Sumitomo Mitsui Trust Group Inc. Cuts Holdings in Cadence Design Systems, Inc. $CDNS

Key Points

• Sumitomo Mitsui Trust Group trimmed its Cadence Design Systems stake by 2.2% in the first quarter, though it still held more than 1 million shares valued at about $283 million.
• Cadence reported strong quarterly results, with EPS of $1.96 beating estimates and revenue of $1.47 billion topping expectations; revenue also rose 18.6% year over year.
• Analysts remain broadly positive on the stock, with a Moderate Buy consensus and a target price of $386.59, even as some insiders recently sold shares under pre-arranged trading plans.

Sumitomo Mitsui Trust Group Inc. lessened its holdings in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 2.2% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,018,328 shares of the software maker's stock after selling 23,274 shares during the period. Sumitomo Mitsui Trust Group Inc. owned about 0.37% of Cadence Design Systems worth $282,963,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds also recently bought and sold shares of the company. Norges Bank acquired a new stake in shares of Cadence Design Systems in the fourth quarter worth approximately $1,352,922,000. J. Stern & Co. LLP raised its stake in Cadence Design Systems by 10,159.3% in the 4th quarter. J. Stern & Co. LLP now owns 2,953,256 shares of the software maker's stock valued at $923,129,000 after purchasing an additional 2,924,470 shares during the last quarter. Wellington Management Group LLP raised its stake in Cadence Design Systems by 218.6% in the 4th quarter. Wellington Management Group LLP now owns 2,553,225 shares of the software maker's stock valued at $798,087,000 after purchasing an additional 1,751,927 shares during the last quarter. Assenagon Asset Management S.A. lifted its holdings in Cadence Design Systems by 120.9% in the 4th quarter. Assenagon Asset Management S.A. now owns 1,124,417 shares of the software maker's stock valued at $351,470,000 after purchasing an additional 615,440 shares in the last quarter. Finally, Scge Management L.P. acquired a new stake in Cadence Design Systems during the 2nd quarter worth $187,663,000. Hedge funds and other institutional investors own 84.85% of the company's stock.

Cadence Design Systems Price Performance

Shares of CDNS opened at $374.06 on Thursday. Cadence Design Systems, Inc. has a 1-year low of $262.75 and a 1-year high of $416.69. The stock has a market cap of $103.17 billion, a PE ratio of 87.19, a P/E/G ratio of 4.39 and a beta of 1.15. The firm has a 50-day simple moving average of $372.53 and a two-hundred day simple moving average of $326.04. 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 (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings data on Monday, April 27th. The software maker reported $1.96 EPS for the quarter, topping 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 firm had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.46 billion. During the same period in the prior year, the business posted $1.57 EPS. The business'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. As a group, analysts forecast that Cadence Design Systems, Inc. will post 6.23 EPS for the current year.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. Needham & Company LLC reaffirmed a "buy" rating and set a $400.00 target price on shares of Cadence Design Systems in a report on Tuesday, April 28th. Wells Fargo & Company boosted their price target on shares of Cadence Design Systems from $400.00 to $425.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 26th. Piper Sandler upped their price target on Cadence Design Systems from $319.00 to $325.00 and gave the company a "neutral" rating in a research report on Tuesday, April 28th. Citigroup upped their price objective on shares of Cadence Design Systems from $385.00 to $400.00 and gave the company a "buy" rating in a report on Wednesday, April 29th. Finally, KeyCorp increased their price objective on Cadence Design Systems from $405.00 to $425.00 and gave the stock an "overweight" rating in a research report on Tuesday, April 28th. Fourteen investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $386.59.

Insider Activity at Cadence Design Systems

In other news, CFO John M. Wall sold 21,500 shares of the firm's stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $309.45, for a total transaction of $6,653,175.00. Following the completion of the transaction, the chief financial officer directly owned 86,875 shares in the company, valued at $26,883,468.75. This trade represents a 19.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 10,500 shares of Cadence Design Systems stock in a transaction on Friday, May 1st. The shares were sold at an average price of $339.00, for a total value of $3,559,500.00. Following the completion of the sale, the vice president directly owned 33,946 shares of the company's stock, valued at $11,507,694. The trade was a 23.62% 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 sold 178,557 shares of company stock valued at $66,925,452 over the last ninety days. 0.49% of the stock is owned by insiders.

Cadence Design Systems Company 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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