Rakuten Investment Management Inc. Increases Position in Cadence Design Systems, Inc. $CDNS

Rakuten Investment Management Inc. lifted its holdings in Cadence Design Systems, Inc. (NASDAQ:CDNS) by 205.6% in the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 50,512 shares of the software maker’s stock after purchasing an additional 33,982 shares during the period. Rakuten Investment Management Inc.’s holdings in Cadence Design Systems were worth $16,048,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also recently modified their holdings of the business. Sun Financial Inc acquired a new stake in Cadence Design Systems in the fourth quarter valued at about $1,225,000. MUFG Securities EMEA plc lifted its position in Cadence Design Systems by 113.9% in the fourth quarter. MUFG Securities EMEA plc now owns 11,159 shares of the software maker’s stock valued at $3,488,000 after purchasing an additional 5,943 shares during the period. DDD Partners LLC lifted its position in Cadence Design Systems by 27.4% in the fourth quarter. DDD Partners LLC now owns 41,968 shares of the software maker’s stock valued at $13,118,000 after purchasing an additional 9,024 shares during the period. Leonteq Securities AG acquired a new stake in Cadence Design Systems in the fourth quarter valued at about $1,105,000. Finally, Allianz SE acquired a new stake in Cadence Design Systems in the third quarter valued at about $1,265,000. Hedge funds and other institutional investors own 84.85% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on CDNS. Morgan Stanley dropped their target price on shares of Cadence Design Systems from $385.00 to $370.00 and set an “overweight” rating for the company in a report on Wednesday, February 18th. Piper Sandler increased their target price on shares of 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 increased their target price on shares of Cadence Design Systems from $381.00 to $385.00 and gave the company an “outperform” rating in a report on Tuesday, April 28th. KeyCorp increased their target price on shares of Cadence Design Systems from $405.00 to $425.00 and gave the company an “overweight” rating in a report on Tuesday, April 28th. Finally, Wells Fargo & Company increased their target price 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. 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, Cadence Design Systems currently has an average rating of “Moderate Buy” and an average target price of $386.59.

Cadence Design Systems Trading Up 2.5%

Shares of CDNS opened at $394.50 on Tuesday. The stock has a market cap of $108.81 billion, a price-to-earnings ratio of 91.96, a price-to-earnings-growth ratio of 4.56 and a beta of 1.15. 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 firm has a 50 day simple moving average of $346.64 and a 200-day simple moving average of $319.47.

Cadence Design Systems (NASDAQ:CDNS) last released its earnings results on Monday, April 27th. The software maker reported $1.96 EPS for the quarter, topping the consensus estimate of $1.91 by $0.05. The firm had revenue of $1.47 billion during the quarter, compared to analysts’ expectations of $1.46 billion. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. Cadence Design Systems’s revenue for the quarter was up 18.6% on a year-over-year basis. During the same period in the previous year, the company earned $1.57 EPS. 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 analysts forecast that Cadence Design Systems, Inc. will post 6.23 EPS for the current fiscal year.

Insider Activity at Cadence Design Systems

In other news, CFO John M. Wall sold 5,000 shares of the business’s stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $348.71, for a total transaction of $1,743,550.00. Following the completion of the sale, the chief financial officer directly owned 81,875 shares of the company’s stock, valued at $28,550,631.25. The trade was a 5.76% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James D. Plummer sold 1,511 shares of the company’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $381.34, for a total transaction of $576,204.74. Following the sale, the director directly owned 23,264 shares of the company’s stock, valued at approximately $8,871,493.76. This trade represents a 6.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 177,557 shares of company stock worth $66,423,642. 0.49% of the stock is owned by corporate insiders.

About Cadence Design Systems

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.