Freemont Management S.A. Trims Stock Position in Cadence Design Systems, Inc. $CDNS

Freemont Management S.A. cut its holdings in Cadence Design Systems, Inc. (NASDAQ:CDNS) by 9.4% in the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 45,300 shares of the software maker’s stock after selling 4,700 shares during the quarter. Cadence Design Systems accounts for approximately 1.9% of Freemont Management S.A.’s investment portfolio, making the stock its 10th largest position. Freemont Management S.A.’s holdings in Cadence Design Systems were worth $12,588,000 at the end of the most recent quarter.

A number of other hedge funds also recently bought and sold shares of CDNS. Whipplewood Advisors LLC increased its position in Cadence Design Systems by 933.3% during the first quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker’s stock valued at $26,000 after acquiring an additional 84 shares during the last quarter. Brown Lisle Cummings Inc. lifted its holdings in shares of Cadence Design Systems by 860.0% in the 1st quarter. Brown Lisle Cummings Inc. now owns 96 shares of the software maker’s stock worth $27,000 after acquiring an additional 86 shares during the last quarter. University of Texas Texas AM Investment Management Co. purchased a new position in shares of Cadence Design Systems during the 4th quarter worth about $28,000. Swiss RE Ltd. purchased a new position in shares of Cadence Design Systems during the 4th quarter worth about $29,000. Finally, Lodestone Wealth Management LLC bought a new position in Cadence Design Systems during the 4th quarter valued at about $30,000. Hedge funds and other institutional investors own 84.85% of the company’s stock.

Key Stories Impacting Cadence Design Systems

Here are the key news stories impacting Cadence Design Systems this week:

• Positive Sentiment: Benchmark upgraded Cadence to Strong Buy, and recent brokerage commentary put the average price target around $387, indicating Wall Street still sees upside from current levels. Zacks.com
• Positive Sentiment: Cadence recently launched new AI products, including the AuraStack AI Super Agent for PCB and advanced packaging design, reinforcing the company’s growth narrative in AI-driven design workflows. Business Wire article
• Positive Sentiment: The company also announced a partnership with Rapidus to advance agentic AI for advanced SoC design, which could support longer-term demand for Cadence’s software tools. Business Wire article
• Neutral Sentiment: Cadence is due to report second-quarter results on July 27, and some of the weakness may reflect investors taking profits or reducing exposure ahead of earnings. MSN article
• Negative Sentiment: Shares are also being hit by broader fears that Moonshot and other AI-driven tools could disrupt the EDA industry, pressuring Cadence and peers like Synopsys on concerns about future pricing power and competition. MSN article

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on CDNS. Stifel Nicolaus increased their price target on Cadence Design Systems from $395.00 to $432.00 and gave the stock a “buy” rating in a report on Tuesday, June 9th. 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 report on Wednesday, April 29th. Piper Sandler increased their target price on Cadence Design Systems from $319.00 to $325.00 and gave the stock a “neutral” rating in a research note on Tuesday, April 28th. KeyCorp lifted their target price on Cadence Design Systems from $405.00 to $425.00 and gave the stock an “overweight” rating in a research report on Tuesday, April 28th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Cadence Design Systems in a research note on Thursday, July 2nd. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $393.65.

Insiders Place Their Bets

In other Cadence Design Systems news, VP Paul Cunningham sold 2,000 shares of Cadence Design Systems stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $391.00, for a total value of $782,000.00. Following the completion of the transaction, the vice president directly owned 126,586 shares of the company’s stock, valued at $49,495,126. The trade was a 1.56% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through 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 Cadence Design Systems stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $381.34, for a total transaction of $576,204.74. Following the completion of the transaction, the director owned 23,264 shares of the company’s stock, valued at $8,871,493.76. This trade represents a 6.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 157,057 shares of company stock valued at $60,272,277. Insiders own 0.49% of the company’s stock.

Cadence Design Systems Stock Performance

Shares of NASDAQ CDNS opened at $330.11 on Friday. 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, Inc. has a 12 month low of $262.75 and a 12 month high of $416.69. The company has a 50 day simple moving average of $376.09 and a two-hundred day simple moving average of $328.57. The stock has a market cap of $91.05 billion, a price-to-earnings ratio of 76.95, a PEG ratio of 3.91 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS) last posted its quarterly earnings results on Monday, April 27th. The software maker reported $1.96 EPS for the quarter, beating the consensus estimate 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 firm had revenue of $1.47 billion during the quarter, compared to analysts’ expectations of $1.46 billion. During the same quarter last year, the firm earned $1.57 earnings per share. The business’s revenue for the quarter 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. As a group, analysts predict that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current year.

Cadence Design Systems Profile

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.