Wedge Capital Management L L P NC Lowers Holdings in Cadence Design Systems, Inc. $CDNS

Key Points

• Wedge Capital Management cut its Cadence Design Systems position by 99.7% in the second quarter, selling 193,568 shares and retaining just 576 shares valued at approximately $216,000.
• Institutional ownership remains high at 84.85%, with several major investors—including Norges Bank, J. Stern & Co., Wellington Management and Arrowstreet Capital—substantially increasing their positions.
• Analysts remain broadly bullish, with 13 Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $405.69. Cadence also exceeded quarterly EPS expectations and reported 24.2% year-over-year revenue growth.

Wedge Capital Management L L P NC decreased its holdings in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 99.7% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 576 shares of the software maker's stock after selling 193,568 shares during the period. Wedge Capital Management L L P NC's holdings in Cadence Design Systems were worth $216,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Norges Bank purchased a new position in Cadence Design Systems in the 4th quarter worth approximately $1,352,922,000. J. Stern & Co. LLP grew its holdings in Cadence Design Systems by 10,159.3% during 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 buying an additional 2,924,470 shares in the last quarter. Wellington Management Group LLP raised its position in shares of Cadence Design Systems by 218.6% during the fourth quarter. Wellington Management Group LLP now owns 2,553,225 shares of the software maker's stock valued at $798,087,000 after buying an additional 1,751,927 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of Cadence Design Systems by 232.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,430,599 shares of the software maker's stock valued at $397,521,000 after buying an additional 999,862 shares during the last quarter. Finally, Scge Management L.P. purchased a new position in shares of Cadence Design Systems in the second quarter worth $187,663,000. Hedge funds and other institutional investors own 84.85% of the company's stock.

Wall Street Analysts Forecast Growth

CDNS has been the subject of a number of research reports. Wall Street Zen upgraded shares of Cadence Design Systems from a "hold" rating to a "buy" rating in a research report on Saturday, August 1st. Citigroup boosted their price target on shares of Cadence Design Systems from $400.00 to $420.00 and gave the stock a "buy" rating in a research note on Tuesday, July 28th. Berenberg Bank set a $440.00 price objective on shares of Cadence Design Systems in a report on Wednesday, May 27th. Rosenblatt Securities raised their price objective on Cadence Design Systems from $410.00 to $420.00 and gave the company a "buy" rating in a research report on Tuesday, July 28th. Finally, Weiss Ratings raised Cadence Design Systems from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, July 30th. Thirteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $405.69.

Insiders Place Their Bets

In related news, VP Paul Cunningham sold 2,000 shares of the company's stock in a transaction dated Monday, June 15th. The shares were 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 position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anirudh Devgan sold 25,005 shares of the company's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $415.00, for a total transaction of $10,377,075.00. Following the transaction, the chief executive officer owned 253,519 shares in the company, valued at $105,210,385. The trade was a 8.98% 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 quarter, insiders have sold 140,557 shares of company stock valued at $54,631,737. 0.49% of the stock is currently owned by company insiders.

Cadence Design Systems Trading Up 0.3%

Shares of CDNS opened at $324.82 on Friday. The stock has a market capitalization of $89.45 billion, a PE ratio of 64.58, a P/E/G ratio of 3.49 and a beta of 1.15. The company's fifty day moving average is $360.72 and its 200 day moving average is $331.06. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.53 and a current ratio of 1.74. Cadence Design Systems, Inc. has a fifty-two week low of $262.75 and a fifty-two week high of $416.69.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, beating the consensus estimate of $2.05 by $0.06. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The business had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.58 billion. During the same quarter last year, the business earned $1.65 earnings per share. Cadence Design Systems's quarterly revenue was up 24.2% compared to the same quarter last year. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS. Sell-side analysts expect that Cadence Design Systems, Inc. will post 6.4 earnings per share for the current fiscal year.

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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