Rakuten Investment Management Inc. Boosts Stake 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 its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 50,512 shares of the software maker’s stock after purchasing an additional 33,982 shares during the quarter. Rakuten Investment Management Inc.’s holdings in Cadence Design Systems were worth $16,048,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently modified their holdings of CDNS. Y.D. More Investments Ltd purchased a new stake in Cadence Design Systems during the third quarter valued at $26,000. Caitlin John LLC purchased a new stake in Cadence Design Systems during the third quarter valued at $29,000. University of Texas Texas AM Investment Management Co. purchased a new stake in Cadence Design Systems during the fourth quarter valued at $28,000. Imprint Wealth LLC purchased a new stake in Cadence Design Systems during the third quarter valued at $31,000. Finally, Swiss RE Ltd. purchased a new stake in Cadence Design Systems during the fourth quarter valued at $29,000. Hedge funds and other institutional investors own 84.85% of the company’s stock.

Analyst Ratings Changes

Several research firms have issued reports on CDNS. Needham & Company LLC reissued a “buy” rating and set a $400.00 price target on shares of Cadence Design Systems in a report on Tuesday, April 28th. Wells Fargo & Company boosted their price target on Cadence Design Systems from $400.00 to $425.00 and gave the company an “overweight” rating in a report on Tuesday, May 26th. Piper Sandler boosted 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. Morgan Stanley cut their price target on Cadence Design Systems from $385.00 to $370.00 and set an “overweight” rating for the company in a report on Wednesday, February 18th. Finally, Stifel Nicolaus boosted their price target on Cadence Design Systems from $395.00 to $432.00 and gave the company a “buy” rating in a report on Tuesday, June 9th. Fourteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $386.59.

Cadence Design Systems Price Performance

Shares of Cadence Design Systems stock opened at $394.50 on Tuesday. The stock has a 50 day moving average of $346.64 and a 200 day moving average of $319.47. Cadence Design Systems, Inc. has a 12 month low of $262.75 and a 12 month high of $416.69. The firm has a market cap of $108.81 billion, a PE ratio of 91.96, a PEG ratio of 4.56 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 (NASDAQ:CDNS) last issued 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 return on equity of 28.44% and a net margin of 21.18%.The business had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.46 billion. During the same period in the prior year, the business posted $1.57 earnings per share. The company’s quarterly revenue 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. On average, research analysts expect that Cadence Design Systems, Inc. will post 6.23 EPS for the current fiscal year.

Insider Buying and Selling

In other Cadence Design Systems news, Director James D. Plummer sold 1,511 shares of the 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 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 value of $19,198,190.00. Following the sale, the chief executive officer directly owned 303,525 shares in the company, valued at $112,304,250. This trade represents a 14.60% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 177,557 shares of company stock valued at $66,423,642 over the last 90 days. 0.49% of the stock is owned by 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.