Cadence Design Systems, Inc.

NASDAQ Global Select
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Bullish +72

Cadence Design Systems, Inc. $CDNS Shares Bought by Assetmark Inc.

AI-generated analysis

📈 Assetmark Inc. increased its Cadence Design Systems stake by 2.5% in Q1, holding 111,457 shares valued at $30.97 million.

🏦 Norges Bank acquired a new stake worth approximately $1.35 billion in the fourth quarter.

📊 J. Stern & Co. LLP grew its position by 10,159.3% to own 2.95 million shares valued at $923 million.

📈 Wellington Management Group increased its stake by 218.6%, now holding 2.55 million shares worth $798 million.

💰 Cadence reported Q1 EPS of $1.96, beating the consensus estimate of $1.91.

📈 Revenue reached $1.47 billion, exceeding analyst expectations of $1.46 billion.

🚀 Year-over-year revenue growth accelerated to 18.6% during the reported quarter.

💵 Net margin improved to 21.18% with a return on equity of 28.44%.

🔮 Company guidance for FY 2026 EPS is set between $7.85 and $7.95.

📈 KeyCorp raised its price target to $425 and maintained an overweight rating.

📈 Rosenblatt Securities increased its target to $410 with a buy rating.

📈 Stifel Nicolaus raised its objective to $432 and issued a buy rating.

📉 Director James D. Plummer sold 1,511 shares via a pre-arranged trading plan.

📉 VP Paul Scannell reduced holdings by selling 7,081 shares under Rule 10b5-1.

🏢 Institutional investors and hedge funds collectively own 84.85% of the company's stock.

Bullish Signals
  • Cadence Design Systems beat Q1 earnings expectations with EPS of $1.96 versus a consensus of $1.91.
  • Revenue of $1.47 billion surpassed analyst forecasts of $1.46 billion, indicating strong demand for EDA tools.
  • The company achieved an 18.6% year-over-year revenue increase, demonstrating robust top-line growth.
  • Net margin expanded to 21.18%, reflecting efficient operations and pricing power in the semiconductor design market.
  • Return on equity reached 28.44%, highlighting strong capital efficiency and shareholder value creation.
  • Major institutional investors like Norges Bank, J. Stern & Co., and Wellington Management significantly increased or initiated large positions.
  • Multiple brokerages including KeyCorp, Rosenblatt Securities, Stifel Nicolaus, Needham, and Citigroup raised price targets.
  • Analyst consensus maintains a Moderate Buy rating with an average price target of $393.65.
Risk Factors
  • Insider selling activity occurred in June, with Director James D. Plummer and VP Paul Scannell reducing their personal stock holdings via pre-arranged Rule 10b5-1 trading plans.
  • Total insider sales over the last 90 days reached $60.27 million, representing a 0.49% ownership stake for insiders.
Full Analysis
Cadence Design Systems, Inc. (NASDAQ:CDNS) saw increased institutional interest in the first quarter of 2026, with Assetmark Inc. growing its stake by 2.5% to own 111,457 shares valued at approximately $31 million. Significant activity was also recorded from other major funds in the fourth quarter, including Norges Bank adding a new stake worth roughly $1.35 billion, J. Stern & Co. LLP increasing its position by over 10,000% to hold nearly $923 million in shares, and Wellington Management Group raising its stake by 218.6%. Collectively, institutional investors and hedge funds now control 84.85% of the company's outstanding stock. The software maker recently reported strong financial results for the quarter ended April 27th, beating analyst expectations with earnings per share (EPS) of $1.96 against a consensus of $1.91. Revenue reached $1.47 billion, slightly surpassing the forecasted $1.46 billion, while year-over-year revenue growth stood at 18.6%. The company demonstrated robust profitability with a net margin of 21.18% and a return on equity of 28.44%, setting forward guidance for FY 2026 EPS between $7.85 and $7.95. Analyst sentiment remains positive, with multiple brokerages raising price targets and maintaining buy ratings following the earnings release. KeyCorp increased its target to $425, Rosenblatt Securities raised theirs to $410, and Stifel Nicolaus set a new objective at $432. The consensus average price target is currently $393.65 with an overall rating of Moderate Buy. Conversely, insider selling activity was noted in June, with Director James D. Plummer and VP Paul Scannell executing pre-arranged Rule 10b5-1 trades to reduce their personal holdings.