Tobam Has $1 Million Holdings in Cadence Design Systems, Inc. $CDNS

Key Points

• Tobam sharply increased its stake in Cadence Design Systems by 879.5% in the fourth quarter, ending with 3,203 shares valued at about $1.0 million.
• Cadence reported strong quarterly results, with earnings of $1.96 per share beating estimates and revenue rising 18.6% year over year to $1.47 billion.
• Wall Street remains largely bullish on CDNS, with 14 Buy ratings and an average price target of $386.59, while several analysts recently raised their targets.

Tobam lifted its holdings in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 879.5% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 3,203 shares of the software maker's stock after purchasing an additional 2,876 shares during the quarter. Tobam's holdings in Cadence Design Systems were worth $1,001,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in the stock. Y.D. More Investments Ltd acquired a new stake in Cadence Design Systems in the 3rd quarter valued at approximately $26,000. University of Texas Texas AM Investment Management Co. bought a new stake in Cadence Design Systems during the fourth quarter worth $28,000. Caitlin John LLC acquired a new stake in Cadence Design Systems in the 3rd quarter valued at about $29,000. Swiss RE Ltd. acquired a new stake in shares of Cadence Design Systems in the fourth quarter valued at approximately $29,000. Finally, Lodestone Wealth Management LLC acquired a new stake in shares of Cadence Design Systems in the fourth quarter valued at approximately $30,000. 84.85% of the stock is owned by institutional investors.

Cadence Design Systems Price Performance

Cadence Design Systems stock opened at $387.39 on Friday. The company has a market capitalization of $106.85 billion, a price-to-earnings ratio of 90.30, a PEG ratio of 4.59 and a beta of 1.15. The company has a current ratio of 1.47, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38. Cadence Design Systems, Inc. has a 12 month low of $262.75 and a 12 month high of $416.69. The stock's 50 day moving average is $355.14 and its 200-day moving average is $321.63.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its quarterly 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 business had revenue of $1.47 billion during the quarter, compared to analysts' expectations of $1.46 billion. During the same period last year, the firm posted $1.57 EPS. 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 expect that Cadence Design Systems, Inc. will post 6.23 EPS for the current year.

Insider Activity at Cadence Design Systems

In related news, VP Paul Scannell sold 7,081 shares of the company's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $393.91, for a total value of $2,789,276.71. Following the transaction, the vice president directly owned 32,181 shares in the company, valued at approximately $12,676,417.71. This represents a 18.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through 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 dated Monday, June 15th. The stock was sold at an average price of $391.00, for a total transaction of $782,000.00. Following the transaction, the vice president directly owned 126,586 shares in the company, valued at approximately $49,495,126. This represents a 1.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 179,557 shares of company stock valued at $67,205,642. 0.49% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on CDNS shares. Stifel Nicolaus boosted their target price on Cadence Design Systems from $395.00 to $432.00 and gave the stock a "buy" rating in a report on Tuesday, June 9th. Piper Sandler raised their price target on Cadence Design Systems from $319.00 to $325.00 and gave the company a "neutral" rating in a report on Tuesday, April 28th. Robert W. Baird lifted their price objective on shares of Cadence Design Systems from $381.00 to $385.00 and gave the stock an "outperform" rating in a research report on Tuesday, April 28th. Wells Fargo & Company upped their price objective on shares of Cadence Design Systems from $400.00 to $425.00 and gave the company an "overweight" rating in a report on Tuesday, May 26th. Finally, Citigroup increased their price objective on shares of Cadence Design Systems from $385.00 to $400.00 and gave the company a "buy" rating in a research report on Wednesday, April 29th. Fourteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently 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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