Mediolanum International Funds Ltd Grows Position in Cadence Design Systems, Inc. $CDNS

Key Points

• Mediolanum International Funds Ltd increased its stake in Cadence Design Systems by 73.6% in the first quarter, bringing its holdings to 47,676 shares worth about $12.9 million.
• Cadence saw notable insider selling, including CEO Anirudh Devgan and VP Paul Cunningham, with insiders selling 157,057 shares worth roughly $60.3 million over the last 90 days.
• Despite recent share weakness, analysts remain broadly positive: several firms raised price targets, and Wall Street’s consensus rating is Moderate Buy with an average target of about $393.65.

Mediolanum International Funds Ltd raised its holdings in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 73.6% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 47,676 shares of the software maker's stock after acquiring an additional 20,220 shares during the quarter. Mediolanum International Funds Ltd's holdings in Cadence Design Systems were worth $12,914,000 as of its most recent filing with the SEC.

Several other institutional investors also recently made changes to their positions in the stock. MUFG Securities EMEA plc grew its position in Cadence Design Systems by 113.9% during the fourth quarter. MUFG Securities EMEA plc now owns 11,159 shares of the software maker's stock worth $3,488,000 after buying an additional 5,943 shares during the period. Sun Financial Inc acquired a new stake in shares of Cadence Design Systems during the 4th quarter valued at approximately $1,225,000. DDD Partners LLC lifted its position in shares of 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 acquiring an additional 9,024 shares during the period. Leonteq Securities AG purchased a new stake in shares of Cadence Design Systems during the 4th quarter worth approximately $1,105,000. Finally, PNC Financial Services Group Inc. grew its holdings in shares of 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 acquiring an additional 3,562 shares during the period. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Cadence Design Systems

In other news, CEO Anirudh Devgan sold 51,887 shares of the stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $370.00, for a total transaction of $19,198,190.00. Following the transaction, the chief executive officer directly owned 303,525 shares in the company, valued at $112,304,250. This represents a 14.60% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 2,000 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $391.00, for a total transaction of $782,000.00. Following the completion of the sale, the vice president directly owned 126,586 shares in the company, valued at $49,495,126. This represents a 1.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 157,057 shares of company stock worth $60,272,277. Corporate insiders own 0.49% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on CDNS shares. Stifel Nicolaus lifted their price objective on Cadence Design Systems from $395.00 to $432.00 and gave the stock a "buy" rating in a report on Tuesday, June 9th. Benchmark initiated coverage on Cadence Design Systems in a report on Wednesday. They issued a "buy" rating and a $450.00 target price on the stock. Rosenblatt Securities raised their price target on Cadence Design Systems from $375.00 to $410.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Citigroup lifted 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, April 29th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Cadence Design Systems in a research report on Thursday, July 2nd. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $393.65.

Cadence Design Systems Price Performance

Shares of NASDAQ:CDNS opened at $330.11 on Monday. The company has a market cap 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 200-day simple moving average of $328.65. Cadence Design Systems, Inc. has a 52 week low of $262.75 and a 52 week high of $416.69. The company has a quick ratio of 1.32, a current ratio of 1.47 and a debt-to-equity ratio of 0.38.

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 the consensus estimate of $1.91 by $0.05. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The firm had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.46 billion. During the same period in the prior year, the business posted $1.57 earnings per share. The firm's revenue for the quarter was up 18.6% compared to the same quarter last year. 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. Equities research analysts forecast that Cadence Design Systems, Inc. will post 6.23 EPS for the current year.

Key Stories 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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