Cadence Design Systems, Inc. has a 12 month low of $262.75 and a 12 month 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 earnings per share for the quarter, topping analysts' consensus estimates of $1.91 by $0.05. The firm had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.46 billion. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The company's revenue was up 18.6% compared to the same quarter last year. During the same period in the prior year, the firm 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. On average, equities analysts forecast that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. Stifel Nicolaus raised their target price on shares of Cadence Design Systems from $395.00 to $432.00 and gave the stock a "buy" rating in a research report on Tuesday, June 9th. Needham & Company LLC reiterated a "buy" rating and set a $400.00 price target on shares of Cadence Design Systems in a research report 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 research note on Tuesday, April 28th. Weiss Ratings restated a "hold (c)" rating on shares of Cadence Design Systems in a report on Thursday, July 2nd. Finally, KeyCorp lifted their price objective on Cadence Design Systems from $405.00 to $425.00 and gave the company an "overweight" rating in a research report on Tuesday, April 28th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $393.65.

Key Headlines Impacting Cadence Design Systems

Here are the key news stories impacting Cadence Design Systems this week:

• Positive Sentiment: Benchmark upgraded Cadence to Strong Buy, and recent brokerage commentary put the average price target around $387, indicating Wall Street still sees upside from current levels. Zacks.com
• Positive Sentiment: Cadence recently launched new AI products, including the AuraStack AI Super Agent for PCB and advanced packaging design, reinforcing the company’s growth narrative in AI-driven design workflows. Business Wire article
• Positive Sentiment: The company also announced a partnership with Rapidus to advance agentic AI for advanced SoC design, which could support longer-term demand for Cadence’s software tools. Business Wire article
• Neutral Sentiment: Cadence is due to report second-quarter results on July 27, and some of the weakness may reflect investors taking profits or reducing exposure ahead of earnings. MSN article
• Negative Sentiment: Shares are also being hit by broader fears that Moonshot and other AI-driven tools could disrupt the EDA industry, pressuring Cadence and peers like Synopsys on concerns about future pricing power and competition. MSN article

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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