Montag A & Associates Inc. Reduces Stake in Cadence Design Systems, Inc. $CDNS

Key Points

• Montag A & Associates reduced its stake by 41.7% in Cadence Design Systems during Q4, selling 3,716 shares and leaving 5,191 shares valued at about $1.623 million.
• Cadence beat the quarter's expectations with $1.96 EPS and $1.47B revenue (revenue +18.6% YoY) and issued FY2026 guidance of $7.85–$7.95 EPS.
• Institutional ownership stands at 84.85%, and analysts are mostly positive (14 Buys, 3 Holds) with a consensus target price of $380.59 and several recent target raises.

Montag A & Associates Inc. reduced its position in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 41.7% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 5,191 shares of the software maker's stock after selling 3,716 shares during the period. Montag A & Associates Inc.'s holdings in Cadence Design Systems were worth $1,623,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in shares of Cadence Design Systems by 1.1% in the 4th quarter. Vanguard Group Inc. now owns 27,231,070 shares of the software maker's stock worth $8,511,888,000 after buying an additional 307,753 shares during the last quarter. State Street Corp raised its holdings in Cadence Design Systems by 1.2% in the 3rd quarter. State Street Corp now owns 12,468,162 shares of the software maker's stock worth $4,379,567,000 after purchasing an additional 149,577 shares during the period. Massachusetts Financial Services Co. MA raised its holdings in Cadence Design Systems by 16.0% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 5,314,407 shares of the software maker's stock worth $1,866,739,000 after purchasing an additional 731,788 shares during the period. Invesco Ltd. raised its holdings in Cadence Design Systems by 20.4% in the 3rd quarter. Invesco Ltd. now owns 2,942,746 shares of the software maker's stock worth $1,033,669,000 after purchasing an additional 499,009 shares during the period. Finally, Principal Financial Group Inc. raised its holdings in Cadence Design Systems by 5.1% in the 3rd quarter. Principal Financial Group Inc. now owns 2,301,781 shares of the software maker's stock worth $808,530,000 after purchasing an additional 110,794 shares during the period. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Cadence Design Systems Price Performance

NASDAQ:CDNS opened at $340.94 on Monday. 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 business's 50-day simple moving average is $296.48 and its two-hundred day simple moving average is $309.06. The stock has a market cap of $94.13 billion, a PE ratio of 79.47, a P/E/G ratio of 4.04 and a beta of 1.13. Cadence Design Systems, Inc. has a 52 week low of $262.75 and a 52 week high of $376.45.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly 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 business had revenue of $1.47 billion for the quarter, compared to analysts' expectations of $1.46 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The business's quarterly revenue was up 18.6% on a year-over-year basis. During the same period last year, the firm 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, analysts forecast that Cadence Design Systems, Inc. will post 6.22 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Wells Fargo & Company raised their target price on Cadence Design Systems from $375.00 to $400.00 and gave the stock an "overweight" rating in a report on Tuesday, April 28th. Stifel Nicolaus set a $395.00 target price on Cadence Design Systems in a report on Wednesday, February 18th. Robert W. Baird raised their target price on Cadence Design Systems from $381.00 to $385.00 and gave the stock an "outperform" rating in a report on Tuesday, April 28th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $360.00 target price on shares of Cadence Design Systems in a report on Friday, April 24th. Finally, KeyCorp raised their target price on Cadence Design Systems from $405.00 to $425.00 and gave the stock an "overweight" rating in a report on Tuesday, April 28th. Fourteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Cadence Design Systems has an average rating of "Moderate Buy" and a consensus target price of $380.59.

Insider Buying and Selling at Cadence Design Systems

In other Cadence Design Systems news, Director Ita M. Brennan sold 180 shares of the firm's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $295.03, for a total transaction of $53,105.40. Following the sale, the director directly owned 7,470 shares of the company's stock, valued at $2,203,874.10. This trade represents a 2.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Paul Cunningham sold 1,000 shares of the firm's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $280.19, for a total value of $280,190.00. Following the sale, the vice president directly owned 128,586 shares in the company, valued at approximately $36,028,511.34. This represents a 0.77% 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. Insiders have sold a total of 23,680 shares of company stock valued at $7,284,250 over the last ninety days. 0.49% of the stock is currently owned by company insiders.

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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