Stephens Investment Management Group LLC Reduces Position in Cadence Design Systems, Inc. $CDNS

Key Points

• Stephens Investment Management Group LLC reduced its holdings in Cadence Design Systems by 25.1%, selling 23,875 shares and owning 71,127 shares valued at approximately $21.9 million at the end of Q2.
• Cadence Design Systems reported earnings of $1.65 per share, exceeding analyst expectations, with revenue reaching $1.28 billion, up 20.2% compared to the previous year.
• Multiple analysts adjusted their price targets for Cadence, with JPMorgan Chase raising it to $390.00 and KeyCorp to $405.00, showing optimistic sentiment for the stock.

Stephens Investment Management Group LLC cut its position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 25.1% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 71,127 shares of the software maker's stock after selling 23,875 shares during the period. Stephens Investment Management Group LLC's holdings in Cadence Design Systems were worth $21,918,000 at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in CDNS. Smallwood Wealth Investment Management LLC purchased a new stake in Cadence Design Systems in the 1st quarter valued at about $25,000. Costello Asset Management INC purchased a new stake in Cadence Design Systems in the 1st quarter valued at about $25,000. Barrett & Company Inc. purchased a new stake in Cadence Design Systems in the 2nd quarter valued at about $31,000. Saudi Central Bank purchased a new stake in Cadence Design Systems in the 1st quarter valued at about $27,000. Finally, Valley National Advisers Inc. boosted its position in Cadence Design Systems by 707.1% in the 1st quarter. Valley National Advisers Inc. now owns 113 shares of the software maker's stock valued at $28,000 after buying an additional 99 shares during the period. 84.85% of the stock is owned by hedge funds and other institutional investors.

Cadence Design Systems Price Performance

Shares of CDNS opened at $330.51 on Thursday. The firm has a market capitalization of $90.06 billion, a PE ratio of 89.33, a price-to-earnings-growth ratio of 4.37 and a beta of 0.99. The company has a debt-to-equity ratio of 0.49, a current ratio of 2.82 and a quick ratio of 2.67. Cadence Design Systems, Inc. has a 1-year low of $221.56 and a 1-year high of $376.45. The company's fifty day moving average price is $347.32 and its 200-day moving average price is $320.58.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings data on Monday, July 28th. The software maker reported $1.65 earnings per share for the quarter, beating analysts' consensus estimates of $1.56 by $0.09. The firm had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.25 billion. Cadence Design Systems had a net margin of 19.88% and a return on equity of 29.65%. The business's quarterly revenue was up 20.2% compared to the same quarter last year. During the same period in the previous year, the company earned $1.28 earnings per share. Cadence Design Systems has set its Q3 2025 guidance at 1.750-1.810 EPS. FY 2025 guidance at 6.850-6.950 EPS. On average, equities research analysts predict that Cadence Design Systems, Inc. will post 5.41 EPS for the current year.

Analysts Set New Price Targets

CDNS has been the subject of several research reports. Mizuho upped their price target on shares of Cadence Design Systems from $360.00 to $375.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 29th. JPMorgan Chase & Co. upped their price target on shares of Cadence Design Systems from $330.00 to $390.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 29th. Weiss Ratings reiterated a "hold (c)" rating on shares of Cadence Design Systems in a research note on Wednesday, October 8th. KeyCorp boosted their price objective on shares of Cadence Design Systems from $358.00 to $405.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 29th. Finally, BNP Paribas Exane began coverage on shares of Cadence Design Systems in a research note on Thursday, October 2nd. They set an "outperform" rating and a $400.00 price objective for the company. Thirteen analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $369.71.

Insider Activity

In other news, CFO John M. Wall sold 7,500 shares of the business's stock in a transaction on Tuesday, September 30th. The shares were sold at an average price of $349.16, for a total transaction of $2,618,700.00. Following the sale, the chief financial officer directly owned 70,715 shares of the company's stock, valued at $24,690,849.40. The trade was a 9.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Paul Cunningham sold 1,000 shares of the stock in a transaction on Wednesday, October 1st. The stock was sold at an average price of $348.27, for a total transaction of $348,270.00. Following the completion of the sale, the vice president owned 99,672 shares in the company, valued at $34,712,767.44. The trade was a 0.99% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 10,680 shares of company stock valued at $3,729,852 over the last ninety days. 1.99% of the stock is currently owned by insiders.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification.

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