Sumitomo Life Insurance Co. Increases Stock Position in Cadence Design Systems, Inc. $CDNS

Key Points

• Sumitomo Life Insurance Co. increased its Cadence Design Systems stake by 22.9% in Q4, adding 4,400 shares to bring its total to 23,600 shares worth about $7.38 million.
• Institutional ownership remains very heavy, with hedge funds and other institutions holding 84.85% of Cadence’s shares. Several large investors, including Vanguard, State Street, Geode, Norges Bank, and Invesco, also recently added to their positions.
• Cadence reported better-than-expected quarterly results, with EPS of $1.96 versus $1.91 expected and revenue of $1.47 billion, up 18.6% year over year. Analysts remain largely bullish, with 14 Buy ratings and an average price target of $386.59.

Sumitomo Life Insurance Co. grew its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 22.9% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 23,600 shares of the software maker's stock after acquiring an additional 4,400 shares during the quarter. Sumitomo Life Insurance Co.'s holdings in Cadence Design Systems were worth $7,377,000 as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Vanguard Group Inc. boosted its holdings in shares of Cadence Design Systems by 1.1% in the fourth 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 boosted its holdings in shares of Cadence Design Systems by 1.2% in the third quarter. State Street Corp now owns 12,468,162 shares of the software maker's stock worth $4,379,567,000 after buying an additional 149,577 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Cadence Design Systems by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 7,627,272 shares of the software maker's stock worth $2,378,707,000 after buying an additional 92,152 shares during the last quarter. Norges Bank purchased a new position in shares of Cadence Design Systems in the fourth quarter worth approximately $1,352,922,000. Finally, Invesco Ltd. boosted its holdings in shares of Cadence Design Systems by 20.4% in the third quarter. Invesco Ltd. now owns 2,942,746 shares of the software maker's stock worth $1,033,669,000 after buying an additional 499,009 shares during the last quarter. Hedge funds and other institutional investors own 84.85% of the company's stock.

Cadence Design Systems Price Performance

Shares of NASDAQ:CDNS opened at $384.96 on Friday. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.47 and a quick ratio of 1.32. Cadence Design Systems, Inc. has a 1-year low of $262.75 and a 1-year high of $416.69. The company has a market capitalization of $106.18 billion, a P/E ratio of 89.73, a P/E/G ratio of 4.54 and a beta of 1.15. The firm's 50 day simple moving average is $344.32 and its two-hundred day simple moving average is $318.73.

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 $1.91 by $0.05. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The business had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter in the previous year, the firm earned $1.57 earnings per share. The company's revenue for the quarter 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 expect that Cadence Design Systems, Inc. will post 6.23 EPS for the current fiscal year.

Insider Activity

In other Cadence Design Systems news, CEO Anirudh Devgan sold 51,887 shares of Cadence Design Systems stock in a transaction that occurred on 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 owned 303,525 shares of the company's stock, valued at $112,304,250. The trade was a 14.60% decrease in their ownership of the stock. The sale was disclosed in a document filed 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, CFO John M. Wall sold 21,500 shares of Cadence Design Systems stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $309.45, for a total transaction of $6,653,175.00. Following the transaction, the chief financial officer directly owned 86,875 shares in the company, valued at $26,883,468.75. This represents a 19.84% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 176,226 shares of company stock worth $65,900,542 over the last ninety days. Company insiders own 0.49% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the stock. Robert W. Baird raised their price objective on shares of Cadence Design Systems from $381.00 to $385.00 and gave the stock an "outperform" rating in a report on Tuesday, April 28th. Wells Fargo & Company raised their price objective on shares of Cadence Design Systems from $400.00 to $425.00 and gave the stock an "overweight" rating in a report on Tuesday, May 26th. KeyCorp raised their price objective on shares of Cadence Design Systems from $405.00 to $425.00 and gave the stock an "overweight" rating in a report on Tuesday, April 28th. Citigroup raised their price objective on shares of Cadence Design Systems from $385.00 to $400.00 and gave the stock a "buy" rating in a report on Wednesday, April 29th. Finally, Needham & Company LLC reissued a "buy" rating and issued a $400.00 price objective on shares of Cadence Design Systems in a report on Tuesday, April 28th. Fourteen research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $386.59.

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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