M&T Bank Corp Reduces Stake in Cadence Design Systems by 11.1%

M&T Bank Corp has decreased its holdings in Cadence Design Systems, Inc. (NASDAQ: CDNS) by 11.1%, according to a recent filing with the Securities and Exchange Commission. The bank now owns 31,419 shares of the software company after selling 3,924 shares during the second quarter. As of the end of this reporting period, M&T Bank Corp’s stake in Cadence Design Systems was valued at approximately $9.68 million.

Several other institutional investors have also adjusted their positions in Cadence Design Systems recently. Costello Asset Management INC acquired a new stake valued at around $25,000 in the first quarter, while the Saudi Central Bank purchased shares worth approximately $27,000. Additionally, Barrett & Company Inc. invested around $31,000 during the second quarter, and E Fund Management Hong Kong Co. Ltd. increased its stake by 41.1%, now holding 127 shares valued at around $39,000. Institutional investors currently hold 84.85% of Cadence Design Systems’ stock.

Analyst Ratings and Price Targets

In recent weeks, various brokerage firms have revised their outlooks on Cadence Design Systems. Oppenheimer upgraded the company from an “underperform” to a “market perform” rating, setting a price target of $275.00. KeyCorp reaffirmed an “overweight” rating with a target price of $405.00. Meanwhile, Citigroup initiated coverage with a “buy” rating and a target price of $385.00.

Further endorsements came from Needham & Company LLC, which reiterated a “buy” rating with a target of $390.00, and Wolfe Research, which maintained an “outperform” rating with a price objective of $385.00. Currently, fifteen investment analysts have rated Cadence Design Systems with a Buy rating, while four have issued a Hold rating. Data from MarketBeat indicates a consensus rating of “Moderate Buy” and a target price of $379.11.

Insider Transactions and Company Performance

In related news, Ita M. Brennan, a director at Cadence Design Systems, sold 180 shares on September 10, valued at about $60,211.80 at an average price of $334.51. Following this transaction, Brennan’s remaining shares were worth approximately $2.62 million. Similarly, Paul Cunningham, a vice president, sold 1,000 shares on December 1 for a total of $312,640.00 at an average price of $312.64. Post-sale, Cunningham holds around $30.35 million worth of shares, representing a 1.02% decrease in his position. In total, insiders have sold 16,230 shares valued at $5.5 million over the last 90 days, with insiders currently holding 0.37% of the stock.

As of Thursday, shares of Cadence Design Systems opened at $336.11, with a market capitalization of $91.49 billion. The company maintains a PE ratio of 86.63, a price-to-earnings-growth ratio of 3.98, and a beta of 1.05. Cadence Design Systems has a debt-to-equity ratio of 0.48 and a current ratio of 3.05.

In its most recent earnings report released on October 27, Cadence Design Systems reported earnings per share (EPS) of $1.93, surpassing analysts’ expectations of $1.79. The company generated revenue of $1.34 billion, exceeding the consensus estimate of $1.32 billion. Year-over-year, revenue increased by 10.1%, compared to an EPS of $1.64 during the same quarter last year. Cadence Design Systems has projected its FY 2025 EPS guidance between $7.020 and $7.080, with a Q4 2025 EPS guidance of $1.880 to $1.940. Analysts anticipate an average EPS of $5.41 for the current year.

Cadence Design Systems, Inc. specializes in providing software, hardware, services, and reusable integrated circuit (IC) design blocks globally, offering a range of functional verification services.