PCM Encore LLC Invests $735,000 in Cadence Design Systems, Inc. $CDNS

PCM Encore LLC bought a new stake in Cadence Design Systems, Inc. (NASDAQ:CDNS) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 1,960 shares of the software maker’s stock, valued at approximately $735,000.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. MUFG Securities EMEA plc increased its position in shares of Cadence Design Systems by 113.9% during the fourth quarter. MUFG Securities EMEA plc now owns 11,159 shares of the software maker’s stock valued at $3,488,000 after acquiring an additional 5,943 shares during the last quarter. Sun Financial Inc purchased a new position in Cadence Design Systems in the fourth quarter worth $1,225,000. Leonteq Securities AG bought a new position in Cadence Design Systems in the 4th quarter valued at $1,105,000. PNC Financial Services Group Inc. increased its position in shares of Cadence Design Systems by 1.0% during the 4th quarter. PNC Financial Services Group Inc. now owns 369,717 shares of the software maker’s stock valued at $115,566,000 after purchasing an additional 3,562 shares during the last quarter. Finally, Indivisible Partners purchased a new stake in shares of Cadence Design Systems during the 4th quarter valued at $4,795,000. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on CDNS shares. Wall Street Zen raised shares of Cadence Design Systems from a “hold” rating to a “buy” rating in a report on Saturday, August 1st. Piper Sandler raised their price objective on shares of Cadence Design Systems from $325.00 to $349.00 and gave the stock a “neutral” rating in a report on Tuesday, July 28th. Wells Fargo & Company lifted their price objective on shares of Cadence Design Systems from $400.00 to $425.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 26th. Rosenblatt Securities boosted their target price on shares of Cadence Design Systems from $410.00 to $420.00 and gave the company a “buy” rating in a research note on Tuesday, July 28th. Finally, Citigroup increased their target price on shares of Cadence Design Systems from $400.00 to $420.00 and gave the company a “buy” rating in a research report on Tuesday, July 28th. Thirteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Cadence Design Systems presently has an average rating of “Moderate Buy” and an average price target of $405.69.

Insider Activity

In related news, CEO Anirudh Devgan sold 51,822 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $395.00, for a total transaction of $20,469,690.00. Following the sale, the chief executive officer directly owned 278,524 shares in the company, valued at approximately $110,016,980. This represents a 15.69% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 7,081 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $393.91, for a total transaction of $2,789,276.71. Following the sale, the vice president owned 32,181 shares in the company, valued at $12,676,417.71. The trade was a 18.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 89,599 shares of company stock valued at $35,710,627. 0.49% of the stock is currently owned by corporate insiders.

Cadence Design Systems Stock Performance

Shares of CDNS opened at $313.59 on Friday. Cadence Design Systems, Inc. has a 1 year low of $262.75 and a 1 year high of $416.69. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.53. The stock’s fifty day moving average price is $355.01 and its two-hundred day moving average price is $331.34. The firm has a market cap of $86.36 billion, a PE ratio of 62.34, a PEG ratio of 3.38 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS) last posted its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share for the quarter, topping the consensus estimate of $2.05 by $0.06. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%.The company had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.58 billion. During the same quarter in the prior year, the company earned $1.65 EPS. The firm’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. On average, equities research analysts forecast that Cadence Design Systems, Inc. will post 6.4 EPS for the current year.

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.