Key Points
- Cadence CEO Anirudh Devgan sold 51,887 shares on May 22 at an average price of $370, totaling about $19.2 million. After the sale, he still held 303,525 shares valued at roughly $112.3 million, and the trade was made under a pre-arranged Rule 10b5-1 plan.
- Cadence reported stronger-than-expected quarterly results, posting EPS of $1.96 versus consensus of $1.91 and revenue of $1.47 billion, up 18.6% year over year. The company also issued FY 2026 EPS guidance of 7.85 to 7.95 and Q2 2026 guidance of 2.02 to 2.08.
- Wall Street remains broadly positive on CDNS, with 14 Buy ratings and 3 Hold ratings. The stock’s average target price is $384.41, slightly above its recent trading level around $374.
Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report) CEO Anirudh Devgan sold 51,887 shares of the stock in a transaction 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 completion of the transaction, the chief executive officer owned 303,525 shares of the company's stock, valued at approximately $112,304,250. This represents a 14.60% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Cadence Design Systems Trading Down 2.0%
Shares of CDNS stock opened at $374.05 on Thursday. Cadence Design Systems, Inc. has a 52-week low of $262.75 and a 52-week high of $383.80. The stock has a market cap of $103.17 billion, a price-to-earnings ratio of 87.19, a P/E/G ratio of 4.52 and a beta of 1.13. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.47. The firm has a fifty day moving average of $317.92 and a 200-day moving average of $312.02.
Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings data on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 company had revenue of $1.47 billion during the quarter, compared to analysts' expectations of $1.46 billion. During the same quarter in the prior year, the company posted $1.57 EPS. The business's revenue 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. On average, equities research analysts forecast that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current fiscal year.
Institutional Inflows and Outflows
A number of institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its stake 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 valued at $8,511,888,000 after acquiring an additional 307,753 shares during the last quarter. State Street Corp increased its stake in shares of Cadence Design Systems by 1.1% in the fourth quarter. State Street Corp now owns 12,603,368 shares of the software maker's stock valued at $3,939,561,000 after buying an additional 135,206 shares in the last quarter. Geode Capital Management LLC increased its stake 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 valued at $2,378,707,000 after buying an additional 92,152 shares in the last quarter. Norges Bank acquired a new stake in shares of Cadence Design Systems in the fourth quarter valued at $1,352,922,000. Finally, Van ECK Associates Corp increased its stake in shares of Cadence Design Systems by 11.9% in the fourth quarter. Van ECK Associates Corp now owns 3,534,180 shares of the software maker's stock valued at $1,104,714,000 after buying an additional 376,654 shares in the last quarter. Institutional investors own 84.85% of the company's stock.
Wall Street Analysts Forecast Growth
Several equities research analysts have recently weighed in on the company. Berenberg Bank set a $440.00 price objective on Cadence Design Systems in a research note on Wednesday. Piper Sandler upped their price objective on Cadence Design Systems from $319.00 to $325.00 and gave the company a "neutral" rating in a research note on Tuesday, April 28th. Citigroup upped their price objective on Cadence Design Systems from $385.00 to $400.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Needham & Company LLC restated a "buy" rating and issued a $400.00 target price on shares of Cadence Design Systems in a research note on Tuesday, April 28th. Finally, Stifel Nicolaus set a $395.00 target price on shares of Cadence Design Systems in a research note on Wednesday, February 18th. Fourteen investment 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, Cadence Design Systems has an average rating of "Moderate Buy" and an average target price of $384.41.
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Cadence Design Systems Company Profile
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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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